Confusion among Chester businesses over PPL and PRS for Music licences requirements

Feb 11 2010 by Dave Goodban, Chester Chronicle

FOR many of us, popping into a newsagent, café or butchers is part of our everyday life.

Maybe you hear the latest chart-topping record or a classic record playing quietly, almost unnoticed in the background.

But how many know that these businesses are required, by law, to buy two separate licences before they are allowed to play their music within earshot of the public?

Likewise, how many small business owners know that they need paid-for permission from royalties collectors PRS for Music (formerly the Performing Rights Society) and Phonographic Performance Ltd (PPL)?

Both PPL and PRS are not-for-profit organisations, which take out basic administrative costs before redistributing licence fees among their tens of thousands of members.

But a couple who own a small city centre business say they are angry at the lack of information available on these licences.

Tom, 44, and Jo Sandbach own and run the Number 46 sandwich shop in Lower Bridge Street, and until recently were unaware they needed a licence to play a radio in their shop, even if it was just for the benefit of their employees.

They are also angry about the total cost of the licences and believe the fee is just another tax on small businesses.

Jo, 41, of Farndon, said: “Music artists are already being paid through the TV licence, commercial revenue on radio stations and CD sales and downloads, and now they’re wanting small firms like us to pay them as well.

“I fully understand for places like big shops and pubs, where they usually play music, and I can see why they should have to pay for a licence.

“But all we want is just a radio to play music for our staff and we’re being asked to pay £180 for the licences. We’ll just have to take our radio away now.

“If we had two small firms in different bases, we would have to pay twice.

“It’s unfair on small businesses, the Government never makes concessions and it’s just being greedy on their part, as they are collecting the VAT on this fee.”

A PPL spokesman said: “There are two separate copyrights in a sound recording and a licence is required for each one.

“The copyright in the lyrics and composition are owned by the author and music publisher, and this is administered by PRS for Music.

“And the copyright in the performance and sound recording are owned by the performers and record company and administered by PPL.

“As PRS for Music and PPL operate for different rights owners they have always remained separate companies.”

Licences from both organisations depend on a number of factors, including the size of the business and the nature and extent of use of the copyrighted material.

Failure to obey a banning order would be regarded as contempt of court, the penalties for which can be fines of up to £10,000 and up to six months prison.

Barney Hooper, spokesman for PRS for Music, said: “If you play music in your business you need clearance to do so from the owners of that music. PRS for Music represent the owners and can get you the clearances you need.

“Licence fees apply when music is performed ‘in public’. If you are the only person on a premises and music is not audible to anyone who visits the premises, such as your clients, then PRS for Music does not charge a licence fee.

“But it’s always best to contact us to discuss your music use to be sure that you have the correct licence.”

The PPL spokesman added: “PPL’s public performance licences allow thousands of clubs, shops, pubs, restaurants, bars and other music users to play sound recordings and music videos in public.

“If you play recorded music in public, or broadcast them, you will be infringing copyright unless you are appropriately licensed by PPL.”

From April 1 this year charities, community halls, student unions, voluntary organisations and social enterprises will have to pay to play music, in line with the rest of Europe, and will need a PPL licence.

It is believed it will cost voluntary groups £20m a year, with a quarter of a million organisations affected.

In response to the changes, PPL and PRS for Music will develop a joint scheme to offer a simple one-stop shop for charities about the costs involved.