Pubs due refunds on PPL licence fees
Pubs can claim millions of pounds in refunds after the trade won a major legal victory against PPL (Phonographic Performance Limited) over background music played in pubs.
The Copyright Tribunal reached its decision after a long-running dispute between PPL and the British Beer & Pub Association (BBPA) and the British Hospitality Association (BHA). However, PPL now plans to appeal the decision with the High Court, which could mean a substantial delay to the refunds.
The trade bodies estimated that since fee hikes took effect in 2005, pubs and restaurants have paid £15-20m over the odds.
At the time PPL raised tariffs for playing music in pubs, bars, restaurants and hotels by up to 403%. The matter was referred to the Secretary of State four years and nine months ago.
The Tribunal has ordered PPL to make full refunds, dated back to 2005, to licensees.
Licensees will have to apply individually to PPL for their refunds based on theri own calculations, or they can ask PPL to make the calculation on their behalf. However no refund under £50 will be made.
New tariffs, set by the Tribunal will be brought into effect as soon as possible and implemented upon renewal of PPL licences.
The Tribunal has allowed PPL only a 10% increase, plus RPI.
A pub playing CDs or radio with an audible area of just under 400 square metres would have paid £464.80 for its licence this year under the new PPL tariff, but the Tribunal decision has reduced this to around £110. Smaller pubs, with under 100 square metres audible area, and which play only 'traditional' radios and TVs will pay about £55.
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. 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."
But Fran Nevrkla, chairman of 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."
