PRS for Music Takes Live Nation to Court Over VIP Ticket Royalty Dispute
PRS for Music has initiated legal action against Live Nation, claiming the promoter has failed to properly account for and pay royalties from VIP ticket package revenues.
The dispute centers on how revenue from VIP packages should be calculated for royalty payments. PRS currently charges promoters and venues 4% of gross box office receipts for popular concerts, which is then distributed to rights holders based on performance duration.
Blonde woman at PRS for Music
The key contention lies in determining which VIP package components should be included in gross receipt calculations:
- Components with a "performance nexus" (like pre-show performances and special viewing areas) should be fully included
- Non-musical elements (such as merchandise, meet-and-greets, and refreshments) should be excluded
This dispute has gained significance as Live Nation reports substantial growth in VIP revenues:
- Major festival VIP ticket premium revenue increased over 20% in Q3
- Amphitheater VIP club revenue rose 19%
PRS for Music emphasizes the need for "full and accurate reporting of all ticket types," including VIP tickets and bundled packages. The organization claims Live Nation has shown "disregard" for existing licensing requirements.
The case, filed in the U.K. High Court's Intellectual Property division, remains ongoing, with Live Nation yet to provide public comment on the allegations.