The hidden cost of listening to music
Most businesses are already aware that it is necessary to obtain a PRS (Performing Right Society) for Music licence for the purposes of playing recorded music in business premises. However, it is less well known that it is also necessary to obtain a PPL (Phonographic Performance Limited) licence for these purposes.
The reason the above two separate licences are required is that under the Copyright, Designs and Patents Act 1988 (“CDPA”) a recorded song is comprised of three distinct “works”: 1) a musical work; 2) a lyrical work; and 3) a sound recording work. PRS for Music and PPL are separate organisations which collect royalty payments in relation to the exploitation of these distinct works. PRS for Music collects royalties, largely on behalf of songwriters and music publishers, in respect of musical and lyrical works, and PPL collects royalties, largely on behalf of record labels, in respect of sound recording works.
As a result of online music piracy and the decline in physical music sales, the music industry is attempting to secure its other revenue streams. PPL, on behalf of record labels, is therefore becoming increasingly proactive in ensuring that all businesses which play recorded music in their premises are appropriately licensed. The good news is that a PPL licence is relatively inexpensive; the bad news is that failure to obtain a PPL licence can result in fines and ultimately legal proceedings.
Please contact us for more information on PRS for Music and PPL licences.
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