Master Rights Agreement 2027 Update

We note that the proposed updates as described further below are largely operational to align with our existing practice and new systems - and we don't consider any of the proposed updates to be contentious. However, we understand that music licensing is complex so our priority is to be clear and transparent with Rights Holders about the updates and what they mean - and to carefully consider any issues raised.

What’s Next and Timeline:

• Consultation is open until 30 November 2026. We have published these updates with the intention of consulting with Rights Holders regarding any issues that they may have and we are available during November to assist with questions. We also encourage you to seek independent legal advice regarding this update should you wish to do so. Please submit any feedback in writing to memberservices@recordedmusic.co.nz

• Publication: We intend to publish the final updated Master Rights Agreement (including any changes made to the New Administrative Provisions and/or Updated Statements of Rights following Rights Holder feedback) during December and it will take effect from 1 January 2027.
• Effect of Publication and Formal Signature: After publication of the Final Updated Master Rights Agreement all new terms will apply. New Rights Holders will be required to enter into the updated form of Master Rights Agreement and we will be contacting all existing Master Rights Holders individually (via AdobeSign or similar) to sign the updated Agreement for completeness. Note: all of the rights granted to Recorded Music NZ under the Master Rights Agreement are non-exclusive and if you wish to opt out of any of the Updated Statements of Rights, you are free to do so at any time before the end of 2026 by advising us in writing at memberservices@recordedmusic.co.nz
• Distribution Deadline: The New Administrative Provisions will apply to Distribution in 2027. Rights Holders will be required to sign the new Master Rights Agreement by 30 June 2027 in order to receive a Distribution.

What is the Master Rights Agreement?

The Master Rights Agreement is the key document that gives Recorded Music the rights we need to grant licences to third parties and to collect and distribute funds on behalf of Rights Holders. It is made up of two parts:

Part 1 covers the administrative aspects of our contractual relationship (including setting out: the authority for Recorded Music to act on your behalf; what information we need; how you are paid; and other contractual matters around termination, warranties and indemnities etc.); and

Part 2 comprises a range of Specific Rights Agreements covering the licensing categories that Recorded Music NZ licences on your behalf (known as Statements of Rights).

You can read more about the Master Rights Agreement HERE.

What is being updated?

Effective 1 January 2027, we are:

1. Adopting New Administrative Provisions by replacing the current Part 1 with new administrative provisions very similar to those published by PPCA (our Australian counterparts); and
2. Updating some of the Statements of Rights set out in Part 2 of the Master Rights Agreement.

Part 1 - New Administrative Provisions

Background

As part of the ongoing roll out of our new data & distribution system, including the launch of the myRecordedMusic portal, we have taken a range of substantial steps forward to improve the efficiency of what we do and the service we provide to rights holders and recording artists.

Over the last two years we have been working closely with our international counterparts PPL (UK) and PPCA (Australia) not only to upgrade our systems and connect our repertoire databases but to align our licensing & distribution operations with global best practice.

In connection with this, we have already made a range of changes to our Distribution Policy via the transitional schedule and further updates will follow. It is now time to take the next step of updating the administrative provisions (i.e. Part 1) of our Master Rights Agreements to ensure that they accurately reflect how we are now operating using our new system and are aligned with the practices of our international partners.

What are the New Administrative Provisions?

We are replacing the previous Part 1 of the Master Rights Agreement (which covers the administrative aspects of our contractual relationship) in its entirety with the New Administrative Provisions published [here].

The new provisions are simpler and clearer than the previous Part 1, reflect how we operate in practice today and are very closely based on (and in many cases identical to the provisions contained in) PPCA’s equivalent agreement which applies to all of PPCA’s Australian and international licensors.

As you will see, we have published a version which shows in redline differences between our new Part 1 provisions and PPCA’s administrative provisions. These differences occur due to: some specific local definitions and policies & practices that we have in place; how myRecordedMusic specifically works; and differences between NZ and Australian law. For example we have significantly amended the tax provisions at clause 9 to comply with NZ law and our current and proposed Master Rights Agreement does not have any equivalent of the PPCA clauses relating to audit (see deleted cl 5.5) and distribution updates (deleted cl 8.3), which are not and have never been part of our customary practice.

Please note: The New Administrative Provisions have no impact on the rights that you grant to us in relation to your recordings and the type of rights that we license to music users; and do NOT change your distribution ($) entitlement. Although the Administrative Provisions that relate to distribution are now different, the way that we apply the Distribution Policy in practical terms is exactly the same.

What is changing under the New Administrative Provisions?

HOW MASTER RIGHTS HOLDERS ADVISE US OF THEIR RIGHTS AND REPERTOIRE AND WHAT INFORMATION WE REQUIRE, INCLUDING THE REPERTOIRE SOURCES THAT WE RELY ON.

We still require you to warrant and represent that you are the owner or exclusive licensee in New Zealand of copyright in any and all sound recordings and music videos registered by you (or on your behalf) and that you have the rights necessary to grant the required licence to us – and the provisions make it clear that we rely on the information registered with us. The updates at clauses 4.1(iii), 4.4, 5, 14.3 and Schedule 2:

• include reference to the new systems we use to store and process data relating to rights holders, artists, repertoire and usage data and to allocate distributions;
• make it clear how rights holders submit recording data to us (via our new system myRecordedMusic) and how Registered Artists claim their share of repertoire that has been registered with us; and
• set out the rights information and data that we require to be able to track usage and process distributions in relation to recordings (importantly ISRCs are now mandatory).

THE WAY WE MAKE PAYMENTS TO MASTER RIGHTS HOLDERS AND REGISTERED ARTISTS

• The new provisions clarify how we calculate and pay your distributions in practice (including that we are now able to pay Master Rights Holders automatically and will send a corresponding Statement (formally named a Buyer Created Taxable Supply Invoice or BCTSI) for your records, rather than requiring you to invoice). See clauses 6,7, 8 and 9.

THERE IS REFERENCE TO SOME OTHER UPDATED POLICIES AND PRACTICES

• clarify the existing position that the licence granted to us by you is non-exclusive - and that rights holders remain free to negotiate with music users individually if you wish to do so (which is already the case) (see clause 3);
• set out how we manage repertoire conflicts (i.e. situations where two parties have claimed they are entitled to be paid for the same track); complaints and disputes; and your privacy (see clauses 4.4(iv), 14.9 and 14.10); and
• clarify how a Master Rights Agreement, or Specific Rights Agreements may be terminated (see clause 13).

What is NOT changing under the New Administrative Provisions?

• No change to your distribution ($) entitlement or the basis upon which that is calculated in practice, including how we apply usage data and the weightings that we use. This will continue to be governed by Recorded Music NZ’s Distribution Policy.
• No change to the fundamental obligations of Rights Holders. You still warrant and represent to Recorded Music NZ that you are the owner or exclusive licensee of copyright in New Zealand in any and all sound recordings and music videos registered by you (or on your behalf), and that you have the rights necessary to grant the required licence to Recorded Music NZ. You also agree to indemnify Recorded Music NZ in respect of any breaches of this warranty; and have an ongoing obligation to provide a range of up-to-date and accurate information to Recorded Music NZ.
• No change in your ability to negotiate licences with music users directly/individually (for the same rights you have non-exclusively granted to us) should you wish to do so.
• No change to who is eligible to register as a Master Rights Holder or claim as a Registered Artist.

Part 2 - Updated Statements of Rights

Background

During the time that we have been updating our systems, we have also been engaging with music users and rights holders to better understand their licensing needs and future plans. As a result of this we are proposing a small number of clarifications and changes to the Rights that are granted to us under the Master Rights Agreement to ensure that they are fit for purpose and so that we can continue to serve the market and deliver value to our rights holders and licensees.

What are the Updated Statements of Rights?

The Master Rights Agreement previously comprised 10 Specific Rights Agreements covering the licensing categories that Recorded Music NZ licences on your behalf with specific and detailed definitions to provide additional clarity. Read more here.

As previously communicated, we have been considering potential updates to these rights for some time. We are now publishing some limited rights updates and clarifications with the aim of better serving you as our rights holders and responding to music use and technological changes in the market.

Please note that all of the rights granted to Recorded Music NZ under the Master Rights Agreement are non-exclusive and that you are free to opt-out of any of these updated Statements of Rights should you wish to do so. Please also note that if you do choose to opt-out of any Statement of Rights you will not be entitled to participate in the distribution of funds made in respect of use of the rights granted by such Statement of Rights.

What is changing under the Updated Statement of Rights?

For the most part, the rights that you grant to us will remain the same as currently published in Part 2 of the Master Rights Agreement and as have been exercised in practice since 2019. However we are making the following changes.

• New Statement of Rights – Semi-Interactive Webcasting: this new proposed Statement of Rights is very close to that published by PPCA and provides clear authority for Recorded Music to licence services that operate in the gap between linear online radio (where we already provide a range of licences) and interactive streaming services (where rights holders license direct). Certain of our key radio licensees are already operating, or are seeking to operate, in this area and in some cases we already license these rights in accordance with the Audio and Audio-Visual Communication Statement of Rights. However this new Statement of Rights clarifies and confirms the boundaries of what we can license.
• New Statement of Rights – National Archive Use and Cultural Preservation: this new proposed Statement of Rights specifically allows for certain limited non-commercial, archival use of sound recordings that goes beyond the scope of our current rights. This new Statement of Rights will enable Recorded Music to provide efficient licensing solutions for New Zealand organisations that have a role in preserving our cultural heritage, such as Ngā Taonga.
• Amended Statement of Rights – Radio: this Statement of Rights incorporates some minor amendments to clarify that:
  • apps operated by Radio licensees are covered;
  • a simulcast can include video (e.g. in-studio) content;
  • podcasts including music may include ads; and
  • there is a proposed change to extend the term of use so that podcasts which include music can stay live on licensed radio platforms for 1 year instead of 30 days, which incentivises the use of music and aligns with the approach in place for the BBC in the UK and in some other European territories.
• Amended Statement of Rights – Radio New Zealand: this has the same changes as above – and incorporates the proposed Semi-Interactive Webcasting Statement of Rights.
• Amended Statement of Rights – Non-Interactive Webcasting: this Statement of Rights incorporates some small amendments to distinguish it from Semi-Interactive Webcasting and clarify that:
  • apps operated by licensees are covered;
  • these may be paid services too, rather than available free of charge only; and
  • may include music videos.
• Amended Statement of Rights – Music On Hold: for completeness we have included a minor technology update which aligns with the equivalent PPCA grant of rights.

What is NOT changing under the Updated Statements of Rights?

There is no change to any of the below Statements of Rights: