PPL Refund

PPL have lost their appeal against the Copyright Tribunal decision and now face making millions of pounds in refunds to the pub, hotel, & retail industry.

As a result of new copyright legislation in late 2003, Phonographic Performance Ltd (PPL) received the additional right to license Radio & TV in a similar fashion to the PRS. By 2005 after a short consultation with the industry, a new tariff for background music in Pubs, Hotels & Restaurants was promulgated by PPL. On the back of the new right, PPL increased the entire range of fees for background music in Pubs, Hotels & Restaurants by in some cases as much as 400%. The BHA and the BBPA persuaded the government in October 2005 to refer the tariff, to the Copyright Tribunal, but the first hearing in November 2007 then led to an appeal on jurisdiction issues in October 2008 which the industry won. The Tribunal’s full decision in October of last year was to allow PPL only a 10 per cent all round increase which reduced the PPL tariff substantially, in some cases by around 75 per cent, but overall by over half. The High Court announced in early February, a rejection of PPL’s appeal against the Copyright Tribunal decision.

The Tribunal decision means that, for example, a hotel, restaurant or bar playing CDs/tapes or radio/TV with an audible area of just under 400 sq m, which would have paid £464.80 for its licence in 2009 under the PPL tariff, will now pay only c £110. Premises with less than 100 sq m audible area and which play only ‘traditional’ TVs and radios will pay about £55. PPL’s one area of success was that the Tribunal agreed to the proposition that they could introduce a surcharge of 50% for late payers.

PPL will now have to refund the excess fees paid since 2006 by hospitality, licensed & retail businesses but, as ordered by the Tribunal, it will not have to pay interest, nor will it have to make a refund to any licensee owed less than £50.  PPL will be writing to all affected licensees to ask them to claim their refunds.