ZipTracker: Drummer Challenge

Hi this is ZipLaw! This is our ZipTracker Newsletter where we run through the top court cases and deals law firms acted on so you can use them to stand out in applications. All of them (and more) are added to our ZipTracker database each week.

Are you new here? Get free emails to your inbox.

Here’s what we’re serving today:

• Court cases involving: Penningtons Manches Cooper, Kingsley Napley, Macarlanes
• Deals involving: Shearman & Sterling, Ashurst, Clifford Chance and DLA Piper

The following deadlines are coming up! Use ZipTracker to stand out in your applications (we have deals & court cases for all of them) 🙌

• 📅 Penningtons Manches Cooper (TC) - 12 April
• 📅 Shearman & Sterling (Open Day) - 14 April
• 📅 Kingsley Napley (TC) - 15 April
• 📅 Clifford Chance (ACCESS) - 18 April
• 📅 Ashurst (Virtual First Year Insight Day) - 26 April

💡Did you know? Our ZipTracker reports come with our analysis of the key points to discuss, which clients law firms advised, and an in-depth look at the key departments work on each case or deal.

Blur Drummer vs Royalties

In Short: Dave Rowntree, drummer of the iconic Britpop band Blur, leads a legal challenge against the Performing Rights Society (PRS), accusing it of unfairly distributing royalties, particularly those known as "black box" income, to the detriment of songwriters.

What’s Going On? The crux of the matter lies in how PRS, the organization responsible for collecting and distributing royalties from public performances in the UK, handles unallocated funds, often due to data discrepancies like misspelled artist names.

What Are the Parties Arguing?

• Dave Rowntree argues that PRS's opaque practices around "black box" royalties systematically disadvantage songwriters, diverting funds rightfully theirs to publishers due to fewer data issues on the latter's side. This, he claims, contravenes fair competition laws.
• PRS's Defence: PRS denies any wrongdoing, asserting that its policies and operations are grossly misrepresented in the claims.

Key Points to Discuss:

1. The "Black Box" Conundrum: At the heart of this legal tussle is the enigmatic "black box" income – royalties that fail to find their rightful recipients due to clerical or informational errors. This case could shine a spotlight on the necessity for more transparent and efficient systems to ensure these royalties reach their rightful owners, potentially setting a precedent for how similar organizations worldwide handle such funds.
2. Competition Law and Creative Industries: This case tests the waters of applying competition law principles within the creative sectors, particularly in royalty distribution. It raises critical questions about the balance of power between creators and publishers and how laws can ensure equitable treatment in an industry known for its complexity and nuance.
3. Implications for PRS and Similar Societies: Depending on the outcome, this challenge could force PRS and similar rights organizations to overhaul their royalty distribution mechanisms. It could lead to more stringent data management requirements and a re-evaluation of how unallocated funds are handled, ensuring a fairer system for songwriters.

Which Law Firms are advising on this? (and what work did they do?)