Friday 29 May 2015

PRS Licenses and your business


It has been an interesting week this week and I had an appointment at an Afro Caribbean Radio Station and recording studio frequented by people like Maxi Priest.

It made me think about the costs of listening to music and the fees charged by the PRS and the PPL.
Quite often these costs can be expensive and hidden in commercial property service charges. 
If your Landlord charges his overall site management fee on a percentage basis of the total of your service charge, then perhaps you are paying even more than you need to.

So how do you reduce this cost or avoid the need to pay for a PRS or PPL License if you are a tenant?

Indeed many small business forums contain posts from people who have received large demands for license fees from the PRS without any notice.

One situation I came across recently was an NHS employee working on an expansive first floor reception in a multi occupied PFI building.  She had a small radio playing next to her on the desk and the landlord had received a rather large bill from the PRS and paid it - and had snook in into the service charge.  On investigation the employee said that the radio was for ‘privacy’ reasons so she could deal with patients at the reception area without anyone else sitting nearby listening into their conversation as the place  was ‘echoey’.  However the PRS was charging a rate for broadcasting the radio to the entire waiting area.
Due to the limitations of the landlords service charge billing expertise, ALL of the tenants in the building were being charged a portion of the large PRS license fee, whether they used the first floor reception or not.

So my recommendations are as follows:

Firstly look closely at your service charge bill – if you don’t get a breakdown of what you are paying for, ask your Landlord to provide one.

If you are paying directly or indirectly for a PRS license then check whether you should be paying – are you playing the music or benefiting from it being played?  If not then you need to consult with your Landlord and the PRS.

If you want music playing but don’t want to pay for a license then you need to take a good look at the rules for playing music that is out of copyright or loyalty free.  It is extremely simple to access royalty free radio stations online or to download / obtain music or CDs that are out of copyright or loyalty free. I’ve listed a few web sites to check out at the end of this post. I will try and get the links running but today my new laptop is not playing ball.

The alleged sharp practises of the PRS in collecting royalties has been the topic of many business forum discussions and one of the most interesting threads I have read was the outcome of the case Societa consortile Fonografici (SCF) V Marco Del Corso which was a high level Italian SJEU court case relating to the playing of a radio in an Italian Dentist’s waiting area and whether a PRS license was required.  
In this case  it was found that the playing of music in the patients waiting area was only to a ‘limited class of public’ and was not a ‘communication’ for ‘profit making purposes’ i.e. that the patients were not flocking to the dentist because he had a radio in his waiting area, but to get treatment - they were accidental listeners!  
The PRS has claimed that the position is different in the UK and has continued to demand license monies from NHS and similar tenants, but it has been noted by law firms that the position is up for challenge should there be a further reference of a UK case to the CJEU.


Other links for Royalty free music and radio and general information about copyright are below:

Copyrightsandwrongs.nen.gov.uk
https://musopen.org/
https://www.jamendo.com/en/welcome
http://www.imsradio.net/
http://rfmradio.co.uk/flash.swf
http://www.ichillmusic.com/
http://www.akmmusic.co.uk/
http://radio.publicdomainproject.org/





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