It has been announced today that both Soundcloud and PRS for Music have come to an agreement, and will no longer be going to court.
Earlier this year, PRS for Music decided it was going to sue Soundcloud on behalf of its artists for unpaid royalties.
PRS is tasked with collecting performance rights and mechanical rights of about ten million musical works on behalf of its songwriters, composers and publisher members.
“On behalf of our members, I am pleased that we have been able to reach a settlement with SoundCloud without extended legal proceedings,” explained Robert Ashcroft, Chief Executive of PRS for Music. “This ends over five years of discussions on the licensing requirements for the platform, resulting in a licence under which our members are fairly rewarded for the use of their music.
“The safe harbours in current legislation still present ambiguity, and obstruct the efficient licensing of online services, but our agreement with SoundCloud is a step in the right direction towards a more level playing field for the online marketplace,” he added.
“Many of our members love the SoundCloud service and I greatly appreciate their management’s willingness to work with us in the way they have.”
Alexander Ljung, founder and CEO of SoundCloud, said: “SoundCloud is a platform by creators, for creators; we’re working hard to create a platform where all creators can be paid for their work, and already have deals in place with thousands of copyright owners.
“PRS for Music is also fully committed to creators, and we’re pleased to have reached an agreement that will expand revenue opportunities, improve the accuracy of royalty distributions, and launch new services for our 175 million monthly active listeners on SoundCloud in 2016.”
2015 has been a difficult time for Soundcloud – with it trying to satisfy both major labels and its users who’ve pumped in millions into the company via subscription fees – but with today’s news Soundcloud can go into the New Year without a messy court case hanging over their head.