Music to my Ears – Playing Music in the Workplace

Music to my Ears – Playing Music in the Workplace 

Confused about what type of licence you  need to play music in your shop, office, factory or other work place, not to mention restaurants and bars?  You’re not alone.  Here, we explain when it is necessary to obtain (and pay for) a licence from the Performing Rights Society (PRS for Music) and Phonographic Performance Limited (PPL).

Many bars, restaurants and retail stores play recorded music as part of the theme of the premises or as an attempt to create a specific atmosphere and ambience for their customers. Some offices and many factories and workshops, allow the use of radios or background music for their staff to listen to while they work.

Research has shown that in shops, background music increases sales, lengthens the amount of time customers spend in a shop and lifts the sprits of staff. The fact that business owners need to pay for the right to play recorded music confuses many, especially when they have already bought and paid for the music. Often business owners either ignore or overlook the need to pay a licence fee for the privilege of either playing music or just having the radio on that staff and customers can listen to. The first time they are aware of it is often a visit and/or a nasty letter from PRS for Music or PPL.

Who are PPL and PRS for Music?

PPL and PRS for Music are two separate organisations that are responsible for licensing ‘music users’ and collecting royalties for copyright music on behalf of their members. PPL represent the interests of performers and record companies and PRS for Music represent the music writers, composers and publishers.

Technically, all copyright music requires the permission of the copyright owner for every piece of music being performed. However, PPL and PRS provide a means of obtaining that permission through their licensing system and they are responsible for distributing the fees received to the artists and copyright owners.

PRS for Music

When a song or piece of music is written, the songwriter owns the copyright and is entitled to decide how and when it should be played. Music is released, allowing you and I to purchase a song, which we can play at home. However, if we play that song to a wider group of people (for example on your business or organisation’s premises) it is classed as a ‘public performance’. If you want to make a ‘public performance’ we must first seek permission from the copyright owner of that song before doing so. If you do not obtain the required licence you may risk infringing copyright. So, in nearly all cases, if you are playing copyright music written, published or arranged by a member of PRS for Music (or one of its affiliated societies) outside the home (or domestic environment), you will need to buy a Music Licence unless one of the exemptions apply (see below).

PRS for Music

PRS is a  membership organisation, existing solely to collect and enforce the collection of licence fees from music users, and distribute these as royalties to it members, being writers and publishers of music from the UK and abroad.

PPL

Whereas the author and music publisher owns the actual copyright in the lyrics and composition and this is administered by PRS for Music, PPL represents record companies and performers. Phonographic Performance Ltd (PPL) licenses rights similar to PRS for Music’s but in relation to the copyright in the performance and sound recording, which are owned by the performers and record company and administered by PPL.

As PRS for Music and PPL operate for different rights owners they have always remained as separate companies (although one day that may change for charities and non profit organisatons only). A pilot scheme was announced in late 2009 to introduce a dual PRS and PPL licence for non profit organisations and charities but this appears tohave been put on a back burner.

Who needs a PPL and PRS ‘Music Licence’?

A music licence is required for any premises where music is played and can be heard by the public. Although private homes are excluded (as long as the playing of music is solely for private purposes), the definition does include music performed within a business premises whether it is for the benefit of customers or staff or a club where music is played for its members.

Normally, the owner or manager of the premises is responsible for obtaining a PRS music licence and PPL licence. The playing of music includes use of radio, CDs, jukeboxes, MP3 players, television, video music, telephone systems or DVDs, as well as live music or recorded music from a music system or console.

What happens if you fail to obtain a music licence?

Failure or refusal to apply for one could lead to action being taken for copyright infringement on behalf of the copyright owner, which may lead to an award of damages (and costs) if judgment is awarded. Both PPL and PRS can claim for unpaid licence fees going back 6 years.  

What Types of Premises are Affected?

• Churches (church halls use for exhibitions, one off events) ·
• Halls · All Government Buildings (concert venues) ·
• Cinemas and Theatres ·
• Educational Establishments (music featured in school plays) ·
• Events and Exhibitions (museums, galleries) ·
• Health and Beauty venues (background music and TV) ·
• Holiday and Holiday Parks (holiday centres, discos, quizzes) ·
• Leisure Sport and Fitness locations (dance classes, aerobics) ·
• Offices and Factories (including telephone music on hold, waiting rooms, reception areas) ·
• Bars, Pubs and Nightclubs (dancehalls, nightclubs, discos)
• Restaurants and Cafés (one off events, jukeboxes, radio or background music) ·
• Shops & Stores (background music, listening posts/touch screen kiosks) · Social and Members Clubs (Bingos and other games) ·
• Public Transport (boats, coaches, ships, etc)

Exceptions:

Believe it or not, there are a few places, which, subject to conditions, do escape the obligation of PPL and PRS Licensing. PPL or PRS will not licence the use of sound recordings in NHS hospital wards, religious services or ceremonies, domestic use in care homes and in medical treatments taking place in NHS hospitals. Most non-profit organisations and Charities also escape having to apply for a PPL licence, until 1 January 2012, that is, when this exemption will be scrapped. The law was introduced on 1 January 2011, but charity shops and some other institutions will be exempt from the fees for the first year. A statement from the Intellectual Property Office said a charge of £40 a year would apply to 60 per cent of the buildings where voluntary groups met and that most charity shops would pay only £54 per year.

What About Working from Home?

PRS for Music does not usually charge a licence fee where:

• You have your home office in a private residence. That is, an individual working on their own in their home office with others who are permanently resident at that address. However, if you have colleagues who work with you (who live elsewhere) or customers/clients coming to see you (and music is played at these times), then this is not exempt and a licence fee is payable.
• You are a lone worker – workplaces with only one worker, where music is not made available to any visitors/customers at the premises.
• Personal Portable Devices – For example where your staff listen to music or the radio through personal headphones on an MP3 player. Whatever is being listened to should only be audible to the individual through a headset attached to their device and not to any other individual in the workplace.

How much does PPL/PRS Licence cost?

The size of the premises the licence is to take effect over, the number of persons who will be listening, the number of days in the year and the extent to which the recorded music will be used are the main factors which will determine how much your PRS and/or PPL will cost you. It would be unfair to charge a primary school or a small cafe owner, the same amount as the hosts of a major open-air festival.

PPL Refunds

Another bit of good news for business owners is that last year, the Copyright Tribunal published its decision that PPL should replace tariffs charged to public houses, bars, cafes and restaurants, shops and stores, factories and offices back to 2005 rates. In 2005 there was a massive hike in fees, by 400 per cent in the case of some large restaurants. This decision made on appeal has already allowed millions of pounds to be claimed back by licensees as the decision is retrospective (this means that licence fee payers can claim back the difference on fees paid since 2005 and the  amended, lower fee. To avoid PPL being deluged with claims however, you can only apply for a refund if you are owed more than £50.00. Nearly 100,000 premises have been affected. You ought to have been sent a letter by PPL if you are one of those premises due for a refund and also, information on how to claim a refund can be found on PPL’s website.

And Finally… How to Not to Pay PRS and PPL Fees

If you want to listen to BBC or commercial radio (playing PRS and PPL affiliated artists’ music) or play music at a venue/in the workplace, where members of the public, staff or work colleagues can also hear it, there is no way to avoid being subject to these licence fees. Depending upon how musical you are however, you might want to compose, record and play your own original compositions – as the owner of the compositions; no licence fee would apply in this case. Alternatively, in an office or factory (and where not incompatible with concentration or productivity), you could simply authorise individual employees and staff to use headphones with their own portable devices. Also there are music artists that are not affiliated to PPL or PRS. You will still have to pay a licence fee to some other licensing organisation but it’s normally much cheaper. There is even a specially formed royalty free music radio station out there, which was created to enable smaller business owners play background music for significantly cheaper annual fees.

As you can see this area of music licensing is very complex and you should not rely on any of the above as specific legal advice. If you have a specifc query or encounter a particular problem with PPL or PRS licensing, please contact Maria Guida at Silverman Sherliker LLP in our Property and Licensing Team, for further advice.