NSM says its music is fully legal

13/07/2011

NSM has disputed MCPS and PRS’ legal right to claim royalty fees for music played on NSM jukeboxes. NSM has asked MCPS and PRS for several months to prove its rights in law and where such rights derive from. MCPS and PRS has failed to do this. The Courts have also ordered MCPS and PRS to prove their rights in law.

MCPS and PRS argue that they collect royalties on behalf of its members for music played on devices such as digital jukeboxes. NSM argues that the royalties collected by MCPS and PRS are duplicated by the royalties collected by PPL in the UK.

No judgment has been ordered against NSM despite misleading statements by MCPS and PRS that they have judgment against NSM. NSM is defending its position in relation to MCPS and PRS’ claim that it has the legal right to collect royalties. The parties are proceeding through the court process at present. NSM firmly believes that MCPS and PRS have no rights in law to claim royalties.

NSM’s CEO Dr Sanghera said “NSM has a valid licence with PPL and believes that the royalties it pays to PPL cover the full extent of what is due to owners of the music in the UK. NSM takes it legal responsibility to operate a legal music service seriously. NSM has not and does not operate an unlicensed music service. “

NSM’s corporate counsel, Sameer Sacranie said “we are trying to work with MCPS and PRS to see if we can clarify the legal basis upon which MCPS and PRS base their claim. We are hopeful that a resolution can be reached. However, if MCPS and PRS continue to make groundless claims, NSM will continue to defend its position”.

NSM’s general manager, Martin Agabeg said “we want to assure all our customers that NSM’s music service is legal and properly licensed. I am sure that our legal team will be able to clarify the position with MCPS and PRS very shortly so that our customers and the market is clear on what the true legal position is on royalty collection. We are committed to delivering to our customers an unrivalled music service which is cost effective. It is important that we control the cost of royalties for our music service to ensure that we can offer our customers value for money”.

For further information please contact NSM’s corporate counsel at sameer.sacranie@nsmmusic.com

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