Music in your workplace? You may be liable to pay for it!

9 March 2009

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We have received an increased number of calls to our member helpline recently about the confusing issue of performing rights. Here we explain what your obligations are as a business and tell you how you could get a better deal.

Business owners have also reported receiving calls from PRS for Music asking whether they allow their staff to listen to music whilst working. If they answer 'YES', they are then advised that they are liable to pay a licence fee. However, many businesses still do not even know which type of licence they need.

According to PRS for Music, a tariff for 'music in the workplace' applies "to the mechanical performance of copyright music within the Society's repertoire as a background to work, meals, 'stand-down times' and breaks at work places such as offices, factories, canteens and rest rooms. It does not apply to, for example, telephone music on hold, or music at staff social or sports clubs, which are chargeable under the appropriate PRS tariff."

For more definitions and types of licence, visit www.prsformusic.com.

PRS vs PPL

To further confuse the issue, there are two organisations you may need a licence from. If music is broadcast, the general rule is that the business should be licensed by either or both of:

PRS for Music - Telephone: 08000 684 828. To find out more go to www.prsformusic.com. Once there, click on Music Users, then Play/Supply Music, then 'type of business' to obtain an example quotation. To obtain a licence contact the above number. You can pay for and obtain a license over the telephone in about 10 minutes.
Phonographic Performance Ltd - Telephone: 020 7534 1000. To find out more go to www.ppluk.com. Once there, click on Music Users, then Playing Music in Public, then select your 'type of business'. Next, click on the type of music you play, the floor area of premises and so on to find license fee payable. You can apply for and obtain a licence online.

Is PRS the same as PPL?

Both bodies licence music; however, they are not the same. Whenever a sound recording is played in public, there are two separate licence fees that are payable:

A copyright in the musical and lyrical composition.
A separate copyright in the actual sound recording.

One payment goes to PPL, which distributes it to record companies and performers. The other payment goes to PRS, which distributes it to composers and publishers.

If you play music in your business or want to include it in your product, you need clearance to do so from the owners of that music. The alliance of the Mechanical Copyright Protection Society (MCPS) and PRS represent the owners and can get you the clearances you need. If you do not obtain clearance for your use(s) of copyright music, you could face legal action for copyright infringement and may become liable to pay damages and costs.

The rates and/or charges applicable are entirely dependant on the nature of usage of the music and type of location where it is broadcast.

Important note: The fee payable may be reduced for certain licences if the business owner applies before he or she is approached by the societies concerned, or prior to the broadcasting.

Save money

The cost of a music licence for small business from PRS for Music has been halved to £44. However, there are some strings attached. This rate is only applicable for premises where music is audible to 4 or fewer workers. This can either be for music at workstations and in canteens or rest rooms, i.e. areas where music is not audible to customers or other visitors to the premises. Ring 0800 068 4828 for more information.

FPB Campaigns

The FPB is campaigning for a review of the legislation which brought in the powers to charge businesses for playing music. We are calling for an exemption for small firms who are not playing music for commercial gain. We are also campaigning for a review of the payment structure as the charges currently create a disproportionate burden on the smallest firms.

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Music in your workplace? You may be liable to pay for it!

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