In today's CMU Daily: TikTok EU Copyright Directive safe harbour ruling in Germany welcomed by music industry, could have implications for UMG x TikTok spat

Also today: Arts Council says everyone's got the wrong end of the stick and it doesn't actually want to stifle free speech or take political protest out of the arts: just carry out a comprehensive risk assessment before you kick off, and make sure you're not going to offend anyone

Approved: Lambrini Girls

One Liners: Sleep Token sign to RCA; Transgressive expands; Kobalt updates client portal; Boardmasters ups capacity; Richard Antwi Scholarship opens; BRITs performers; Northern Music Awards nominations; Kanye West and Ty Dolla $ign v Donna Summer; new music from Idles, Ethel Cain and Kittie

Plus: MU members reluctantly "and with heavy hearts" accept ENO orchestra deal; and if only those pesky students would drink more, nightclubs wouldn't be in such a state

Music industry welcomes German ruling holding TikTok liable for unlicensed content

The music industry has welcomed a recent ruling in the German courts involving TikTok that enforces changes to the copyright safe harbour made under the 2019 EU Copyright Directive. The ruling means TikTok is liable for unlicensed content uploaded by its users because it failed to make the “necessary best efforts” to secure a licence from the relevant copyright owner.

The case is particularly interesting given the recent breakdown of licensing negotiations between TikTok and Universal Music, because it clarifies European copyright law in a way that could have consequences for TikTok if it can’t agree a new deal with the major music company.

TikTok was sued by Berlin-based film distributor Nikita Ventures. Its legal representatives at law firm Lausen Rechtsanwälte explain, "The court decided that TikTok is liable for the unlicensed use of content. The decision means that TikTok must now disclose how often users streamed the unlicensed content, how often users uploaded the unlicensed content, and what revenue and profits TikTok generated from the unlicensed use. [The court also] found that TikTok must pay damages for the unlicensed use and refrain from the unlicensed use".

The music industry lobbied hard in the mid-2010s to amend the copyright safe harbour in Europe. The safe harbour helps internet companies avoid liability if users upload content to their servers which infringes copyright. So long as the platform has a system to remove infringing content when made aware of it by a copyright owner via a takedown notice, then the platform can’t be held liable for copyright infringement.

Music companies argued that platforms including YouTube were exploiting the safe harbour to get unfairly preferential rates when negotiating licensing deals. This was because if a music rightsholder didn’t sign up to a deal it would be saddled with the burden of monitoring the platform and issuing endless takedown notices.

Most music companies stressed that they wanted to license user-upload platforms, but they felt they were hindered in licensing negotiations by inappropriate use of the safe harbour. Such uses had not been anticipated when the safe harbour was introduced into law in the 1990s, when lawmakers were mainly considering internet service providers and server-hosting companies.

The European Copyright Directive provided an opportunity to amend the safe harbour. In article seventeen of the directive extra obligations were introduced for user-upload platforms which rely on safe harbour protection. That includes the provision that platforms must make ‘best efforts’ to secure a licensing deal for any third party content uploaded to their servers.

Those obligations subsequently became part of German copyright law and formed a key part of the Nikita Ventures case against TikTok. The court said that the video-sharing platform was liable for unlicensed content controlled by the film company - and could not rely on the safe harbour - because it had failed to make ‘best efforts’ to obtain a licence.

There's more to this story... click through below and sign into CMU to read the industry response and full analysis from CMU's Chris Cooke

Union Chapel // Visitor Engagement Coordinator (London)

AEG Presents // Project Manager (London)

Live Music Booker // The Halls (Wolverhampton)

Music Declares Emergency // Directors' Assistant (London)

The Royal Albert Hall // Programming Manager, Hire (London)

The Royal Albert Hall // Engagement Executive (London)

ICE // Netsuite (ERP), Functionality/System Tester (London)

Horizon is CMU's new weekly newsletter - published each Friday - that brings you a hand-picked selection of early-stage career opportunities from across the music industry.

Whether you're looking for your first job in music or you're ready to take a step up, Horizon is here to help you find your dream job faster.

👉 Click through to see the current selection.

ONE LINERS

Kanye West and Ty Dolla $ign, Sleep Token, BRIT Awards + more

DEALS

Sleep Token have signed a new record deal with Sony Music’s RCA. Their first three albums were released on Universal’s Spinefarm. The band recently announced a UK arena tour in November, adding extra dates at the First Direct Arena in Leeds and O2 Arena in London at the beginning of December due to demand.

APPOINTMENTS

UK indie label Transgressive Records has expanded into North America with a New York office headed up by Jack Hedges. The move also sees Hedges’ Canvasback label become part of Transgressive. “Transgressive exemplifies the values of excellence, artistry and integrity that has defined Canvasback for the last seventeen years and there is no one I trust more to help carry that legacy into the future together”, he says. “They are truly a world-class label and I’m inspired and humbled to be at the ground floor of building out a global operation”.

PUBLISHING

Kobalt has launched the latest version of its client portal, offering - it says - “unprecedented levels of accuracy, transparency and insight” to its royalty reporting. “The royalty collection flow is a big blindspot for songwriters and rightsholders, and unlocking this data has the potential for material impact, from a rising songwriter to the biggest acts in the world”, says CEO Laurent Hubert. “We will continue to push new boundaries to ensure creators have unparalleled access to their data and continuously empower them”.

LIVE BUSINESS

The Boardmasters festival in Cornwall has received council approval to increase its capacity from 53,000 to 58,000 this year. Plans to expand the event were first announced last November. Its 2024 edition is set to take place on 7-11 Aug with headline performances from Stormzy, Chase & Status and Sam Fender.

EDUCATION

The Richard Antwi Scholarship has announced that it is opening up for applications for a seventh and final time. The initiative supports people from marginalised communities by providing financial support to study for the Music Business Management MA course at University Of Westminster. More information here.

AWARDS

Jungle and Rema have been announced to perform at this year’s BRIT Awards next month. Yinka Bokinni and Jack Saunders have also been confirmed to present The BRITs’ Red Carpet on ITV2 and The BRITs’ Aftershow on ITVX. It all takes place on 2 Mar.

The nominations have been announced for the inaugural Nordoff And Robbins Northern Music Awards, which is due to take place at Manchester’s Albert Hall on 23 Apr. Among those up for prizes are The Courteeners, The K’s, English Teacher and Antony Szmierek, who will also perform. Set to receive the Northern Icon award is Lisa Stansfield. More info here.

RELEASES

Kanye West and Ty Dolla $ign’s ‘Good (Don’t Die)’ has been removed from Spotify following a complaint from the Donna Summer estate over its apparent use of the song ‘I Feel Love’. The track from the two rappers’ ‘Vultures 1’ album remains on other streaming services. Last week Ozzy Osbourne also hit out at the album’s use of an uncleared Black Sabbath sample.

Idles have released the video for recent single ‘Grace’, which uses AI to rework Coldplay’s ‘Yellow’ video to make Chris Martin appear to sing the Idles song instead. Martin not only approved the use of the video but apparently provided assistance in making it happen.

Ethel Cain has released new song ‘من النهر’, which translates to ‘From The River’, in support of Palestine.

Kittie have released their first new song for thirteen years, ‘Eyes Wide Open’. The band recently signed a new record deal with Sumerian Records.

Approved: Lambrini Girls

Lambrini Girls channel raw energy and defiance. Hailing from Brighton, the duo comprises vocalist and guitarist Phoebe Lunny, bassist Lilly Macieira, and drummer Banksy*. Exemplifying a new wave of feminist punk, they articulate contemporary struggles, demanding change.

Following their debut EP 'You’re Welcome’, the band have returned with the new single 'God’s Country' via City Slang. In the accompanying video, self-filmed around London, the band juxtaposes scenes outside Buckingham Palace with statements addressing poverty in the UK.

The track stands as a critique of the government, questioning the idea of 'Great Britain' and confronting unchecked nationalism. The band explain, “‘God’s Country’ is our long, overdue call-out of the government and rise of the far right. We wrote this a few months back, when the political landscape had evidently reached a global boiling point”.

“Great Britain. Think colonial, shithole, chunk of land. Thriving off unhinged nationalism, fed to us by the right red hand of unelected prime ministers”.

“Despite this”, they add, “we have the audacity to call our country ‘Great’. So we ask you, ‘Are you sure?’ We could deep dive into inspirations and influences but the song’s about politics, not us. We hope the song speaks for itself. Rishi, Cameron, Cummings, Starmer - you’re all on our shitlist”.

🎧 Watch / Listen to 'God's Country' on YouTube

*Not that Banksy.

Arts Council says free speech and controversy is fine, but please follow a detailed risk assessment first

Arts Council England has issued a statement about a recent update to its 'relationship framework policies' that amends guidance for organisations it funds around 'reputation risk'. That, the updated policy states, includes the reputation risk of political statements made "not just by the organisation and its decisions but also by staff and other individuals associated with the organisation acting in a personal capacity".

The changes have prompted further debate about the relationship between politically active creators and government funding for the arts, following the news hip hop group Kneecap had been blocked from receiving export support because of the politics of their output.

On the updated ACE policies, Marcus Berdaut from theatre company The Upsetters wrote on X, "Not only are they trying to silence organisations but also people operating in a personal capacity too". Following a report by Arts Professional, others in the creative community have also argued that the new ACE guidance - and especially the reference to individuals speaking out in a personal capacity - is basically a restriction of free speech.

In a list of the kinds of things that might cause reputation concerns, ACE identifies any “activity that might be considered overtly political or activist and goes beyond your company’s core purpose and partnerships with organisations that might be perceived as being in conflict with the purposes of public funding of culture".

In its statement, ACE insists that "our guidance does not seek to stop any artist or organisation from making the art they want to make, or speaking out in any way they wish – including in ways that challenge institutions and authorities”.

“The guidance does, however, set out a series of steps for organisations to go through, to ensure that if they, or people associated with them, are planning activity that might be viewed as controversial, they have thought through, and so far as possible mitigated, the risk to themselves and crucially to their staff and to the communities they serve".

"We recognise the specific concern that’s been raised on social media around references in the updated relationship framework to individuals, especially artists", it goes on.

"Again, to be absolutely clear, we fully respect and defend the rights of individual artists to freedom of expression, political or otherwise. However, in practice, we understand that some individual artists – for example, Artistic Directors – are strongly associated with the organisations for whom they work, and as a result, their personal positions may be taken to be those of the wider organisation".

"Therefore, if individuals working in public-facing positions in cultural organisations are planning to undertake activity, even in a personal capacity, that might be deemed controversial, the guidance advises that they discuss this with their board, in order to agree a plan to mitigate any risks that might arise. Once again, such decisions are matters for organisations and their boards or leadership groups, not for the Arts Council".

Both the updated policy and the new ACE statement insists that the funding organisation champions freedom of expression. Explaining the rationale behind the policy update, it adds, "The intention of the refreshed relationship framework is not to prevent individuals from expressing their political views, but to support artists and organisations with tools to ensure that this is done in a such a way that it does not result in unintended consequences, or distress for others associated with the organisation".

With Kneecap, it was funding from the government backed Music Export Growth Scheme that was blocked by the Department Of Business & Trade because of the politics of the group’s music, in particular their support for a united Ireland.

A spokesperson for the government department said they did not want to hand taxpayers' money "to people that oppose the United Kingdom itself". The group are now pursuing legal action against the government in relation to the intervention.

Setlist Podcast: AI developments cause celebration and concern

In this week's Setlist Podcast: Chris Cooke and Andy Malt discuss new developments on AI in the EU and UK that have given the music industry cause for both celebration and concern, and the commercial radio industry's anger as BBC Radio looks to give music fans more choice.

🎧 Click here to listen - or search for 'Setlist Podcast' wherever you normally listen

Musicians' Union reluctantly reaches deal with English National Opera over orchestra cutbacks

The UK's Musicians' Union has reached an agreement with the English National Opera in relation to its orchestra members. While this means that plans for strike action this month have been called off, the new deal has been “accepted with heavy hearts”.

The union's General Secretary Naomi Pohl says “we are pleased to have reached an agreement with ENO for the orchestra", but adds that it's a "deal that our members have accepted with heavy hearts. It was clear that the current Arts Council England funding package [for ENO] and instruction to move out of London by 2029 did not provide for full-time jobs for ENO's performers at the present time".

“This is a tragedy and we are worried about how our members will make ends meet over the next couple of transition years for the company", she adds. "Our deal has focused on the best package achievable to try to keep the orchestra together".

ENO management announced plans last year to make its orchestra, music staff and chorus members redundant, moves prompted by changes to its funding. Most of those people would then be reemployed, but only for six months of the year, while some orchestra members have been offered only ad hoc freelance work.

In December, MU members voted to strike over the plans, with chorus members - represented by the union Equity - also backing strike action last month. That action was due to begin at the start of this month, but was delayed while union talks continued.

Under the deal that has now been agreed, all current orchestra members will be offered seven months of guaranteed work.

"The musicians want to make it clear that they have voted for the package because they want to see the company and orchestra continue to make as much opera as possible”, says a statement from the MU. “Our members - who will be made redundant and then rehired as part of the process - are also clear that they should be on full time contracts and ENO should be performing opera with its artistic forces year-round".

Regarding the other ENO employees affected by the changes, the union adds, "MU members in the music staff have agreed to an offer in principle and are in the process of confirming details with ENO management. We send our solidarity to Equity as they work through the final details of their offer in the coming days".

The MU has also made some demands of the UK government to help its members impacted by the changes at the ENO, and more generally.

That includes to "provide specific funding for touring to cover increasing cost; make the orchestral and theatre tax relief extensions permanent; write off or delay repayment of COVID recovery loans; and reverse [former Culture Secretary] Nadine Dorries’ instruction to Arts Council England that led to English National Opera being asked to relocate".

NTIA says nightlife faces cultural crisis after 400 club closures since 2020

The Night Time Industries Association has published its latest stats about closures in the UK clubbing sector, reporting that 396 nightclubs have closed down since the start of the COVID pandemic in March 2020. This constitutes 31% of the market, says the trade group, and the impacts go beyond economic repercussions and represent “a cultural crisis endangering the vibrancy and diversity of our nightlife".

Urgent government support is needed to halt this trend, argues NTIA boss Michael Kill, saying that this should start with a VAT cut for the sector. “The marginalisation of nightlife businesses has left them feeling neglected, questioning the government's motive and with limited avenues for survival", he says. "As we navigate recovery, it's imperative that policymakers acknowledge the vital role of these establishments and provide the support they urgently need".

Like grassroots music venues, and independent festivals, nightclubs have faced various challenges since the end of the COVID lockdowns, including surging running costs and the impact of the cost of living crisis.

Rekom UK - the largest operator of nightclubs in the UK, which called in the administrators last month and has since announced the closure of seventeen venues - has also cited changes in the student market, with students traditionally being key customers for midweek trade.

Changes within the student market are partly the result of the wider cost of living crisis, with many students having less money to spend on socialising, and putting more hours into part-time work to cover living costs, reducing the time available for going out.

Rekom boss Peter Marks spoke to the BBC this week, confirming that students are going out later and spending less, while the costs of running clubs is increasing.

Referencing a recent visit to his company's club in Leeds, he added, "I walked around between 7pm and 11pm, and there were no more than 200 people out in the city. Two years before, it would have been really quite busy and buzzing".

There are other factors impacting on how students spend money on entertainment, however. The BBC report also notes research that suggests young people today generally drink less alcohol, which impacts on where they choose to socialise and how much they will spend at the bar. The BBC also quotes retail analyst Catherine Shuttleworth who focuses on increased choice and the long term impact of the lockdowns on younger consumers.

"There are bars with darts and golf, many more food options and lots of pop up stuff - especially in summer", she says. And "the behaviour of young people has also changed since the pandemic, with those who turned eighteen in lockdown not getting into the habit of going out clubbing".

Rekom also backs the NTIA's call for more government support for the nighttime sector, in particular via a VAT cut. Kill adds that any government support "must be targeted, transparent and substantial to enable businesses to withstand the ongoing challenges and emerge resilient".

"The NTIA stands prepared to collaborate with policymakers to devise effective solutions that safeguard the future of our nightclubs and preserve their crucial role in our cultural heritage”, he concludes. “We implore the government to heed our urgent plea and act decisively to prevent irreversible losses within the nighttime economy".