Refunds confirmed for those paying to play music in public spaces

March 2010

As a follow up to our update in November last year (see Related information), we can confirm that the High Court recently upheld the Copyright Tribunal's ruling that increases in certain Phonographic Performance Limited (PPL) licence fees were unreasonable and unjustified.

As we reported, the case related to increased tariffs which came into force on 1 January 2006 for licences for the public performance of sound recordings in pubs, bars, restaurants, cafes, shops, stores, offices and factories.

The result of the decision is that refunds that were delayed pending the outcome of the appeal are now to be paid to licensees owed more than £50. Groups of licensees are entitled to add their overpayments together in order to get over the £50 threshold. Licensees can claim refunds based on their own calculations or apply to PPL to do the calculation for them. It is estimated that this could total repayments of up to £20 million.

PPL issued a statement saying that it was "extremely disappointed" and that "this leaves the PPL with tariffs that it believes substantially undervalue the rights of its performer and record company members." The British Hospitality Association and the British Beer and Pub Association, welcomed the judgment as a "victory".

Should you require any advice on the effects of this decision for your business or have any related queries, please contact a member of TLT's Intellectual Property team.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at March 2010. Specific advice should be sought for specific cases; we cannot be held responsible for any action (or decision not to take action) made in reliance upon the content of this publication.

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