The British Hospitality Association (BHA) and the British Beer and Pub Association (BBPA) have secured a victory against a High Court appeal over music licence fees, meaning pubs, restaurants and hotels who have paid over the odds since 2005 are guaranteed up to £20m in refunds.
Phonographic Perfomance Limited (PPL), the organisation that sets and collects fees for companies playing background music, appealed against the decision by the Copyright Tribunal last October ordering it to refund businesses who had paid high fees.
But in the High Court earlier today, appeal judge Mr Justice Arnold, dismissed PPL's appeal and ruled in favour of the BHA and BBPA.
Industry persistence
BBPA chief executive Brigid Simmonds said: "This could not come at a more important time for our sector as we struggle to come out of recession and will allow pubs to both claim a refund and pay less going forward.
“With so much at stake, our persistence in pursing this case has paid off. With the appeal behind us, and pubs already benefitting from the sharply reduced charges, we are now turning our attention to helping pubs to claim the long overdue refunds to which they are entitled."
BHA deputy chief executive Martin Couchman said the successful outcome underlined the importance of having strong trade associations to defend the industry's interests.
Future savings
In 2005 venues playing background music saw their licence fees rise between 200 and 400 per cent when PPL decided to limit the Copyright Tribunal’s jurisdiction to broadcast music only and have a separate tribunal for non-broadcast music.
Under the Tribunal’s ruling, fees will now be cut by more than half with a hotel, pub or restaurant playing background music within an audible area of just under 400 square metres paying £110 this year compared to £464.80 under PPL’s raised tariff.
All businesses whose refunds are worth more than £50 are entitled to payment from PPL under the ruling with the industry expected to receive up to £20m in refunds. Going forward, annual savings for the hospitality industry are expected to be about £5m a year.
Details of how to claim refunds will be released 'in due course' the BBPA said.