Coulson: Unharmonious PPL proposal

By Peter Coulson

- Last updated on GMT

Related tags Ppl Economics Affect Phonographic performance limited

'Extraordinary': Peter Coulson's take on new PPL proposals
'Extraordinary': Peter Coulson's take on new PPL proposals
The PPL proposal for a massive hike in featured music fees is extraordinary and has understandably elicited howls of protest, writes Peter Coulson.

Still on the subject of pub music, I note trade organisations' understandable outrage at the recent proposal from Phonographic Performance Limited (PPL) for a massive hike in featured music fees.

There is some history here, as many in the trade will know. Not so long ago, PPL was forced to pay back a great deal of money in respect of what was considered by the Copyright Tribunal and the High Court to be overcharging on tariffs for recorded music.

Undaunted, it seems, PPL has come back for more, on the basis of the 'value' of music as assessed by a third party. This, of course, is as long as the proverbial piece of string. Both the Performing Right Society (PRS) and PPL themselves have been on something of an advertising charm offensive, claiming how much music enhances the pub-going experience. This may or may not be true for everyone, but that in itself is no justification for the fairly strong-arm tactics often used by both agencies against individual licensees.

There is no doubt that, of the two, PPL has the tougher attitude and clearly this latest consultation simply seems to be a declaration of a fresh battle against the licensed trade, who could not possibly accept anything approaching these figures.

What strategy is involved here is not entirely clear. The matter will clearly find its way eventually to the Copyright Tribunal, which is most unlikely to concede a rate hike of this nature, judging from its past pronouncements. Nor will the trade be prepared to 'settle in the middle' — there is no middle ground on the proposed figures and I should have thought PPL would know this from the start.

But there is, of course, some way to go yet. If as a result of the consultation, PPL imposes a new tariff which affects the industry, there is a procedure for referral to the Copyright Tribunal under the Copyright, Designs and Patents Act 1988, which is usually taken by a representative body or bodies of the sector affected.

These are always complex matters and can be long-drawn-out. They are also expensive, but in the past the trade has always considered it is worth the effort and expenditure, because of the way in which tariff rises affect everyone.

Even for this organisation, however, the PPL proposal is extraordinary and has elicited howls of protest. Expect m'learned friends to be involved in due course!

Related topics Property law

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