PRS for Music has initiated legal action against Live Nation through the U.K. High Court's Intellectual Property division over alleged improper accounting and payment calculations for VIP ticket packages.

The dispute centers on how revenue from VIP packages should be calculated for royalty payments. According to PRS' standard terms, promoters must pay a minimum of 4% of gross box office receipts for popular concerts, which is then distributed based on performance duration.

The core issue involves determining which VIP perks should be included in gross receipt calculations:

• Perks with performance "nexus" (must be included):

  • Pre-show performances
  • Special viewing areas
  • Music-related experiences

• Perks without performance "nexus" (excluded):

  • Meet and greets
  • Merchandise
  • Food and beverages

The lawsuit comes as Live Nation reports significant growth in VIP ticket revenue, with major festivals seeing a 20% increase and amphitheater VIP clubs growing by 19% in Q3.

PRS for Music emphasizes the need for complete transparency in reporting all ticket types, including VIP packages and bundles. The organization claims Live Nation has shown "disregard" for existing licensing requirements.

This legal action highlights growing tensions between performance rights organizations and promoters over revenue calculations in the evolving concert industry landscape, particularly regarding premium ticket offerings.

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