NCS (NoCopyrightSounds) wins application for substantial interim payment and interim accounts

An application was brought by NCS in March 2026 pursuant to CPR 25, specifically r. 25.23(c) (the interim payment) and r. 25.1(1)(o) (interim accounts), which was heard by the court on 23 July 2026.

Judgment was given on the interim accounts application at the hearing itself, and a written judgment was handed down in respect of the interim payment application on 15 September 2026.

The court ordered the Defendants to provide interim accounts setting out the amount of the debt owed to NCS by AEI Music, plus the amounts it had retained (post termination of the relationship) which were due to NCS's artists and songwriters. In addition, the ordered accounts were to contain detailed accounting information over a specified period, and provide clarity on the recoupment position of NCS's artists and songwriters.

Separately, the court considered the value of various claims NCS has against AEI Music, and the counterclaims asserted against NCS. The court found that £1.4m was a reasonable proportion of the likely amount NCS would receive at trial, and that it should not have to wait until trial to receive any payment at all.

In reaching this conclusion, the court considered the relevant test, being whether at trial the Claimant would obtain judgment for a substantial amount of money (other than costs) against the Defendants.

The court found that there was no real dispute that AEI Music owes NCS very substantial sums. Therefore, the court had to consider the Defendants' defences in the claim and also their pleaded counterclaim for breach of contract and unjust enrichment.

The court found that it was entitled to consider AEI Music's submission that there is nothing presently due to NCS because of waiver/estoppel was one it could reject. The allegation that NCS had said the debt did not need to be repaid "immediately" was merely suspensory and came to an end when the letter of claim sent; alternatively, it allowed a reasonable time to pay, rather than an indefinite suspension. AEI Music had made no suggestion as to what a reasonable time might be, and nearly a year and a half had passed since the alleged estoppel.

Next, the court had to consider what level of interim payment should be made, which must be no more than a reasonable proportion of the likely final judgment amount; and must take account of any setoff or counterclaim.

The court, on this interim basis only, gave credit to a £1.06m counterclaim for alleged breach of contract for early termination; and £2m for an alleged unjust enrichment counterclaim, which had not been valued in the pleadings, but had been in the pre-action correspondence.

NCS had claimed an interim payment of £3m, taking account of the estimated debt, interest and separate amounts due to its artists and writers totalling £6.5m.

The court found that, even on the Defendants' own evidence, the debt is at least £4.5m. Deducting the £3.06m total counterclaim and rounding down, the court awarded an interim payment of £1.4m, plus interest (to be determined). The court described this approach as generous to the Defendants.

The claim will now proceed to a trial in January 2028 where NCS will be seeking the payment of a debt (or damages) plus interest of an additional circa £5 million, plus a full account, and to defend the counterclaims.

NCS was represented by Simkins Partners Tom Iverson, Ed Weidman, Stuart Smith and Associates Hugo Mason and Ned Gompertz, who instructed Ian Mill KC and Tom Cleaver of Blackstone Chambers.

The interim payment judgment is available here.