PPL adds late payment charge

By John Harrington

- Last updated on GMT

Related tags License Money Payment Ppl

PPL: late fees will apply
PPL: late fees will apply
Music licensing body PPL is to add a 50% late payment surcharge for pubs during 2010, following a surge in delayed payments.

Music licensing body PPL is to add a 50% late payment surcharge for pubs during 2010.

It follows a surge in delayed payments of public performance fees from pubs and other businesses during the economic downturn.

In its annual report for 2009, PPL said: "One of the side-effects of the recession was, and still is, a greater general reluctance from our customers to voluntarily pay us."

The report said "debtor delays" and the number of invoices paid had been "declining significantly" in 2009.

"We responded accordingly by putting more effort and resources into managing late payers, the results of which will be further enhanced in 2010 by the company operating a 50% late payment surcharge."

PPL's report shows licence fee income for public performance and dubbing fell £5.3m to £48.9m last year.

Finances have also been squeezed by PPL's failed High Court challenge against the Copyright Tribunal. PPL expects to refund £18.1m to pubs and other venues after the High Court agreed PPL had charged too much for licences since 2005.

Speaking at PPL's AGM today, chairman Fran Nevrkla labelled the Copyright Tribunal's ruling "eccentric and bizarre".

He added: "Business must continue but I regard this as a piece of unfinished business."

The report explains that the new surcharge was "one of the few, but fair" benefits introduced by the Copyright Tribunal.

PPL flagged up British Beer & Pub Association figures that show 2,360 pubs closed in 2009.

But despite businesses closing, the report says the number of public performance licences still grew in 2009, suggesting a rise in monitoring by PPL and the use of music in pubs generally.

Revenue from public performance would have grown 6% if it wasn't for the Copyright Tribunal decision, the report says.

Pubs are now able to make claims for refunds from PPL after its failed challenge.

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