Music

CMS provides contractual, regulatory and copyright law advice connected to both transactions and disputes to clients across the music sector. We have been at the cutting edge of digital media developments for over 30 years, assisting clients launching new and innovative services across a range of technologies as the sector has evolved. 

CMS has particular expertise in the licensing of music rights (both individually and collectively) and has represented parties in leading UK Copyright Tribunal cases involving the licensing of music for use in CDs, DVDs, online and mobile music, broadcast and on-demand television. We have pioneered the establishment of licensing models for other types of music use, including in various aspects of the leisure sector.

Our clients include broadcasters and other content aggregators and distributors, record companies, pure-play digital content businesses and mobile operators as well as those companies that invest in the sector.

Recently, we have seen:

• The growth of AI: AI is set to have a profound impact on the music industry, from providing new ways of generating music, to potential regulatory issues around how AI is trained and the impact on existing music. 
• Music as an asset class and rights consolidation:  While the core music industry has consolidated in recent years, there has been an increase in external groups seeking to purchase music rights as an asset class due to the relative certainty of royalty flows and other attractive returns (especially during the recent period of lower interest rates). Both public and private funds purchasing music rights (and supported by lending) require a combination of strong M&A experience and a deep understanding of the music industry to ensure that their funding security adequately reflects the value of the rights being purchased.   
• The re-emergence of live events and the importance of sustainability: Recent years have seen a strong uptick in live music events as the Covid-19 pandemic has receded. However, this resurgence has also seen an increasing focus on ensuring that events are held in the most sustainable way possible. Measures introduced include the use of renewable energy, more reusable products and other innovative solutions. Measuring the impact of live events (and knowing how best to tackle it as a result) is key to success.  

Highlights of our recent experience:

• Warner Music Group in relation to a range of matters including acquisitions, such as the landmark acquisition of the Parlophone Label Group, comprising the Parlophone and Chrysalis labels and other former EMI recorded music operations. 
• ITV on its music rights negotiations over a number of renewal cycles, including a Copyright Tribunal reference challenging the terms on which the Performing Right Society and Mechanical-Copyright Protection Society license ITV’s use of music in its programmes / services.
• Lenders to the music publisher Kobalt Music Group, which built a portfolio that was sold for $1.1 billion in 2021.  The catalogues include over 62,000 music publishing copyrights, with songs by the Weeknd, Lorde and many more artists across multiple genres. The CMS team acted for the funders who provided capital to help the company build on its mission to “give artists, songwriters, musicians, labels and publishers the freedom and transparency they needed to build their careers”.