YouTube And PRS Continue Dispute Over Copyright Licence Fees

YouTube, who are owned by Google, has pulled hundreds, if not

thousands, of videos from its YouTube (http://www.youtube.com/) website following

failed negotiations with the Performing Rights Society to come to

an agreement regarding copyright licence fees.

The Performing Rights Society (PRS) issues copyright licences to

individuals and organisations for the right to broadcast and

perform music artists works in public and collects royalty payments

on behalf of the artists in the UK.

The existing licence between YouTube and the PRS expired on 30

January 2009 and the parties have been at odds over the rate of

royalty which YouTube should pay for each broadcast of a music

video.

The PRS argue that the rate that they are asking for is in line

with the recommended rate specified by the Copyright Tribunal in

2007. The Tribunal decided that a music artist should receive 8% of

all gross revenue received in respect of each broadcast or

performance.

YouTube however, argue that this rate is simply too high for

websites such as YouTube which does not charge a subscription to

its viewers, but rather makes money from sponsorship and

advertisements. The effect being, according to YouTube, that the

website would be running at a loss which would be

unsustainable.

It has been suggested by some commentators that the decision to

pull music videos from the YouTube website was a tactic to

encourage or even entice the PRS to agree terms over the licence

fees.

However, with the existing licence expired, YouTube cannot

legally continue to broadcast music videos that require a licence

from PRS. YouTube would be broadcasting copyrighted material

without a licence and therefore without the consent of the

copyright owner, which is a "prohibited act" under the

Copyright Designs and Patents Act 1988.

Copyright holders are however unlikely to enforce their rights

while negotiations are ongoing between YouTube and the PRS. YouTube

may simply be taking the...