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The real cost for the sound of music
Studies have shown that playing music in your hotel or restaurant can have a positive influence on customer activity. However, before pressing 'Play,' on their stereo systems, operators should be aware that if music is played in any location or premises outside of the home, it may be considered to be a public performance.
Richard Findlay outlines the pitfalls of spinning the discs without permission…
In October 2007, Kwik-Fit was taken to court by the Performing Right Society because of the volume at which their mechanics played the radio when working. The PRS said that as the music was played loudly enough to be heard by colleagues and customers, it constituted a 'performance', and therefore requires a PRS licence. This action is still ongoing but it illustrates the issues involved in determining whether a licence is require by law.
There are many instances where the playing of music for the benefit of customers or guests could constitute a public performance, and the Copyright Designs and Patents Act 1988 requires that artists are recognised and compensated accordingly when their music is replicated in a public place.
Qualifying situations include background tunes in lifts, customer toilets and bars, and even the telephone music played to a caller when placed on hold. It doesn't matter how such music is performed - radio, CDs, TV and DVDs or live bands are all protected under the terms of UK Copyright law - but to do so lawfully an operator requires the permission of the copyright owner for every piece of music being performed.
Obtaining such permission from each and every owner/artist would be a very onerous task, so the Performing Right Society (PRS), which deals with the administration of copyright, makes it easier to obtain the necessary permission by issuing PRS Music Licences.
The PRS is a collection society which exists to administer and issue licences on behalf of its members, and to pay royalties to them when their music is performed, broadcast or otherwise made publicly available. A PRS Hospitality Music Licence will allow hoteliers, restaurateurs and other operators to lawfully play a range of over five million songs in their hotel or restaurant, all of which have been written and published by PRS's members and those of their affiliated societies across the world. Payments received will then be distributed to composers and publishers.
However, operators should be aware of further costs which can be incurred if playing music through CDs or DVDs. An additional licence fee is also required for the sound- recording copyright, and such operators will require a licence from the Phonographic Performance Limited (PPL). Essentially, the PPL and PRS licenses administer two principal types of music copyright. The first type, which is protected by a PRS licence, applies to the composition, music score and lyrics, while the second applies to the actual sound recording itself, which will usually be owned by a record company and is protected by a PPL licence. PPL represents the recording industry, and the payment received by them will then be distributed to companies and performers. Moreover, anyone who wishes to play or show a music video in public will need to obtain a Video Performance Limited (VPL) licence, unless they are only showing music videos being broadcast by terrestrial or satellite channels.
If your business fails to hold the required licences, and any of these copyright organisations decides to pursue you, you may be liable not only for damages but also for the costs of any action taken. If that happens, the sound of music could prove to be very costly indeed.
This article has been edited from its original version. For the complete feature, please see Catering in Scotland magazine May/June 2008.
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