SoundCloud and PRS sidestep lawsuit with new license deal

SoundCloud has struck a deal with PRS for Music concerning a music license that covers multiple territories. According to PRS, the deal is retroactive, covering SoundCloud's use of PRS's library for the entirety of its existence; it also covers SoundCloud's planned subscription service and advertising. SoundCloud and lack of royalty payments have been a big issue for the company, one it has started addressing more extensively.

In August, the Performing Rights Society (PRS) for Music sued SoundCloud over its alleged failure to pay royalties for music hosted on its service. According to PRS, SoundCloud had failed to work with the agency, and had later deleted some infringing music from its service.

The move only served to confuse PRS, however, which had said in a statement that it had "no visibility or clarity on SoundCloud's approach to removing works," and that it wasn't "currently clear why [those] particular posts have ben select by them given the wider issue of infringement that is occurring."

The two companies have been able to hash things out since then, coming to a mutually acceptable deal under which "negotiated agreement" won out over the long and unwanted process of litigation.

Said SoundCloud's CEO Alexander Ljung:

We're pleased to have reached an agreement that will expand revenue opportunities, improve the accuracy of royalty distributions, and launch new services for our 175 million monthly active listeners on SoundCloud in 2016.