Date 13 March 2009
Their ongoing dispute with Youtube has brought PRS for Music (PRS) into the headlines. But just what is it that they do, and when might they come knocking on your door demanding licence fees?
When a single is released you can purchase it either in a shop or by downloading it online. As well as purchasing the song itself, you are purchasing a licence right to play the song in private at home. However, if you want to play that song to a wider audience, for example in your place of business for the benefit of your customers or even your staff, this is classed as a public performance. To lawfully play music to the public you need to obtain a further licence from the copyright holder of every song that you intend to play.
Contacting Michael Jackson every time you wish to play Thriller in your shop or café is not practical or cost effective, so this is where PRS for Music enter the fray. They are a not-for-profit organisation which collects licence fees from music users, and distributes these as royalties to writers and publishers of music from the UK and around the world. A PRS Music Licence grants you the legal permission to play millions of songs, saving you the time and money needed to gain permission from the music creators directly.
Part of the role of PRS is to pursue those who perform music in public without the appropriate licence. In extreme cases, this can involve PRS taking legal action against copyright infringers and seeking injunctions, damages and costs, although more often it is a bit more subtle than this. There are increasing reports of PRS cold calling businesses to ask them a few questions about their music habits. A couple of days later, an invoice arrives, and if it’s not paid it is promptly factored to a debt collection agency. A run in with the PRS is more likely to end in a County Court Debt Claim than a High Court Injunction.
As music writers and composers are seeing their income decline as a result of a decline in CD sales and the rise in music downloading (both legal and illegal), the PRS have been doing their bit to make up the shortfall. “The PRS has been ramping up its efforts to get money out of businesses, many of whom are simply not aware of the law. Due to the complete lack of information on the law many businesses are seeing this as yet another extra tax they have to pay. The PRS needs to tell people what the law is any why it exists before demanding money.” reports David Frost, Director General of the British Chambers of Commerce
What is classed as a public performance is wide ranging - playing background music in your shop or restaurant, playing the radio to your staff in your office or warehouse, having a television in the corner of your takeaway (even if you already have a TV licence), playing music to customers who are on hold on the telephone and pretty much anything you do with music online (such as playing background music on a website), are all classed as public performance. If you are using music in any of these ways without the relevant licence, beware, PRS could be hot on your heels.
If you or your business need advice on any aspect of Intellectual Property Law, including copyright infringement or debt claims by PRS for Music, my colleagues Robert Ryall and Nathanael Young in SA Law’s Commercial Dispute Resolution Department will both be glad to assist.
If you require any further information or assistance with any of the issues featured in this article, please contact us on 01727 798000.
© SA LAW 2009
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