£10m music licence refunds for pubs
Pubs across Britain will now receive up to £10 million in refunds after the High Court rejected an appeal over charges for playing music in venues.
The music service company PPL (Phonographic Performance Ltd), which collects licence fees from pubs on behalf of performers and record companies, failed in an appeal at the High Court today.
The latest ruling confirms savings of around £3 million a year for pubs, and also opens the door for refunds going back to 2005 that could amount to £10 million.
The British Beer & Pub Association (BBPA) has invested around £400,000 pursuing the case, along with the British Hospitality Association (BHA) on behalf of pubs over five years.
Brigid Simmonds, BBPA chief executive said: "This judgement confirms the victory won last November, and is another milestone which brings a step closer the prospect of substantial and fully justified refunds for pubs. This could not come at a more important time for our sector as we struggle to come out of recession and will allow pubs to both claim a refund and pay less going forward.
"With so much at stake, our persistence in pursing this case has paid off. With the appeal behind us, and pubs already benefitting from the sharply reduced charges, we are now turning our attention to helping pubs to claim the long overdue refunds to which they are entitled.
"This case also shows the importance of having a strong trade association able and willing to fight long and battles on behalf of Britain's pubs. It has never been more important for the pub industry, as well as our partners in the BHA, to work together on these issues."
Licensees will be able to claim refunds individually, based on their own calculations of what they are owed, or they will be able to ask PPL to make the calculation for them. Details of how to claim will be available in due course.
A PPL spokeswoman said: "On the appeal, the Judge was limited to considering whether the Copyright Tribunal had erred in law, not whether the decision was one he would have made based on the evidence. Naturally the company is extremely disappointed that the Judge found there was no error of law although he identified some problems with the decision of the Tribunal.
"This leaves PPL with tariffs that it believes substantially undervalue the rights of its performer and record company members."
PPL has the right to appeal the case at the Court of Appeal, but has not yet decided on its next course of action.
