SoundCloud is in trouble – it’s being sued over unpaid royalties

SoundCloud is not a streaming service in the way that Apple Music, Spotify, Tidal are streaming services.

‘SoundCloud is a platform by creators, for creators.

But at the same time, those labels knew SoundCloud was a great marketing platform, a popular service with artists and fans, and had access to a massive community of music consumers. And so a deal with Warner Music was announced, and then with indie-label repping Merlin. We asked them to take a licence to cover the use of all our members’ repertoire or otherwise stop infringing. But back in the UK it seems negotiations have not been going so well. When contacted by Billboard, a spokesperson for PRS would only confirm that the organisation has “commenced legal proceedings against SoundCloud”, but refused to comment further. “We admire builders and also their be effective, and offer all right of first publication hold extensive influence over their own material located on the platform”, it provides.

In recent months, when rightsholders have complained about what they see as misuse of safe-harbour protection, they have often grouped SoundCloud and YouTube together as examples.

“At which point the composer is being robbed by both SoundCloud and the act”.

Buse goes on to say that the “difficult decision” to begin litigation has been taken because SoundCloud “continues to deny it needs a PRS for Music licence” for its streaming service in the United Kingdom and Europe, therefore rejecting the payment of members’ royalties.

BASCA chairman and Classical Committee chair Stephen McNeff added: “At BASCA we are always happy to embrace innovative technology as a way for music creators to be heard, but our rights must be protected through the proper licensing mechanisms.”

SoundCloud has been having a rough year so far.

Yep, you read that correctly: MORE songs will be removed.

“It is regrettable that PRS has chosen to reconsider continuing its commercial negotiations”, says SoundCloud.

Hmmm. Maybe SoundCloud is only willing to discuss a PRS licence for its fabled subscription service, rather than its current free platform?

BASCA CEO Vick Bain has issued a statement in support of the legal action brought against SoundCloud by PRS for Music over a licencing disupute with the streaming service.

“This is because it is important we establish the principle that a licence is required when services make available music to users”, the email explained.

PRS documents proof of this, saying that the service only removed 250 posts from the list of 4,500 created by members.

There are rumours that a licensing agreement with Universal Music is expected imminently, but Sony Music recently pulled all of its music from SoundCloud after negotiations stalled.