Charities and not-for-profit organisations can no longer escape from paying music royalty fees

Currently charities and not-for-profit organisations have enjoyed an exemption from the requirement to obtain a music licence from the Phonographic Performance Limited (PPL) in order to play recorded and broadcast music at events and in public places. The PPL collects fees for licences to play music in pubs, bars, restaurants, cafes, shops, offices and factories, for the benefit of music producers and performers.

The Government ran a consultation with music industry insiders, charities and other organisations, attracting over 100 responses, to examine the fairness of the exemption, following which it has decided to change the charging structure and remove the exemption from paying fees and replace it with a fixed annual fee.

Some of these changes come into effect in April 2010:

a new simplified licensing system for charities and not-for-profit organisations with a single form and point of contact;
PPL to consult with Community Sector Law Monitoring Group and the charitable organisations to agree an affordable tariff;
PPL will not charge for certain uses of music e.g. domestic occasions, hospital wards, divine worship and residential homes;
PPL to offer one licence for occasional use e.g. community halls;
Implement a ‘charities event’ discount;
No retrospective charges to be raised.

Whilst charitable and not-for-profit organisations may be unhappy with this change, the Government has defended its decision as balancing the rights of copyright music owners and those playing music in public.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the
accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

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