Over £15m refunds won for hospitality industry in music copyright battle

22nd October 2009, 11:46am

Refunds worth between £15 and £20 million have today been secured for the hospitality industry, after a dispute about copyright and the cost of playing music in pubs, bars, restaurants and hotels was settled.

The dispute began when Phonographic Performance Ltd (PPL) raised tariffs for playing music in bars, hotels, restaurants and pubs by up to 403% in 2005/06.

The British Beer and Pub Association (BBPA) and the British Hospitality Association (BHA) have long campaigned for price hikes to be halted.

The Tribunal has ruled in favour of the two organisations on almost every single issue at stake, with overall charges to be cut by a half. In the long-running battle, the Tribunal decision on the tariffs has seen the charges reduced dramatically, in some cases by nearly 80%.

In response to this decision, Fran Nevrkla, chairman and CEO, PPL said: "We are extremely disappointed by the decision of the Tribunal which, even by its own admission, is 'ill-equipped' to perform its new investigatory role. The Tribunal has failed to have proper regard for the real value of music to businesses, ignoring PPL's extensive consultation with licensees. On behalf of our 42,000 performer and 5,000 record company members, many of whom themselves are small businesses, we are appealing this decision in the High Court."

He added that the Tribunal's 'one-size-fits-all' approach is unfair to small pubs and shops that in future would pay exactly the same as much larger businesses. 

At a hearing on 15th October, the BBPA and BHA pressed strongly for full refunds for all those who have had to pay over the odds since 2005 to play music. The Tribunal agreed and has ordered PPL to make repayments. Licensees will be able to claim refunds based on their own calculations of what they are owed, or they will be able to ask PPL to make the calculation for them.

The new Tribunal Tariffs will now be brought into effect as soon as possible and implemented upon renewal of PPL licences. The Tribunal has allowed PPL only a 10% all round increase plus RPI.

For example, a hotel, pub, restaurant or bar playing CDs/tapes or radio/TV with an audible area of just under 400 square metres would be paying £464.80 for its licence this year under the new PPL tariff, but the Tribunal decision has reduced this to around £110.

Premises with under 100 square metres audible area and which play only 'traditional' radios and TVs will pay about £55.

Brigid Simmonds, BBPA chief executive said: "This is a major victory for the industry – not to mention the fully justified prospect of refunds for overpayments in recent years. I'd like to thank everyone right across the hospitality sector who has worked so hard to reverse these indefensible charges. It's been a long struggle, but worth it, given today's total victory. We will be doing everything we can to ensure that any appeal case is heard quickly, so that the matter of repayments can be settled as soon as possible."

Martin Couchman, deputy chief executive, BHA, added: "This successful result shows how much time and effort the industry needs to spend when it fights damaging decisions made by public monopolies. The fact that the Tribunal says we are the clear winners shows how justified we were to fight the case."

Related Articles:

• 25 Jun 2009 - Giving restaurants a boost in profit through music
• 08 Aug 2007 - Restaurant owner faces court for no PRS licence
• 11 Jun 2007 - PRS PAY IS MUSIC TO THEIR EARS

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Colin

31 October 2009 at 12:09pm

This is only the PPL fees, there are also PRS fees that need paying. The alternative is to play www.rfmradio.co.uk or use their cds and even have your own adverts added to them. This station also gives unsigned bands an airing which they wouldnt normally get. So try Royalty Free Music Radio a try all hosted shows with professional DJs.

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