PRS for Music has initiated legal action against Live Nation, challenging their VIP ticket revenue calculations and payment practices. The lawsuit, filed in the U.K. High Court's Intellectual Property division, centers on proper accounting for premium ticket packages.

Under current licensing agreements, promoters must pay PRS 4% of gross box office receipts for concert performances. However, the dispute focuses on how VIP package revenues should be calculated for royalty purposes.

Key points of contention:

• VIP perks with a "nexus to public performance" (like pre-show performances and special viewing areas) should be included in gross receipt calculations
• Non-music related benefits (merchandise, meet and greets, beverages) should be excluded
• Live Nation reported a 20% increase in VIP ticket premium revenue at major festivals and 19% growth in amphitheater VIP club revenue in Q3

PRS emphasizes the need for "full and accurate reporting of all ticket types, including VIP tickets and other ticket bundles and packages," citing concerns over Live Nation's alleged disregard for licensing requirements.

This legal challenge comes as Live Nation continues to expand its premium ticket offerings and VIP experiences across venues and festivals worldwide.

The case highlights growing tensions between performance rights organizations and promoters over revenue calculations in an evolving concert industry landscape where premium experiences represent an increasingly significant portion of ticket sales.

Related Articles

Previous Articles