INTRODUCTION

This document is designed to provide helpful guidance to the BII members, who have been approached by either the PPL/PRS or MPLC or both for collection of unpaid licence fees. This guidance note provides members with background information on the PPL/PRS, MPLC, the requirement for a relevant licence and some help pointers on what to do if you are approached by either of these organisations or their legal teams. The main point to note is that these organisations are legitimate organisations and are unlikely to be scammers, however, caution should also be displayed when communicating, if approached.

WHAT IS IT?

PPL

Phonographic Performance Limited (PPL) is an organization, who represent record companies and producers, which provided licences on behalf of copyright holders for the use music. A PPL Licence is required for the use of recorded music where it is played in a public space. PPL covers music which is played in a premises (over a sound systems or live/recorded performances), broadcast on radio or TV, or used on the internet.

PRS

The Performing Rights Society (PRS) is the organization, held a similar role as the PPL, but which represented song writers, composers and music publishers. Historically this organisation collected licence fees on behalf of the above members of the music industry in respect of copyright royalties.

THE MUSIC LICENCE

Until recently (February 2018) the PPL and PRS were separate organisations, and use of music required separate licences, however the two organisations have now merged under a joint venture and a singular licence can now be purchased. This licence is called “The Music Licence”.

DO I NEED IT?

Under the Copyright, Designs and Patents Act 1988 (the Act), permission is required from the relevant copyright holders (i.e. those people who create music or own the relevant rights to it) in order to play or perform music in a public space. This consent is called the Music Licence. Under the Act, a public space is likely to include a pub, bar, restaurant or nightclub. By obtaining the Music Licence, you are then ostensibly given permission to play a majority of the commercially available music within your premises. This variety ranges from grass roots acts and independent artists up to the biggest names in the music business.

In terms of a performance in the public, this will include any presentation of music outside of a domestic setting and will include playing music via any device including the radio, TV broadcasts or other audio visual content containing music or putting on live performances of music.

You may also need the music licence if you are using the TV to play sports, as sports do feature elements of music during commercial breaks. This would be required even if you hold a valid TV licence.

If you have already purchased music, either a CD or digitally (via Spotify or iTunes) and you are playing this music in a public performance, then it is likely that you need to purchase the music licence, as the permission granted for this purchase is likely to be restricted to provide use.

MPLC

WHAT IS IT?

Motion Picture Licensing Company Limited (MPLC) is an organisation which represents the rights of audio visual content holders whether this being films or TV shows (DVD, Blue Ray) download streaming, broadcast television, ATV and video on demand which are being viewed in a public performance.

Like the Music Licence above, MPLC licences are for public exhibitions where an audience is viewing content in a public location which includes bars, pubs, restaurants and hotels.

DO I NEED AN MPLC LICENCE?

If your premises is showing TV shows, DVDs, films or television via the internet then you may be required to purchase an MPLC licence. However, the type of licence and the fee for that licence may vary depending upon the type of viewing (e.g. whether this is background/incidental showing).

If you have accommodation in your premises and you are broadcasting television within each room then you will likely be required to purchase an MPLC licence for each room.

However, an MPLC licence is not needed if the premises’ showing is restricted to sports, news or music channels (however see the Music Licence above), but you may need the appropriate licence for screening live sport on non terrestrial channels (e.g. SKY).

DEALING WITH APPROACHES FROM PPL/PRS OR MPLC

If you are approached by either of the above organisations, it is important that you control the flow of information. Any operator should nominate a senior person to deal with the request for information or for payment from either organisation or their lawyers, to ensure that the information that is being provided is correct and consistent. We would advise against less knowledgeable employees providing information, as they may provide inaccurate information which may affect whether a licence is required or alternatively the fee in which is payable. Operators should advise their employees that any relevant communications from the above organisations is to be directed to the nominated senior individual.

If members are approached by any of the above, operators are encouraged not to panic or be pressured into giving inaccurate information. Operators should engage in a dialogue with the above organisations if approached and state that they will be prepared to pay what is properly due once they have had the opportunity to collate and review all the relevant information. Members are advised against ignoring these communications.

If an operator is faced with a dispute over a licence fee or if indeed a relevant licence is required, then they would be urged to seek specialist legal advice early on in the proceedings