Insight · Copyright & Music
CAT rejects royalties class action: practical steps for creators & labels (27/08/2025)
Summary: The Competition Appeal Tribunal declined to certify an opt-out collective action concerning royalty distributions (the “black box” issue). For music and wider creative sectors, class-style redress remains difficult—contractual audit rights, metadata quality and transparent reporting are still the best risk controls.
Why it matters
- Collective redress faces high certification hurdles.
- Parties should rely on contractual levers and audit-ready data.
What to do next
- Upgrade audit clauses: specify frequency, scope, format, and third-party auditors (see commercial contracts).
- Metadata hygiene: ISRC/ISWC, splits, writer IDs, cue sheets—quarterly checks (useful for content creators and YouTube workflows).
- Transparency schedule: agreed reporting templates, interest on late payments, dispute windows.
- Governance: consider ADR clauses (expert determination/mediation) to resolve distribution disputes fast; align with platform and TV/film partners.
Key points
- Litigation aggregation is not a shortcut.
- Good contracts + clean data = fewer disputes.
- Funders expect tight class definitions—rare in fragmented catalogues.
Sources
- Competition Appeal Tribunal case page: catribunal.org.uk
- Industry coverage: musicbusinessworldwide.com