Yesterday (October 22nd), the Copyright Tribunal published its decision in regard to the rate paid to music licensing organisation PPL, on behalf of performers and record companies, for the right to play music on TV's and and radios in public in the hospitality sector (pubs, bars, restaurants, cafes, hotels, shops) and offices & factories.

PPL had proposed a tariff, based on the principle of fairness, where larger establishments paid more than smaller ones. The Tribunal rejected　this and took the view that small pubs and cornershops should pay the same as large bars and shops. This is currently £100 per annum.　The result of the Tribunal's decision, therefore,　is that bars with a thousand drinkers will pay exactly the same as a　pub with a handful of regulars.

PPL are appealing this decision in the High Court.

UK Music shares PPL’s disappointment in the Tribunal’s decision and we universally support their appeal to the High Court. PPL’s proposal of a proportional tariff for the hospitality sector would have injected common sense into the licensing process. A one-size-fits-all blanket tariff of £100 does precisely the opposite, and will only dissuade smaller pubs and shops from playing music.

The decision also highlights another issue: namely, the urgent need to modernise the rules and structure of the Copyright Tribunal. As recommended by Government in April 2009, it is vital that the Tribunal’s procedure and staffing are properly equipped to deal with such disputes and therefore fit for purpose.