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The PRS (Music) Licence


                 HEADLINES

 

Play fair when enforcing music at work laws, says FPB
 
Small business owners, many of whom are paying hundreds of pounds so they can legally play music at work, are now able to complain to an ombudsman if they believe they have been treated unfairly by the Performing Rights Society (PRS).
 
Under the law, business owners have to pay if their staff or customers are able to listen to music played in a range of formats – including hold music recorded on telephones – even if this is not for commercial reasons.
 
The ombudsman was recommended in a consultation into the new PRS code of practice following a number of complaints from small businesses about the organisation, including less-than-courteous phone calls and unexplained price increases.
 
However, members of the Forum of Private Business (FPB) have reported they had no idea the service, which was launched in July 2009, existed at all.
 
“We have received call after call from concerned members complaining about their treatment at the hands of the PRS and the first they have heard about this avenue to air their complaints is when we tell them about it,” said the FPB’s Policy Representative Matt Goodman. “A PRS licence is a legal requirement and of course an ombudsman is a good way of addressing small business concerns but it is already difficult to accept yet another cost to businesses. Without a well-understood model such as the TV licence, the frustrations of many small businesses are only compounded by the lack of clarity and information.”
 
The FPB is concerned that the Society's guidance is badly constructed and confusing. There are over 40 price tariffs on its website, listing the many different costs of purchasing a licence, depending on various factors such as the size of a business.
 
In addition, many frustrated members have contacted the FPB’s member helpline to complain that often PRS staff themselves do not understand the pricing structure, and even appear to have an agenda to catch firms out.
 
The printer
 
FPB member Tony Wade owns the Otley-based Trade Labels Ltd, which supplies to the printing industry. After receiving a worrying call from the PRS he investigated and found he does not have to pay.
 
“Apparently, because only one person can hear the radio, we don’t have to pay but I can’t explain why,” said Mr Wade. “The system is completely confusing. When they initially called there was the assumption that we would have to pay, and I’m convinced they were listening to see if they could hear the radio in the background.”
 
He added: “I can only presume they are geared towards getting the maximum amount of money they can. I knew nothing about an ombudsman. I had never heard this was available, nor did any other business I’ve discussed the PRS with.”
 
The healthcare provider
 
The PRS licensing requirement has forced FPB member Chris Carr, of Hearing Healthcare Centre in Cambridge, to change the way he tests hearing aids.
 
“There has been no mention of an ombudsman in any of my dealings with the PRS,” he said. “The first call I received was fairly aggressive and I thought it was a spoof call at first. I used to use the radio to make sure the loop function on our hearing aids works. Now I can’t – it’s an inconvenience. We will be taxed for breathing next.”
 
The manufacturer
 
“I agreed to pay – listening to the radio is a necessity to morale up when you’re working in factories on repetitive tasks – but it seems an unnecessary cost we could do without,” said John Constantinou of Gold Brothers Ltd, a metalworker and wire product manufacturer in London. “I won’t say the person who called me from the PRS was a complete prat but the approach could have been better.”
 
“I was not aware of an ombudsman. Really, they should make sure everyone they contact knows about the service.”
 
The sign maker
 
FPB member Sue McAvoy owns Leander Architectural in Buxton, Derbyshire. Recently, the cost of her PRS licence increased from £217.97 to £339.39.
 
“I was gobsmacked it went up so much and I have not found out why, but it now works out at about £1 per day – it’s just another tax,” said Mrs McAvoy. “I had no idea I could have pursued this with an ombudsman. They should be more proactive in letting business owners know.”
 
To further confuse the issue, there is another organisation called Phonographic Performance Ltd, from which business owners might be required to obtain a licence.
 
This combination of factors means that many small businesses must rely on the PRS alone to make decisions about their music licensing.
 
To contact PRS for Music call 0330 440 1601 or 01925 532111 or email enquiries@prsformusic-ombudsman.org. Phonographic Performance Ltd can be contacted on 020 7534 1000 or at www.ppluk.com.
 
 
ENDS
 
 
Notes to editors
 
In one recent case, reported by the BBC, the PPS mistakenly told a shop assistant she was not allowed to sing while she stacked shelves. http://news.bbc.co.uk/1/hi/scotland/tayside_and_central/8317952.stm
 
The FPB helps owners and managers of small and medium-sized businesses to comply with regulations via its dedicated member helpline, 24-hour legal advice line, and Health & Safety Guide, Employment Guide and Credit Control Guide.
 
In addition, the FPB’s www.smallbusinesschannel.co.uk was launched in June 2009, providing a wealth of free video advice and information on a range of topics to business owners and managers.
 
Broadcast media – the FPB has ISDN capability and can provide comment, in quality audio, at short notice.
 
The FPB can also provide journalists with localised and sector-specific case studies.
 
The FPB is a proud supporter of the Children’s Cancer and Leukaemia Group (CCLG): www.fpb.org/charity
 
 
About the Forum of Private Business
 
A not-for-profit organisation, the Forum of Private Business provides a personal, friendly and highly tailored service to its members – with the primary purpose of helping them run their businesses more profitably.
 
With its wealth of business experience, the FPB’s team serves as a ‘trusted adviser’ – offering members the practical and timely advice they need.
 
The helpline’s team of experts not only provide guidance and information to members but also allow them to air their concerns and frustrations. The team also play a valuable role in giving members the opportunity to discuss ideas and options with a ‘safe pair of hands’.
 
Representing thousands of small businesses across the UK – including retail, service providers and manufacturing companies – the FPB is recognised by the Government as one of the six main business support and lobby groups. It uses this position to influence decision-makers in the UK and Brussels on the issues that matter to small businesses. Visit www.fpb.org.
 
 
Contact
 
Phil McCabe
Media and PR Manager

 (21/1/10)