Living Wage for Musicians Act Returns, Court Dismisses Lawsuit Against PRS, and Cox Fights Infringement Liability Ruling
How The Music Business Works - Issue #27
September 4, 2025
Welcome back to How The Music Business Works!
Big policy moves, courtroom battles, and market shifts are shaping the music industry this week.
In the U.S., Rep. Rashida Tlaib is reintroducing the Living Wage for Musicians Act to push for fairer streaming payouts, while Cox Communications takes its piracy liability fight to the Supreme Court. Meanwhile, ICMP has accused major AI firms of “illegally” scraping music on a massive scale.
Over in the UK, PRS shut down Dave Rowntree’s black box lawsuit, and in Italy, the market is booming with double-digit streaming growth and vinyl sales on the rise.
On to the news…
Living Wage for Musicians Act is Back
U.S. Rep. Rashida Tlaib will reintroduce the Living Wage for Musicians Act on September 29, with strong backing from the United Musicians and Allied Workers union. The bill proposes a new “Artist Compensation Royalty Fund” financed by a 50% surcharge on music streaming subscriptions and a 10% levy on ad revenues, aiming to guarantee artists at least one cent per stream. Payouts would go directly to featured and non-featured performers, capped at one million streams per track monthly. While New York City’s council has already voiced support, streaming platforms and major rights holders are expected to resist due to higher subscription costs and reduced control over royalty flows.
Court Dismisses Dave Rowntree’s Black Box Lawsuit Against PRS
PRS has successfully fended off a class action lawsuit from Blur drummer Dave Rowntree over the distribution of black box royalties. The UK Competition Appeal Tribunal dismissed the case, ruling it ineligible for collective proceedings and agreeing with PRS’s request to strike it out. Judges suggested Rowntree should have pursued the issue through PRS’s internal systems rather than costly litigation, which they warned could have diverted members’ royalties to legal fees and funders charging “mind-boggling” interest. While the tribunal acknowledged it’s arguable that current rules disadvantage songwriters, PRS said the ruling vindicates its policies and welcomed the reminder that internal mechanisms exist for members to raise concerns.
Cox Fires Back Against Lower Court Infringement Liability Ruling
Cox Communications has filed its opening brief with the U.S. Supreme Court in its long-running battle with major record labels over alleged user piracy. The ISP is appealing a $1 billion jury verdict, overturned earlier this year but still unresolved, arguing it took extensive steps to curb infringement, including warnings and suspensions, and that forcing mass account terminations would unfairly cut off innocent users. Cox warned that holding ISPs liable for customer behavior could set a dangerous precedent, likening it to blaming landlords or utility companies for tenants’ or customers’ misconduct. The Supreme Court will now weigh in on the broader question of ISP liability, with amicus briefs due September 5.
AI Firms Are “Illegally” Scraping Music, According to New Investigation
A new investigation by the International Confederation of Music Publishers (ICMP) claims major AI companies are “illegally” using copyrighted music to train their models. After gathering over two years of evidence from registries, leaked data, and AI research, ICMP says works by artists like The Beatles, Beyoncé, The Weeknd, and Gorillaz have been scraped from platforms such as YouTube without licenses. Companies named include Google, Anthropic, Microsoft, Meta, and X, whose Grok chatbot is accused of copying and distributing lyrics. ICMP’s director John Phelan called it “the largest IP theft in human history,” alleging tens of millions of songs are infringed daily on a massive scale.
Italy’s Paid Streaming Subscriptions Jump 12.7% YoY in First Half of 2025
Italy’s recorded music market is booming while other major markets slow down. Trade revenues jumped 9.7% year-over-year in H1 2025 to €208.1 million ($236.1m), accelerating from 2024’s growth. Streaming rose 9.9% to €166.4m, with subscriptions up 12.7%. Physical formats outpaced digital, led by vinyl’s 17% surge to €21.9m, while CDs also grew 4.7%. Synch revenues dipped 4.5%. Local talent drove the success, with Italian artists claiming 90% of the top 10 albums and singles. OLLY’s Tutta Vita and Balroda Nostalgia led both charts, while Bad Bunny’s release was the only foreign album in the top 25.