PPL forced to pay back up to £20m to pubs - and current fees to be cut in half
Pubs that play recorded music are in line for a share of refunds totalling up to £20m from royalties collection firm PPL after a ruling from the Copyright Tribunal.
PPL will also be forced to put new tariffs in place for pubs, hotels and restaurants - with some venues expected to see their bill cut in half.
At a final hearing last week following a long-running dispute, the government's Copyright Tribunal agreed with the British Beer & Pub Association and British Hospitality Association's argument that venues have been paying over the odds since 2005.
The tribunal ordered PPL to make repayments, which is estimated to be between £15-£20m in total. However, the firm says it will appeal the decision in the High Court.
If it fails, licensees will be able to claim refunds based on their own calculations of what they are owed, or they will be able to ask PPL to make the calculation for them - but anyone owed less than £50 will not see money returned.
The new tariffs will be brought into effect as soon as possible upon renewal of PPL licences.
The tribunal has allowed PPL only a 10 per cent all round increase plus RPI.
Brigid Simmonds, BBPA chief executive said: "This is a major victory for the industry - not to mention the fully justified prospect of refunds for overpayments in recent years.
"I'd like to thank everyone right across the hospitality sector who has worked so hard to reverse these indefensible charges.
"It's been a long struggle, but worth it, given today's total victory. We will be doing everything we can to ensure that any appeal case is heard quickly, so that the matter of repayments can be settled as soon as possible."
In response to this decision, Fran Nevrkla, Chairman and CEO, PPL said: "We are extremely disappointed by the decision of the Tribunal which, even by its own admission, is 'ill-equipped' to perform its new investigatory role.
"The Tribunal has failed to have proper regard for the real value of music to businesses, ignoring PPL's extensive consultation with licensees. On behalf of our 42,000 performer and 5,000 record company members, many of whom themselves are small businesses, we are appealing this decision in the High Court."
He added: "The Tribunal's 'one-size-fits-all' approach, which was proposed by the hospitality industry, is particularly unfair to small pubs and shops that in future would pay exactly the same as much larger businesses.
"Despite a total absence of opposition to PPL's tariff for factories and offices, the Tribunal has completely overturned that tariff, ignoring the clear views of respondents to PPL's consultations."
