Music Industry For Its Members example essay topic

This report will look at each association and organisation in turn and assess their relevance to an artist / writer running their own record label. The report will discuss the various aims, functions, purpose, finances and structures of each organisation while also showing what interest they have in intellectual property. The British Phonographic Industry (BPI) was formally incorporated in 1973 when initially its aims were to combat the growing problem of music piracy. Since then, the BPI has represented the views and concerns of British record companies not just in music piracy, but in aspects of the music industry such as Rights negotiations, promotion of the industry, and research and publication of key statistics. BPI has an interest in over 90 percent of music recorded and released in the United Kingdom (UK) due to the fact that the BPI represents over 300 record companies. The BPI endeavours to help record companies bring about better business even if the company is a member or not.

They have succeeded in pursuing Copyright Tribunal decisions that will benefit the industry as a whole. By continually lobbying and promoting the industry with its economic and cultural value, the BPI hope to improve perceptions and thus influence the policy makers to change the current laws. Currently the BPI is aiming to cut VAT (value added tax) on compact disc's completely claiming the music is of cultural experience and value, rather than just entertainment. This is a hard aim to achieve as the perception of the industry at the present time is false, only a small percentage of the industry really earn enough income to sustain a living purely through music.

This perception needs to change before the law will. When it is felt the record label it wants to expand its repertoire abroad to foreign markets, the BPI will help give a better understanding of foreign markets and develop relationships with governing bodies. BPI is a strong supporter of MIDEM (an annual international trade fair) in the south of France as one fifth of all the companies attending are from the UK. However the BPI's main interest abroad is to do with gaining a foothold on the American music market for its members. Recent initiatives include a Best of British Virgin Megastore in New York to try to promote UK artists around North America. The BPI also organised a music industry briefing course for overseas British Consulate's and Council's for the first time ever; insight into Russia's music market and reports on the similarities and differences between UK and French music industries.

The flagship of the BPI is the BRIT Awards, a celebration of British music broadcasting to a world-wide audience of approximately 130 countries. Not only is this an excellent opportunity for British music but the awards are also run at a profit for the BPI and being associated with the BRIT Awards will increase sales and chart position almost immediately. The majority of the BPI's decisions and strategies are formed by the BPI Council, supported by the BPI Committees and then implemented by the 26 staff BPI employ. The BPI Council is elected by all the members at the AGM on a policy of 1 record company, 1 vote regardless of the size of the record company. This is stop the major record companies such as Sony and Universal electing Council members favourable to there own cause. In theory the artist's independent small record label has the same influence when it comes to electing members to represent their label and the industry as any other record company.

The BPI Committees comprise of relevant individuals from member companies. The different Committees look at the issues involving rights, finance, public relations, classical and international. Each Committee is there to co-ordinate responses, discuss issues and promote common themes to and for its members and the media. All the Committees meet regularly while the Council meets approximately every 2 months.

The full services the BPI offers to its members are: Having negotiated industry agreements on behalf of its members, the BPI will allow access to them. Currently the BPI is in Rights negotiation with the Mechanical Copyright and Protection Society (MCPS) over royalty rates on DVD's. The BPI legal department offers free advice on music industry issues. To keep its members up to date on industry issues, developments, events and trade fairs; the BPI will join the business to their mailing list. Allows access to the BPI's Anti Piracy Unit, which has developed a well respected reputation for tackling music piracy. They deal with infringements of copyright of BPI members as piracy costs the UK music industry millions of pounds each year.

The BPI is also a founding member of the Alliance against Counterfeiting and Piracy (AACP), which is working towards the protection of intellectual property rights by improving anti-piracy legislation. The BPI are so serious about fighting piracy that one quarter of the staff and budget are used to combat this problem. At international trade fairs such as MIDEM, the BPI gives discounts to its members to be on their stand. The BPI sets up seminars and training courses at either a reduced rate or free for its members. A discounted trademark registration package negotiated by the BPI Savings on chart data. This entitles members to view facts and figures so they can understand the music industry to a better degree at a cheap cost.

Statistics are published every quarter on the latest industry results and every year a handbook is compiled and produced to display a guide to the industry in numbers for members and the media. Along with this, the BPI will produce market information booklets throughout the year providing recent statistics. This is all down to collaboration with the British Association of Record Dealers (BARD) to have an independent chart company in which each organisation own 50 percent. The Official Chart Company (OCC) therefore was set up to contractually employs a company (Millward Brown) to collate all the data required every time a record was sold. Over 99 percent of over the counter sales are recorded from approximately 5,600 retail stores nation-wide. This allows a record label to find out where, what shop, how many are sold, to see if distribution was correct and perhaps even where to advertise specifically.

At industry events such as the BPI Annual General Meeting (AGM), members will have greater involvement Information and assistance from the Research department and free access to the BPI library Use of the BPI facilities such as conference rooms for meetings and interviews Entry into the BPI membership directory which is sent out to thousands of music business contacts Membership into the BRIT Awards voting academy Membership of the International Federation of the Phonographic Industry (IFPI) Full access to the BPI web site and any up to date statistics posted. Full membership to the BPI is open to UK based record companies and is based on turnover annually, subject to a minimum lb 75 fee. The subscription rate is set annually by the BPI Council and is generally 0.3 percent in the former year. Newly established companies may be allowed to join membership for the minimum fee.

Despite the neutral 1 company 1 vote system policy adopted by the BPI, the subscription rate means that the richest companies have to pay the largest sum of money. This inevitably puts the mind set that these companies are going to only want to follow policies predetermined by the BPI that benefit's their own business plans. These are generally the five major record companies, Sony, E.M.I., B.M.G., Warner and Universal. The BPI is not able to survive without these large subscriptions and find their hands bound to some degree over policies that could well help British music abroad but are being dismissed by a few members, the major record companies. They find the policy conflicts with a business plan already in operation by a record company (supplying a large subscription rate) that gives an advantage, which will not want to be relinquished. Having said all this though, the label run by the artist / writer would benefit from being a member of the BPI.

These conflicts inside the BPI lead to the smaller independent record companies feeling manipulated and having their issues undermined. This inevitably meant a split and as such the Association of Independent Music (AIM) was founded. AIM is a non-profit making organisation, which represents independent record labels; it is totally free from influence from any major record companies. Its ultimate purpose is to level the playing field for all independent labels. AIM's focus on policies are set by the members through the AIM Board and Committees and implemented by its staff. These services are as follows: AIM has set up a Business Centre with an email service for business information and advice from the AIM Doctors.

Each doctor can give specialist advice on legal, financial, and new media issues. There is also AIM's guide to Survival and Success in the Music Business which demonstrates and shows the 'what, why and how'; of the music industry. These services are clearly set up to help the smaller labels and really sets the tone for the whole organisation. Unlike the BPI's top down approach, AIM is looking far more at the grass roots and allowing a far higher integration of its members into making agenda decisions. Not only is this good to keep AIM functioning but it also is necessary due to the small staff count; without the members getting involved, AIM would struggle to really make a difference.

AIM recognises the difference in marketing and promotion power between the large major and small independent labels, it has therefore seen the need to set up networking events such as Big Wednesday. These events allow access to the essential industry people needed to meet and network in order to gain effective marketing and promotion on forms of media such as television and radio, in what is already a very highly concentrated market. AIM is also helping members receive the correct training and supplying mentors to help. A work experience scheme received great success with many students gaining full job offers, and free drop in surgeries around the country aimed at solving problems.

There is a real concerted effort on AIM's behalf to encourage more and more networking between record labels and everyone else in the industry. To help AIM achieve its goal of allowing independent labels compete fairly with major record companies, various initiatives in the new media market. Music indie is a project that AIM believe will 'allow smaller independent record labels take advantage of their community mass without removing their individual ability to make business decisions'; (web 2003). AIM is always trying to give its members more and more services, however it has decided against an anti-piracy unit due to the funds needed to set up and sustain such a unit. Much like the BPI, AIM can and will negotiate on behalf of its members with other industry organisations such as MCPS, Phonographic Performance Limited (PPL), Musicians Union (MU), Equity and broadcasters. The most active of these is currently the on going negotiations with MCPS regarding which royalty rate record labels should pay MCPS by, AP 1 or AP 2.

The main difference between the two schemes are; when on the AP 1 scheme, the label only pays royalty money to MCPS on the number of records sold. The AP 2 scheme however makes labels pay royalty money on all records pressed, regardless on how many are sold. AP 2 scheme naturally therefore has the disadvantage of paying more royalty rate to MCPS than the AP 1 scheme. However to be joined to the AP 1 scheme, a label has to show they are financially secure, hence the major record companies are on the AP 1 scheme and a large number of independent labels are on the AP 2 scheme.

AIM has also negotiated with MCPS and PPL the simplifying of product registration via AIM's free software called, which automatically sends the data straight to Cat Co, PPL's way of collection information of a recording for the industry. A discount on the OCC's statistics has also been arranged for AIM to allow its members to try to compete when marketing and promoting a record. In the same way as the BPI, AIM will lobby government, often for similar changes for example, VAT on compact discs. However they also differ on certain issues, the most prominent being the desire for a New York office for UK music. The office it is believed would help re-establish a British presence that has dwindled, in the American market. The BPI does not see this venture as worth while due to its most powerful members, the major record companies seeing it as a waste of money.

The major record companies are multinational and already have offices set up to help their own artists; they see a New York office for independent labels as another way for their own market share and penetration to decrease. Without the backing and funding of these multinational companies, the BPI will not fully support the project and thus not supply the necessary funding required. AIM members are represented by Committees, which answer to an elected Board. Along with this only 5 full time staff with Alison Wenham being the Chief Executive.

The Board consists of 15 elected member each elected by a 1 man, 1 vote system. Every AGM one fifth of the Board retire by rotation (longest serving first) and they can not be re-elected for 12 months. This gives a unique ethos and prevents the organisation being institutionalized. There are 8 Committees each looking at different aspects of the music industry and how AIM's members can benefit them. They are International, Marketing, MCPS, Business and legal affairs, Government affairs, training, education and mentoring, membership and United States of America Committee. Companies eligible to join AIM as a full member are independent record labels and distributors and independent Internet rights who deal in downloadable music based in the UK.

However if a major record company owns 51 percent or more of a company then the company concerned are not eligible to join. For the artist / writer running their own record label it will cost lb 100 plus VAT at 17.5 percent (lb 117.50) to join and become a full member of AIM. Annual subscriptions are determined by the AIM Board, currently it is at 9 percent of the record label's PPL income including any subsidiaries. BPI members can also be members of AIM and vice versa and to help this a dual membership agreement is being finalized. This though sounding innocent, is big problem as many members are leaving BPI and joining AIM due to the lack of influence they feel they have with BPI. This problem, though not a financial one for the BPI as the subscription rates of the major record companies will always be there, is a problem when facing Government.

The BPI believe they are the voice and embodiment of British music yet AIM has more members. The conflict of interests leaves Government confused on the record industry's problems and where it is heading in the future, as both sides can not seem to agree on various issues. So AIM may be seen as the face of British music, yet it has limited funds and limited staff to ever make an impact nationally and internationally. Once the point has been made to the BPI and the major record companies that the way the industry is set up in favour of the larger richer companies can not continue; BPI and AIM will be able to reunite and effectively lobby Government as one voice for change. The British Association of Record Dealers (BARD) is a trade association 'formed in 1988 by a group of record dealers - independents, multiples and wholesalers who saw the need to initiate constructive dialogue between dealers, the record companies and their trade body the BPI'; . (web 2003). BARD has become a respected voice within the music industry due to its links with other industry organisations and Government departments.

Despite this BARD does not have much power of influence outside its agreements and relationships with the BPI and the British Video Association (BVA). Based in Bournemouth away from the majority of the Associations (which are situated in London), BARD has less personal contact and instant networking abilities than the other Associations. It has also gone a long way however, to gaining valuable links with overseas retail associations such as the National Association of Record Merchandisers (NAM) to exchange information and knowledge. In 1999, the Global Entertainment Retailers Association (GERA) being formed. In 2002 GERA Europe was incorporated and the UK was represented via BARD. BARD will communicate and negotiate with departments ranging from local to Government.

On behalf of its members BARD will view and monitor or oppose any legislation with a relevance to its members and will always act in their best interest. Just like the BPI and AIM, BARD also tries to promote the music industry for its members via such staged events as the Mercury Music Prize or the BRIT Awards. BARD can in no way negotiate discount on trade for retailers nor can it become involved in terms of trading as this would be seen as anti competitive. The biggest aims of BARD is to 'ensure the highest standards of retail and wholesale in the music industry'; , (web 2003), and to create a forum of discussion for different sectors of the industry to come together to meet with members and the public. Before the OCC was founded, BARD saw the need to ensure that the charts reflected a true representation of record sales. In consultation and conjunction, BARD worked with the BPI and other organisations in the industry to reach a new structure of compiling the data.

Subsequently a chart supervisory Committee was set up by BARD to regulate the charts to make sure a level playing field for all was established. Soon the BPI and BARD created the OCC to calculate the charts and then sell the information to the industry, but at a discount to it members. Among BARD's top agenda's is the fight against piracy as this directly affects its members through loss of earnings. With the BPI leading the fight, BARD has contributed by raising finance and working with police and trading standards to fight piracy. BARD is always trying to improve sales opportunities for its retailer members. This is even more important now than ever as record sales is a dying market and is declining; this means purely selling records is not a viable future.

Music retailers such as HMV and Virgin have had to turn into an entertainment shop selling videos / DVDs/ computer games and mobile phones in order to survive. This is all especially true with high street rent rising higher and higher. BARD also helps improve sales opportunities by helping with distribution for members of AIM such as independent record labels. Distribution is always the biggest problem for small record labels; no distribution equals no sales, which in turn represents no income. Independent labels are also often the most innovative when it comes to new business models. In the current climate, music being distributed and sold on the Internet has not yet been solved, but is looking more and more realistic every day.

BARD's links with AIM could well mean that retailer members are first to join in with these labels on joint ventures to sell music via the Internet. Having said that, recent history suggests that retailers are very slow to adapt to current trends. The big shift towards Supermarket sales and online trading via web sites such as web have meant retailers are losing market share. Even companies such as Microsoft and Apple selling music per download are taking market share and profit away from shop retailers. As the label run by the artist / writer would be a member of AIM, the links with BARD and the OCC would be beneficial. Just like many other trade association, BARD is structured with an elected Council supported by Committees.

The BARD Council has a maximum of 18 elected representatives who govern the affairs of the Association. The Committees created specialise in these areas: The Advisory Committee The CSC Committee The BARD / BPI Liaison Committee - This Committee has managed to improve business practises and enabled a recognised nation wide release date system, so all retailers are able to release a record on the same day. The Operations Committee The Information Technology Committee - This Committee was designed to be at the forefront of what the customer wants in new formats and technology via music. The Committee is then able to discuss with retailers the future of the market. The Marketing Committee. The BARD / BVA Liaison Committee - As high street record shops became increasingly involved in selling videos and DVDs, a working relationship was necessary with the BVA regarding operational issues.

The Multi Media Committee - This Committee was designed to look at operational procedures with the aim of a more efficient supply chain. There are three different classes of membership in BARD, a full member, an associate member and an affiliated member. Any applicant wanting to join will only be allowed by a majority decision by the Council. The Phonographic Performance Limited (PPL) is an industry collecting society representing over 3000 record companies and performers. PPL collects licence income from broadcast and public performance users and distributes, minus running costs, to its record company members and performers. PPL also negotiates and grants licences to broadcasters such as the BBC or independent radio for the use of sound recordings.

They also grant licences to all users in the public performance sector such as pubs, clubs, restaurants and hotels. All these procedures are normally all controlled by lawyers in the Business Affairs departments of record companies. At the end of every financial year, PPL distribute revenue received from broadcasts and public performances of the sound recording annually to its members and performers. However due to the length of cycle for collection, analysis and distribution, the revenue distributed will be that of one year previous.

Performer allocation is shared on a track by track system equally and given to the relevant record company member. In order to qualify to receive this income, performers must be a citizen or resident of the territory or those that have reciprocal agreement with that territory in question where the sound recording was made. To make this possible, PPL has set up reciprocal agreements with overseas societies. Every record company is paid the same rate per unit of time to make the basis of distribution completely fair for all. Performers are then paid in accordance to their own agreements with performer organisations.

The way PPL allocate distribution payments is based on relevant data being collected from the record company, performer and user, which is then matched to data that PPL holds. PPL have decided due to administration costs that to analyse each report from a user and thus calculate the exact revenue required to pay the performer would be too much. They have chosen a combination of user reports and data from various sources to pay revenues from. They have decided that smaller radio stations and night clubs are impractical to gather accurate data from, as they are not legally bound to do so.

However this view may well change as the industry is already losing money from diminishing record sales world wide. Other areas of the industry my well demand that this lost income is required to keep their own business afloat. This is especially true when PPL last year collection lb 75.5 million of which lb 61.1 million (Low de, 2003) was Net Distributable. That revenue is then spilt 50/50 between record labels and performers. The Net Distributable could be even higher due to the many tribunals PPL have been in over the years, at a cost of approximately lb 1/2 million pounds for each tribunal. This means as a collection society, PPL can be, slow and expensive to run.

The distribution policy now in place runs by these guidelines: As said previously, the record label receives 50 percent of the net distributable revenue collected by PPL. The other 50 percent are split between featured performers and non-featured performers on a track by track basis. PPL does allow performers to work out their own contractual agreements for PPL income but generally the featured performer on the track is allocated 65 percent of the original 50 percent except where the conductor is the only featured performer then his allocation will be 32.5 percent. The 35 percent that are left are then shared out between non-featured performers on there own agreed percentage shares. Minimum payment to any performer is lb 25 and money will be held in an account until this minimum level has been reached. PPL's issues range from online rights from labels not being granted to having limited dubbing rights, but the main issues is equitable remuneration is which artists along with songwriters now receive income if the sound recording is broadcast.

This had led further with the introduction of Royalties Reunited through the Performers Forum where old songs could well owe musicians substantial money. As previously stated, PPL has started up Cat Co to simplify and collect a sound recording database. Here is a diagram showing simply how Catch works: Electronic submissionMCPSOtherPPLElectronic amendment correction To become a member of PPL, the criteria are very simple. It is completely free to join PPL but the applicant must hold the public performance and broadcast rights in the UK for repertoire. In the artist / writer's circumstance, they would join PPL (and VPL) via their own independent record label to collect royalty income.

The Video Performance Limited (VPL) is the UK organisation that was established in 1984. VPL works along side PPL in the music industry by collecting and administering the broadcast, dubbing and public performance rights in music videos. Ultimately VPL represents the owners of the copyright in music videos. Currently there are 800 members in VPL, most of them being record companies due to the likely hood that they paid for the sound recording and video to be produced, thus they then own the copyright. There are more than 45,000 music videos currently registered with VPL. In 1995, Music Mall, a trading division of VPL was established to work the back catalogue of videos registered with VPL.

Music Mall therefore can research, source, duplicate, supply and deliver any music video registered and then subsequently cleared to various forms of broadcasting national and internationally at a price. Music Mall can assist by both the supply of the music video; but also by organising the VPL dubbing and site licences, which are necessary. The services offered are marketed internationally via festivals such as Mip com and Nate. The distribution policy now followed by PPL was negotiated in conjunction with other industry bodies, namely the Association of United Recording Artist (AURA) and the Performing Artists' Media Rights Association (P@MRA).

The difference being that PPL negotiates with the broadcasters to receive revenue, then, AURA and P@MRA negotiate with PPL to give the money to their members. Both these organisations were formed approximately the same time in 1995/1996 primarily to discuss and negotiate equitable remuneration. Many industry people felt they did not have a say so these two organisations were formed. AURA primarily by the Music Managers Forum (MMF) ironically because they did not want their own artist missing out on income that themselves could then receive via their contractual agreement of 15 percent with the artist.

This means that AURA really has no presence outside the MMF. AURA's function is to distribute the PPL royalties it receives to named artists that are members. AURA Board members are elected and rotated as per Memorandum@MRA claims to be a collecting society but really does the same job as AURA and distributes royalty income. P@MRA is a non-profit making organisation with over 16000 members. The main difference between the two organisations is who the members of each are. AURA consistently has members that are named artists where by P@MRA usually has session musicians as its members.

AURA is able to do this by only allowing artists or producers to join if they have performed on a commercially released recording. The more performance the member gets, the more weighted the voting is in their favour. The artist / writer would join these organisations depending on any success as an artist, and would join because of being a performing artist. P@MRA is the only UK society to have signed bilateral reciprocal agreements with overseas societies to collect equitable remuneration and has worked tireless with a small workforce to maximis e their member's income. This year in October a total of lb 6.3 million was paid out to P@MRA members, an increase of lb 2.7 million. They also lowered the threshold of minimum payment from lb 25 to lb 5 which meant almost 2000 members received their first payment.

It is free to join P@MRA but they do take 9.5 percent as an administration fee from the money collected in the UK. P@MRA's policies are 'directed by a board of performers and professionals from every area of the business. They are elected from the membership by the membership and can include up to 5 featured, 5 non- featured and 4 independent members'; . (web 2003). This is diagram showing the internal structure of P@MRA: Joining PPL, AURA and P@MRA in the Performers Forum are the Musicians Union (MU), British Actors Equity Union (Equity) and the Incorporated Society of Musicians (ISM).

The MU was founded in 1893 and throughout the years has always tried to give musicians and better service and a democratic organisation. Recently the MU has become a prime mover in P@MRA. Currently the MU is run by and Executive Committee with the General Secretary being John Smith. The MU considers it must to look after every type of musician and has over 30,000 members. The MU believes that the only way forward in the music industry today, is by helping the grass roots. Local musicians playing live are the future, as it gives musicians experience to improve their live craft.

This natural view leans towards the left politically, and hence, explains the affiliation with the Trades Unions Congress (TUC) and the Labour Party. Despite, like most industry bodies, being based in London, the MU has 100 local branches throughout the country to try to promote local live music. This is the real advantage of being a member of the MU. The MU believes it is necessary to regain a successful working relationship with publicans and bar owners to allow more local live music with fair pay and conditions. Due to the MU's position as trying to cater for as many different musicians as possible, they have set up many different services.

Legal advice - Advice is given on all the different areas on the music industry. Through other schemes members can also receive limited advice on other legal matters. Rates - The MU negotiates rates or fees with broadcasters, television companies, film and video companies and the record industry. The MU also negotiates or set rates for live engagements.

The problem is that even if the MU negotiates a good rate for its members, record companies use a different country to find musicians, which will do the work for half the price. Debt recovery - The MU official's recover thousands of pounds every year that are owed to musicians. Contract advice - A free advice service on recording, managing and publishing contracts. Career advice - Personal interviews can be booked to look at the artist's own career so far.

Instrument insurance - Competitive instrument insurance can be looked into and arranged for members. Public Liability insurance - This is for performing or teaching in a public place or at home. The limit of the indemnity is lb 10 million. Teachers register - An MU Directory is published with a list of instrumental teachers. Information - The MU produces leaflets on topics such as copyright and contracts. Directories - Annually a free directory for members is produced listing all members.

Standard contracts - For every type of live engagement, a free contract form is supplied. Magazine - An award winning magazine can be sent four times a year to members. The rates of subscription vary according to earnings per year. Here is a table taken from the MU's web site (web 2003) showing the different rates. Subscription Rates 2003 Yearly Earnings From Music Cheque / Credit Card Direct Debit A up to lb 7,500 lb 85.00 lb 78.00 B over lb 7,500 up to lb 15,000 lb 112.00 lb 99.00 C over lb 15,000 up to lb 25,000 lb 200.00 lb 180.00 D over lb 25,000 lb 220.00 lb 198.00 Y Reduced rate for young applicants under the age of 21 and earning lb 7,500 per year and full time students lb 36.00 lb 33.00 The MU annually receives a turnover of lb 4 million and has assets worth lb 8 million. Yet the MU has lost a significant part of its investment and thus losing its power and influence with in the industry.

Being a Trade Union, the MU is always trying to solve little individual disputes rather than being at the forefront of commercial services. The artist / writer would join the MU primarily if the artist could play an instrument and thought that session work and live performances in a backing band were a possibility at some point in their career. The artist / writer may also consider them self as an excellent singer and may see that as a possibility by itself, if so the Equity could be a possible Trade Union to join for the artist side of their career. Equity's main function as a Trade Union is to 'negotiate minimum terms and conditions of employment throughout the entire world of entertainment and to endeavour to ensure these take account of social and economic changes'; . (web 2003). Being a Trade Union, Equity much like the MU is left of centre politically though it is not affiliated with any political parties.

For a musician looking at Equity, they really have to be a professional singer to be allowed to join. Just like many other organisations in the music industry, Equity has set up agreement with its sister unions overseas, in the hope of acting internationally as a force. Equity is comprised of 46 councillors elected by the members for the members. They meet up usually once a month to debate union policy. Below this, Equity has many specialist and geographical Committees ranging from the Concert and Session Singers Committee, the Theatre Designers Committee to the Midlands Area Committee. There are too many councillors to ever really achieve anything as they can never all agree on any one policy.

The lack of census of opinion means that Equity is very hard to operate efficiently and effectively. The services to members Equity offers are as follows: Help and advice An Equity card Legal advice Welfare advice Publications Medical support Royalties and residuals Registers Job information Campaigns Your professional name Insurance Rights, copyright and new media advice Charities Pensions (Opera singers) Discounts Subscriptions to join and become a member of Equity are determined by the previous tax years gross earnings from the applicants professional work. There is also in addition a one off joining payment of lb 25. The current subscription rates for 2003 are taken from Equity's web site (web) and are as follows: Earnings Annual Subscription Nil - lb 6,600 lb 66.00 More than lb 6,600 1% of gross earnings to a maximum subscription of lb 1,750 per year The Incorporated Society of Musicians is aimed primarily at serious musicians (for example teachers and orchestral musicians), generally away from the pop music market. ISM also has a corporate membership currently at approximately 150. The aims of ISM are: To promote music as an art and that of the interest of professional musicians.

To raise the standards in the profession of musicianship. To advice and services to the members, including legal, professional, financial and personal. To join as a professional member, the subscription rate per year is lb 115. This allows the artist / writer to all the free legal and financial services said in the aims but also voting rights in the ISM elections. ISM's main asset is its strong relationship with musicians in education and considers this an important part of the music industry. As the artist running their own record label, is also a writer of music, the Performing Right Society (PRS) would be a collecting society that should be joined.

PRS is a non-profit making organisation, which also collects performing right royalties for its members, who are composers, songwriters, authors, arrangers and publishers of music. PRS will also collect royalty income nationally and internationally due to its reciprocal agreements with sister organisations across the world. In order to allow PRS to complete these functions, PRS demands that the writer assigns 100 percent of their performing right of their songs, to PRS for the life of copyright. This entails performing a work in public and communicating a work to the public, for example broadcasting.

By selling licences of copyright music for the people to use in public, PRS is able to generate revenue. The licence fee can differ depending on certain factors. The factors are whether a box office receipt can be taken, the size of the premises and whether the music is only going to be used as background noise. For broadcasters PRS generally takes a percentage of their advertising revenue, however, in the case of the BBC a blanket licence is given. PRS believe it is important to recognise the balance between accurate distribution and administration costs, PRS have decided to employ a tactic of market research and statistical models to work out which songs are being played. Large broadcasters in T.V. and radio are analysed 100 percent but smaller broadcasters are only analysed for a few random days a year for the stations entire output.

Just like PPL, PRS has the wrong attitude by always trying to cut its costs to please its publisher members rather than pleasing its writer members by gaining a 100 percent analysis of music played in the UK. Currently there are four distribution dates each year however processing sometimes is completed in pieces of 6 months. PRS is under investigation for being inefficient to its members due to old business models and an unchanging philosophy. If the artist / writer had a publishing deal then a recommended split of revenue would be 50/50 percent on royalty income. To take care of the administration costs PRS will take a deduction from the royalties it collects. PRS chooses its policy and administration by a Board of 26, led by a Chairman and two Deputy Chairmen.

There are 22 Non-Executive Directors of which 11 are writers and 11 are publishers, each elected by the members. There are also two Non-Executive Directors who are appointed from outside the music industry, and two Executive Directors. However high earners from PRS do gain extra votes, which can and has caused friction within the society. Approximately 1500 new members join every year and in 2002 the membership topped 37,500. PRS received lb 84.6 million form broadcasting, lb 98 million form public performance and lb 85.8 million from overseas yet only 7 percent of the members received more than lb 10,000 a year. The criteria for a writer to join are that the writer must have had either work played in public, broadcast or performed live.

The benefits for the writer joining are: Collection of payment of UK and international royalties. International royalties are processed within a few weeks of the receipt. From many affiliated overseas societies, no administration charge is subjected. Detailed royalty statements are supplied with the payments. Registration of works and publishing agreements. Up to date web site with many processes available online.

There is a one off fee for writers with no annual subscription of lb 100 plus VAT (lb 117.50). When a copy of a music recording is made, it creates and generates a music royalty, which should be paid to the writer of the piece of music. The Mechanical Copyright Protection Society (MCPS) collects and distributes this royalty, called the Mechanical royalty. MCPS is a non-profit making organisation.

In this case the writer owns the Mechanical right unless the writer achieves a publishing deal with which the right will be assigned to the publisher. For the artist / writer to receive any mechanical royalty, the record label the artist / writer owns, needs to press and release a record. For this to happen, a licence needs to be attained from MCPS for the record label giving details of what is going to be made. This way MCPS can ensure members receive what royalties are due. The scheme most likely to be granted to a new record label run by the artist / writer will be the AP 2 licence as stated earlier in the report. Having supplied all the information about the tracks, if there is nothing for MCPS to claim on then, MCPS will submit the form free of charge and send you a Notification of No Claims (NOC).

If however there is something owned by an MCPS member on the artist / writer's CD, then the artist / writer will be invoiced for the usage. No manufacturing is allowed until the bill outlined earlier on the AP 2 scheme about up front payments on pressing are settled with MCPS. MCPS unusually owns the sound recording in Production Music Libraries where users of music can for a set payment and with no negotiation with a record label, play music contained in these libraries. Due to the fact that the artist / writer is only putting out their own work on their own record label and no one else is making copies of their music, then there is no real immediate need to join MCPS. However as soon as some success is achieved especially if a track is put on a compilation CD, then there is no other automatic way apart from MCPS for the mechanical royalty to be collected. MCPS and its sister organisations across Europe have set up central licensing, where CD's can be manufactured in one country and then distributed all around Europe saving time and money.

Again just like the other collection societies, MCPS has these reciprocal agreements around the world to represent overseas society's repertoire in the UK. The publisher members of MCPS do not like these agreements as it means a cut in the mechanical right is being taken twice from overseas royalties. MCPS is not strictly a members company, as the members do not have any right to vote; therefore MCPS acts more as an agent for its members. The MCPS Board is appointed by the Music Publishers Association (MPA) Council and consists of 4 full PRS writers and 12 publishers. Currently MCPS has approximately 11,000 writers and 4,500 publisher members. MCPS distributed lb 221.4 million in 2002 though most of that money was distributed to the publisher members.

There is a joining fee of lb 50 for both publishers and writers. The benefits of joining are: Safeguarding your copyright. Excellence in the level of service. Processing of royalties quickly and efficiently. Strengthening business while trying to develop new markets. Lobbying for global copyright protection.

Royalty statements with every distribution. Query service for any unpaid mechanical royalties. Publications of information. Online services including MCPS-PRS database.

Low commission rates. Wide spread of income streams for example, T.V., video and ring tones and CD's. Option to retain control over certain types of usage. To increase efficiency, MCPS and PRS have formed an Alliance when it is believed they are representing the same people.

Common elements include membership, works and agreement registration, facilities, financial services and licensing downloads (12 percent of the gross revenue). By joining relevant databases together, time, money and effort can be saved. Though the artist / writer can not join via the current credentials of artist, writer or record label, the artist / writer could sign a publishing deal, and hence, the Music Publishers Association is useful to know about. The MPA represent music publishers in the UK.

MCPS is owned and has its policies watched and effectively controlled by the MPA. Based in London with no regional presence, the MPA has a Board consisting of 15 Pop publishers, 6 standard publishers, Deputy Chair and Chairman. These meetings are often a useful way of networking and receiving inside information before it is released to the industry about future projects. Currently the MPA has approximately 200 members each paying according to turnover and size. The bigger and more profitable the publisher is, the more subscription is paid annually and the larger number of votes assigned. Thus the major publishers dominate the MPA, though unlike record labels, major and independent publisher's interests are far more in common.

The MPA struggles to meet its costs every year due to a high wage and consultancy bill, though the MPA does charge MCPS lb 100,000 annually as a management cost. The main issues concerning and services offered by the MPA are: MPA represent the interests of music publishers to the government, the music industry, the media and the public. MPA oversee International Standard Music Numbers (ISMN's) MPA establish seminars, training and social events MPA promote better understanding and respect of the value of music and copyright. Especially in education and to help with music for the impaired.

MPA produce and sell a catalogue of printed music with over 250,000 entries MPA realise a changing of the trading environment, online shopping. The British Academy of Composers and Songwriters (BACS) is a UK trade association for music writers with approximately 2,500 active members and many associate / student members. It is run by an elected Council with 3 Committees representing the different agendas of the 3 original associations that formed BACS in 1997. Though this organisations have joined together, the fact of the 3 different Committees clearly show they still have divided interests but try to keep I within.

In total BACS employs 6 staff full time. BACS has 5 clear aims and purpose, and they are: Protect and increase the value of copyright. Actively campaign to raise the profile of composers and songwriters. Provide member services and benefits. Provide additional support for members starting their careers Pay tribute to UK talent in songwriting and composing. The services and benefits BACS has to offer are as follows: A legal and business advice service is given showing example of good practise, standard contracts and copyright matters Special workshops and seminars Publication of 'the works'; magazine is free to all members.

Free entry and webpage in the BACS register. Collaborators's ervice allows contact with potential writing partners. Discounts on competitions, recording studios and travel expenses. Insurance packages are available to members. For the artist / writer to join, lb 85 plus VAT per annum would need to be paid for a full professional membership if already a member of PRS, which the artist / writer will be. Despite receiving some money from subscriptions, BACS is almost entirely reliant on PRS through sponsorship (lb 100,000 for the Ivor Novello Award) and by collecting for the members of BACS that are also a member of PRS.

Both PRS and MCPS (sponsors the Gold Badge Award for lb 25,000) like BACS being on the edge financially and need the input of their money, so they have a powerful bargaining tool when negotiating. As the artist / writer could well be a member of the PRS, MCPS or BACS, the British Music Rights is an organisation of relevance, because along with the MPA, the previous trade associations founded it in 1995. Having said that, the BMR is effectively controlled by PRS and MCPS as they primarily fund the organisation. The different associations and societies vote for a Board of 8 and a Chairman. BMR's main aims and purpose are as follows: Greater awareness, official and public of its members interests and activities. An understanding of rights and rewards for creativity and the value it has to the UK economy.

Awareness of the impact of new technologies on its members, policy and legislation. BMR wanted to introduce new, world wide business models for collection societies and publishers. Publishers via the MPA however did not like the idea, as publishers already had a successful global network and wanted to stay ahead of the collection societies in this respect. However all the members do combine and agree to allow the BMR to be a member of the Music Business Forum (MBF) and the AACP to help improve British business in music. The BMR's functions and benefits to its members, PRS, MCPS, BACS and the MPA are as follows: To make sure the British Government and their European counterparts allow British business to be competitive.

Copyright to be enforced globally. Music education is improved in schools. Promote the music agenda. Monitor e-commerce legislation Undertake research projects.

Organise and participate in events such as training, seminars, trade fairs and education. Outside of the UK, there are international organisations, which deal writers and intellectual property. The World Intellectual Property Organisation, (WIPO) a United Nations Special Agency, is a forum to help define intellectual property. Following conventions such as Berne and Rome, WIPO administers and converts them into treaties for nations to commit to.

The Confederation Internationale des Societies des d'Auteur et Composite ur (CISAC) promotes reciprocal representation and the Santiago / Barcelona agreements concerning Internet licences. CISAC is trying to protect the writer by assisting developing societies. The Bureau International des societies grant les droits d'Enresgitrement et de reproduction Meca nique (BIEM) promotes the Standard BIEM contract and Central Licensing Audits. The International Federation of Phonographic Industries (IFPI) co-ordinates anti piracy activities and lobbies for legislation change.