Photo: Complete Music Update
The United Kingdom Court of Appeal has officially dismissed a high profile class action lawsuit brought against music licensing organization PRS by Blur drummer Dave Rowntree. The ruling upholds an earlier decision by the Competition Appeal Tribunal to strike out the case, formally concluding a bitter legal battle that has been active since 2022. The judgment confirms that the distribution methods used by the society are completely lawful under existing competition regulations.
The multi year legal conflict centered on unmatched black box royalties, which represent collected income that cannot be tied to a specific songwriter or publisher due to missing data. PRS handles these unallocated funds by distributing them on a pro rata basis, matching the exact proportions of its identified royalty distributions. Rowntree argued that this specific system inherently favors major music publishers at the direct expense of independent songwriters, claiming that individual writer details are far more likely to be lost or transcribed incorrectly.
While the panel of judges acknowledged that songwriter royalties might disproportionately make up the unmatched pool, they rejected the lawsuit because the legal team could not present a plausible alternative distribution model. The court found that because the underlying tracking data does not exist, there is no realistic basis for a fairer counterfactual distribution system. The judiciary also dismissed the idea that songwriters represent a monolithic class, noting that individual listening volumes vary wildly across the membership base. Furthermore, the court found no fault with the manual data matching processes executed by PRS, which actively attempts to reconcile individual royalties down to a minimum threshold of three pounds.
Despite the total legal victory, PRS remains facing a massive financial shortfall. Although the society spent two point six million pounds defending the action, a prior regulatory costs assessment capped their recoverable legal expenses at seven hundred fifty thousand pounds. This leaves the creator owned organization approximately one point eight million pounds out of pocket, a deficit that must be absorbed through internal commission fees.
