Tag: black box royalties

# David Rowntree, Black Box Royalties and the Hidden Data Problem in Music Rights Blur drummer David Rowntree has lost his Court of Appeal case over so-called black box royalties, bringing renewed attention to one of the less visible parts of the music industry: what happens to royalties when they cannot be clearly matched to the correct songwriter, composer, publisher or rights holder. The case is important not only because of the amount of money involved, but because it highlights how dependent the modern music business has become on accurate data. Songs, recordings, cue sheets, usage reports, publishing splits and rights information all need to connect properly for royalties to reach the right people. When that process breaks down, the money may still be collected, but it becomes much harder to distribute accurately. ## What are black box royalties? Black box royalties are essentially unidentified royalties. They are royalties that have been collected by a collection society or rights organisation, but cannot be accurately paid out because there is not enough reliable information to connect the money to the correct work or rights holder. This can happen for several reasons. A song might be performed, broadcast, streamed or used commercially, but the data attached to that usage may be incomplete. There may be missing metadata, incorrect ownership information, unclear writer splits, incomplete cue sheets, duplicated titles, conflicting publishing details or problems with international reporting. In simple terms, the royalty exists, but the system cannot confidently identify where it should go. ## Why did David Rowntree take legal action? David Rowntree’s case focused on how these unidentified royalties are distributed when they cannot be matched directly to the correct songwriter or composer. The argument was that the system used to distribute these unmatched royalties was unfair to songwriters. PRS disputed the claim, and the Court of Appeal dismissed Rowntree’s challenge. That legal decision matters, but the wider issue is bigger than one case. It raises questions about how music royalties are tracked, how transparent those systems are, and how much money can sit inside the industry without a clear route back to the people who created the work. ## Why this matters in today’s music industry The music industry is now built around huge volumes of data. A single piece of music might move through streaming platforms, radio, television, film, advertising, games, live performance, production libraries, social media and international licensing systems. Each of those uses can generate royalties. But for those royalties to be paid correctly, the music has to be identifiable at every stage. That means the systems need to know what the work is, who wrote it, who published it, who owns the recording, where it was used, how it was used and which rights apply. When the information does not match, royalties can become detached from the people they belong to. This is why black box royalties are not just a small administrative issue. They point to a structural problem in how music rights are managed at scale. ## A data problem as much as a royalty problem Music royalties are often discussed in terms of fairness, ownership and payment rates. Those conversations are important. But this case also shows that the infrastructure behind royalties matters just as much. A royalty system is only as accurate as the data flowing through it. If the data is incomplete, inconsistent or badly connected, the payment system cannot work properly. For songwriters, composers and rights holders, that means the commercial life of a piece of music depends on more than the creative work itself. It also depends on the information attached to that work. That might sound unglamorous, but it is central to how music earns money in the real world. ## Why composers and creators should pay attention For composers, songwriters, producers and independent artists, the Rowntree case is a useful reminder of how complicated music rights have become. This is especially relevant for anyone working across film, television, games, sync licensing, production music or online platforms, where music can be used in many different contexts and territories. The more places a piece of music travels, the more important accurate identification becomes. A track used in a short film, a documentary, a YouTube campaign, a podcast, a game trailer or a TV programme may pass through several reporting systems before royalties are calculated. If the data does not connect properly, the money may not either. ## The hidden side of music income The most visible parts of the music industry are creative. Writing, performing, recording, producing and mixing are the areas people usually focus on. But behind that creative work is a less visible system of rights, registrations, reporting and royalty distribution. That system determines whether usage turns into income. The David Rowntree case has put a spotlight on that hidden infrastructure. It shows that one of the most important questions in the music industry is not only whether music is being used. It is whether the system can identify exactly whose music it is. ## Final thoughts Black box royalties may sound like a niche publishing issue, but they reveal something much bigger about the modern music business. Music now travels through more platforms, territories and licensing systems than ever before. That creates more opportunities for creators, but also more opportunities for data to become disconnected from income. The Rowntree case may have ended in the Court of Appeal, but the wider issue is unlikely to disappear. As the industry becomes more digital, global and data-driven, the accuracy of music rights information will become even more important. Because royalties do not only depend on music being used. They depend on the systems behind that music being able to identify who should be paid.