Friday, October 23, 2009

BHA & BBPA "Clear Winners" in case against PPL

Some interesting news re the PPL tariff - The Copyright Tribunal announced its decision yesterday on the Phonographic Performace Ltd's (PPL) tariff for playing music in public areas in hotels, restaurants and pubs. PPL had significantly increased its tariff in 2005/06 but the British Hospitality Association and the British Beer and Pub Association were called "clear winners" as the Tribunal has ruled that the PPL must reduce their tariff substantially as much as 75% but on average by half. That means there could be up to £20million in refunds!
The Tribunal's decision allows PPL just a 10% overall increase. For example, a hotel, restaurant or bar playing CDs/tapes or radio/TV with an audible area of just under 400 square metres would have paid PPL £464.80 for its licence this year, but the Tribunal decision has reduced this to around £110.
Excessive fees paid by hospitality businesses since 2005/06 worth up to £20million are to be refunded though not for refunds of less than £50 in total. Businesses due refunds will have to claim, rather than receiving them automatically. PPL is appealing against the decision, so there will be a delay before it writes to the 41,000 hospitality licensees and 53,000 in retail, which won its parallel case, to ask them to make refund claims. Despite PPL’s appeal, the new, reduced tariffs will take effect soon for annual renewals, so your next bill should be lower and, thanks to the two associations’ efforts, the industry should save around £5 million a year from now on for all background music played in bars, restaurants, lobbies, foyers and other common areas.

Also of note is that PPL has, since 2005/06, only charged hotels for music played in their bars and restaurants (and, as before, on a separate basis for fitness centres, etc), but not for lobbies/foyers. These will now be brought back into charge. Watch this space for more news on this area.....
Read the details of the Decision of the Tribunal at: http://www.ipo.gov.uk/ct-2009-10-19.pdf
Disclaimer: the contents of this blog are not intended form the basis of legal advice. Independent legal advice should be taken from your own solicitor for all cases.