Copyright Tribunal backs PRS in cinema licensing dispute

The Copyright Tribunal has ruled in favour of PRS for Music in a long-running dispute with the UK Cinema Association (UKCA) over the licensing of music used in cinemas, approving significant changes to the tariff paid by cinema operators.

The decision supports PRS’s argument that the existing tariff, last negotiated more than 20 years ago, no longer reflects modern cinema practices. The Tribunal accepted evidence that films now make greater use of music than they did in 2005 and approved a revised licensing framework that increases the value attributed to music within the cinema experience.

Under the revised tariff, cinema royalty payments will be calculated solely on customer admissions, replacing a dual-tariff system that also allowed operators to pay a percentage of ticket revenue. The royalty rate will increase from 7.33p to 7.9p per admission, while the annual minimum fee per screen will rise from £75 to £131.50. Royalties for concert screenings will also increase from 3% to 4% of ticket and booking fee revenue.

The new licence terms will be finalised in consultation with the UKCA before returning to the Tribunal for final approval. Once implemented, the higher royalty rates will apply retrospectively to relevant music use from 1 July 2024 and will rise annually in line with inflation.

PRS for Music Chief Commercial Officer Dan Gopal welcomed the ruling, saying it recognised the increased value of music in cinemas and would help ensure songwriters, composers and publishers receive higher royalty payments when their works are used on screen.