The UK government has amended the music licensing rules for not for profit organisations. The new rules will come into effect on the 1st January 2011 and will mean that many community buildings and village halls will require an additional music licence.
These changes will bring music licencing in line with the rest of Europe. Not for profit organisations using recorded music(records, tapes, CDs, radio but not live preformance) will need a licence from Phonographic Performance Ltd (PPL). These changes will provide remuneration to performers and record companies.
Currently no licence is needed and no royalties are payable to PPL when the public performance is beneficial to, or part of, the activities of an organisation whose main objects are charitable or are otherwise concerned with the advancement of religion, education or social welfare.
The not for profit sector comprises, amongst others, charities, community halls, uniformed youth groups, voluntary organisations, social enterprises, student union nightclubs and government and local authority buildings.
The law will be changing on January 1st 2011 but PPL is giving a grace period of one year for charities to allow them time to adjust to the new arrangements. Payment of fees will start on 1st January 2012.
No change to PRS licence requirements
Performing Rights Society Ltd (PRS) collects royalties on behalf of the composers and publishers of music. Management committees of village halls, community centres, church and similar halls run by voluntary organisations are obliged to ensure that a license from PRS is obtained if PRS controlled music is performed on the premises. This music includes records, CDs, tapes, radio, television or performers in person. Many halls already hold a PRS licence. The changes mean that in addition to a PRS licence they will also require a PPL licence unless only live music is performed on the premises.
Concessions achieved
The Community Sector Law Monitoring Group (CSLMG) has been fighting for a fair deal for small community charities paying music licenses for the last 18 months. They believe the change in licensing may affect thousands of small community charities’ activities such as tea dances for older people, youth clubs, children’s music and movement groups, fundraisers and fetes and festivals.
In their press release CSLMG welcomed the delay in implementation until 2012 as this at allows time for negotiations to continue and for the sector to argue for affordability.
David Tyler, chair of CSLMG said: “We are pleased that PPL accepted our proposals to reduce the costs for micro groups (those under £10,000) who will mostly pay £40 for each of the two licences [PPL and PRS] required. However, those earning just £50,000 a year will have to spend £1,000 on music licenses each year and the fees have no limit as they are a proportion of the group’s income. We think there needs to be a cap on what groups are liable to pay if we are to see more people coming forward to set up groups in their neighbourhoods.”
The concessions CSLMG have so far achieved are:
- A single scheme to collect the fees for both PRS for Music and PPL
- A £40 flat fee for groups with incomes under £10,000 a year
- The license will apply only to community buildings and most groups using the building would be covered by it
- The licence will cover the land immediately around the building and any vehicles the group may own