22/10/2009 - Shops to save on in-store music
Shops that play music could be in line for combined savings of £5 million a year and a £20 million refund, after a legal ruling found copyright charges to be excessive.
In order to play recorded music, shops, pubs and restaurants have to pay a licence fee to Public Performance Limited (PPL), which passes the money on to record companies.
Four years ago, PPL dramatically increased the fees, meaning some retailers found themselves paying double. One clothing retail group's bill rose from £176,000 to £408,000 a year, while a tile chain found itself paying £73,000 instead of £25,000.
The British Retail Consortium (BRC), along with its members, launched a legal battle to challenge the large scale of the increases. The Copyright Tribunal ruled that they were excessive and should be capped at 10%.
PPL said it plans to appeal but, if the decision is upheld, retailers stand to save £5 million a year as well as receiving back the £20 million they have been overcharged in the past four years.
Copyright © Press Association 2009
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