“8. The unfairness arises because PRS pays royalties to publishers which likely belong to songwriters and should be paid to them. More specifically the claim relates to the portion of performing rights royalties collected by PRS which cannot be matched with the correct songwriter or publisher because of inter alia incomplete reporting by licensees or data issues, including on the PRS database. While the musical work may be identified, failings frequently arise as to the identity of a songwriter, and much less frequently as to the publisher. For example, the songwriter’s name may have been misspelt. These unmatched royalties are described colloquially in the industry as “Black Box”. 9. The majority of Black Box royalties held by PRS belong to writers because (a) the vast majority of the 165,000 PRS members are songwriters and there will therefore be more reporting and data issues applicable to songwriters; (b) PRS collects royalties on behalf of songwriters in respect of use worldwide, but, by contrast, tends to collect royalties on behalf of publishers only in respect of use in the United Kingdom. Entities abroad (such as foreign CMOs) tend to pay publishers direct whereas they account to PRS for the songwriter share of the royalties collected abroad. 10. Thus reporting and data issues are more likely to apply to the songwriters and PRS administers a large proportion of royalties belonging to songwriters. Its likely therefore that the majority of black box royalties are songwriter royalties.”
“45.1. The number of songwriter members is far greater than the number of publishers. Of the 165,000 PRS members, well in excess of 160,000 members are likely to be songwriters. Accordingly, the reporting and data defects will more likely apply to a songwriter than to a publisher. There are only several large publishers in the United Kingdom, and they conclude many hundreds or thousands of agreements with individual songwriters. 45.2. Most of the royalties processed by PRS relate to songwriters. As explained above in the case of public performances outside the United Kingdom, publisher members typically choose to be paid their share of the royalty outside of the United Kingdom. Publishers also tend to be paid direct in respect of multi-territorial online licensing. 45.3. When staff at PRS input musical works and interested party data into PRS’s databases, they are more likely to transcribe publisher details correctly as there is more familiarity with the names of publishers. 45.4. Publishers are more likely to verify the accuracy of a royalty payment than a songwriter. Publishers have significant resources to check whether their royalty payments are correct and to conduct royalty payment audits and, where necessary, question the amount of a royalty payment with PRS.”
“61. Songwriters are required to assign their performing rights to PRS which has special responsibility to ensure that songwriter royalties are properly allocated and the right balance is struck between the freedom of writers to dispose of their works and the effective management of their rights by PRS. In addition, although PRS is not responsible for actually distributing the entirety of Black Box preforming rights royalties from the exploitation of PRS repertoire (because, for example, such royalties are paid direct to publishers by foreign CMOs and other entities), PRS is nevertheless required to ensure that publisher and songwriter members receiver their equitable allocation of the overall Black Box royalties. 62. In breach of this special responsibility PRS is imposing unfair trading terms on its songwriter members through its policies that permit the distribution to publishers of performing rights royalties owed to PRS songwriter members. Moreover, the distribution policies of PRS and their implementation are not equitable since they require songwriters to dispose of their works without entitling them to obtain the full royalties owing to them. 63. To the extent that songwriter royalties cannot be matched to the correct songwriter – hence the Black Box – there is no objective reason why the unmatched royalties should not be allocated to the songwriters as a class. There is no objective reason why any portion of unmatched songwriter royalties should be paid to publishers as a class.”
“47A Proceedings before the Tribunal: claims for damages etc. (1) A person may make a claim to which this section applies in proceedings before the Tribunal, subject to the provisions of this Act and Tribunal rules. (2) This section applies to a claim of a kind specified in subsection (3) which a person who has suffered loss or damage may make in civil proceedings brought in any part of the United Kingdom in respect of an infringement decision or an alleged infringement of— (a) the Chapter I prohibition, or (b) the Chapter II prohibition. (3) The claims are— (a) a claim for damages; (b) any other claim for a sum of money; (c) in proceedings in England and Wales or Northern Ireland, a claim for an injunction. …” “47B Collective proceedings before the Tribunal Subject to the provisions of this Act and Tribunal rules, proceedings may be brought before the Tribunal combining two or more claims to which section 47A applies (“collective proceedings”). …”
“79. We have no doubt that abuse is a broad concept, and that the concept of exploitative abuse by “unfair” conduct should develop to reflect new patterns of commerce. However, that concept is not unlimited. Competition law is not a general law of consumer protection. And where the allegations concern systemic conduct, the fact that the dominant company could have carried out a particular aspect of its business better, or in a different way that would have benefited consumers, does not mean that this conduct crosses the line to constitute abuse …” 80. It must be emphasised that abuse of dominance is prohibited and therefore unlawful. Such conduct renders a dominant company liable to potentially very significant fines, and is classified as quasi-criminal for the purpose ofArt 6 of the European Convention on Human Rights . That is why the Tribunal has held that “strong and compelling evidence” is required to establish abuse: Napp Pharmaceutical Holdings Ltd v DGFT[2002] CAT 1 at [109]. The competition law prohibition of abuse does not create an obligation on the dominant company to organise or conduct its business so as to achieve the best outcome for its customers, or a fortiori for a sub-group of its customers …”