The PPL provision II: PPL secures not-for-profit levy

Christmas is over – and from January 1st 2011 Phonographic Performance Limited, the record and recording artists collection society, have secured the removal of an exception in music licensing rules which enables PPL to collect from charities and not-for-profit sector. The sector had enjoyed an exemption from the Copyright Designs and Patents Act 1988, although this did not include an exemption from PRS payments which are collected on behalf of publishers and songwriters. PPL has extensively lobbied to have the exemption for music use in village halls, community halls, student nightclubs and council buildings to be removed and bring the UK in to line with European law (the European Copyright Directive and the Copyright and Related Rights Regulations 2003) and provide remuneration for performers and record companies. PPL and VPL chairman and chief executive Fran Nevrkla told Music Week “From a business point of view the countless artificial exceptions and exclusions in existence gave the excuse to many licensees to avoid payment for use of sound recordings” and Nevrkla added, “On my part I was not prepared to accept a situation which meant that the rights of our constituents, both the performers and the record labels, were being constantly downgraded”. New tariffs have yet to be set and the number of organisations that will require a licence unknown, PPL’s Director of Government Affairs, Dominic McGonigal, says it is impossible to calculate how much PPL will collect from the sector in the future following the changes. There will also be a year’s grace period and during this period PPL and the charity sector will sit down to negotiate rates and how the scheme can be implemented. Music Week say that it is already envisaged that there will be a blanket licence for some village halls and community centres and small charities using these facilities will, therefore, not need to obtain a separate licence. Performers who receive payment can choose to donate their revenues to charities of their choice

PPL will continue not to license the use of sound recordings in NHS hospital wards, religious services, domestic use in care homes and in medical treatments taking place in NHS hospitals

http://www.musicweek.com/story.asp?sectioncode=1&storycode=1043770&c=1

http://www.ppluk.com/en/Music-Users/Information-for-Charities/

http://www.prsformusic.com/SiteCollectionDocuments/PPS%20Tariffs/CB-2010-04%20Tariff.pdf

Collecting from charity to be balanced against collecting for charity

"New deal agreed on music licensing system" is the exciting news contained in a press release issued earlier this week by the UK's Intellectual Property Office (IPO).  You'd never guess from this title what the deal was about unless you worked for the IPO, though. According to this missive,

New deal: but who is giving to whom?

"The Government has helped broker a new deal between charities and music creators on the music licensing system. From now on, a public venue, including those used by a charity or not-for-profit organisation, where music is played from records, CDs, the radio or television will now require a licence from both PPL and PRS for Music. These organisations collect and distribute royalties on behalf of copyright holders such as composers, lyricists, music publishers, record companies and musicians. The new system will be fair for both musicians and charities. Those involved in creating music will be rewarded for their work while a package of measures have been agreed to protect charities from excessive costs.

In July 2008 the Government carried out a consultation into amending this legislation. In November last year the then Government responded to the consultation by saying it would reform the licensing system. This was followed by more than 18 months of negotiations with PPL and charity representatives. Since May this year it has been agreed that:

* Charities will be exempt from paying for a PPL licence for the first year giving them 12 months to prepare for the change;
* The lowest tariff of £40 a year has been extended to cover more than 60 per cent of the buildings where voluntary groups meet instead of only 30 per cent of buildings;
* The licence for community buildings has been extended to cover outdoor events like village fetes and carnivals;
* The vast majority of charity shops will pay the lowest tariff of £54 a year;
* The charity shop licence will cover back offices as well as the shop floor;.
* Charities will not face more red tape and bureaucracy. PPL and PRS for Music will create a single licensing system so organisations will only have to make one application. .. "

A statutory instrument ending the exemption has now been laid before Parliament. According to Minister for Civil Society Nick Hurd:

"We have worked hard to ensure that charities, particularly small organisations and charity shops, get extra protection and that the impact of any changes is minimised.  It will be difficult to satisfy everyone but we have achieved a fairer balance between the need to reward musicians for their work and the need to protect charities from excessive costs and additional bureaucracy. In addition, we hope that the agreed delay in implementing these changes will give the whole sector time to prepare and will allow discussions to continue."

Charities and not-for-profit organisations will not begin paying until next year allowing time for further discussions.  A new way to address complaints is also to be created by PPL and, if organisations believe they have been treated unfairly, they will be able to appeal to a new independent reviewer. PPL will operate the same voluntary exceptions as PRS for Music - at family occasions such as weddings, religious services, on hospital wards and for medical therapy.