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PRS welcomes code of conduct review, though rejects some of its proposals
By Chris Cooke | Published on Tuesday 3 June 2014
PRS For Music has welcomed the publication of an independent review of its code of conduct put together by Walter Merricks, who was appointed to the not at all dull sounding job of Independent Code Reviewer at the British Copyright Council last year.
As previously reported, the Council brings together ‘collective management organisations’ from across the copyright industries, and has played a key role in identifying standards for the collective licensing domain, something that has concerned both the UK government via the Hargreaves Review and the European Commission.
Merricks was asked to check that the music publishing sector’s collecting society was compliant with both its own code of conduct, which was revised in 2012, and the statutory minimum standards which became law earlier this year. The Reviewer concluded that PRS was indeed compliant, though made a number of recommendations about how the society might improve the service it provides licensees, some of which the organisation has welcomed, others of which it has rejected.
Recommendations PRS welcomes includes the suggestion that the society should cooperate with the record industry’s rights body PPL on code of conduct matters, and should – along with PPL – appoint and then consult panels of small business and broadcast users of music content. As previously reported, PRS and PPL have both previously committed to work more closely together on a number of matters.
However, PRS disagrees with Merricks’ conclusion that collecting societies are “quasi public bodies”, and should therefore publish commercial plans. In a statement the rights group said: “As a private organisation, owned by its membership, PRS For Music is not a beneficiary of government funding, and does not have privileged status afforded by law. PRS For Music therefore, deems the follow on recommendations, including publishing commercial plans, as inappropriate”.
On the report in general, PRS boss man Robert Ashcroft added: “We are generally pleased with Walter Merricks’ code review and welcome the opportunity to work with our stakeholders in the coming months to implement his recommendations across the business. PRS For Music was the first British collecting society to put in place a Code Of Conduct. We strive to listen to and build strong relationships with licensees and fairly represent our members through our commitment to transparency in all operations”.
Adopting a conciliatory tone, despite rejecting some of Merricks’ proposals, Ashcroft goes on: “Although the report shows a lack of understanding about the commercial nature of our business, it serves as an important checkpoint to ensure that we are on course to provide the highest possible service to members and licensees alike”.
