The Police's Royalties Dispute: A Battle of Interpretations
In the early 1980s, the Police were a force to be reckoned with, captivating fans with their unique sound and captivating lyrics. Fast forward four decades, and the band's legacy is still generating revenue, albeit in a different form.
The recent legal battle between Sting and his former bandmates, Stewart Copeland and Andy Summers, has brought to light a complex issue surrounding streaming royalties. The dispute, which has now reached the High Court, could have significant implications for the music industry in the digital age.
Sting, the band's iconic singer, bassist, and principal songwriter, is accused of withholding millions in streaming royalties from his former bandmates. The dispute centers around the interpretation of agreements made between the band's formation in the late 1970s and 2016, specifically the application of 'mechanical income' and 'public performance fees' to streaming revenue.
The key question is whether the 15% publishing income Sting agreed to pay to Copeland and Summers as arranger's fees applies to streaming. Sting's legal team argues that it doesn't, while Copeland and Summers believe it does. This disagreement has led to Sting paying over £500,000 in 'admitted historic underpayments' since the legal action began in late 2024.
The case highlights the challenges of adapting old agreements to new revenue streams. With Sting's biggest hit, 'Every Breath You Take,' having been streamed over 3 billion times on Spotify, the distinction between physical and digital products is crucial. Sting's legal representative, Robert Howe KC, emphasizes the importance of a 'professionally drafted' 2016 agreement, which states that the money is owed only on mechanical income from record manufacturing.
The Police's history is a testament to their enduring success. They achieved a US No. 1 single with 'Every Breath You Take,' which topped the charts in 1983 and remains one of the decade's best-selling singles. The band's influence continues to resonate, with 'Every Breath You Take' being sampled in Puff Daddy and Faith Evans' 1997 hit, 'I'll Be Missing You.'
The dispute between Sting and his former bandmates is not an isolated case. A similar legal battle involving the estates of Jimi Hendrix's bassist, Noel Redding, and drummer, Mitch Mitchell, is also pending a verdict. This broader issue of performers' rights, copyright, and unpaid streaming royalties is a growing concern in the music industry, as artists navigate the complexities of the digital age.
As the High Court deliberates, the outcome will have far-reaching implications for how streaming royalties are calculated and distributed. The music industry is watching closely, eager to see how this battle of interpretations will shape the future of royalty payments.