SMALL BUSINESS BODY QUESTIONS WORKPLACE MUSIC ROYALTY
The Federation Of Small Businesses has called on for change of law so that employers don't have to have a licence to play music in the workplace.
As all you royalty fans will now, technically speaking any employer who allows music to be played on their premises - even if it's the radio - should have a licence to do so from those PRS people. Said licence is required because the 1988 Copyright Act classifies music playing in the workplace as public performance, and therefore subject to the public performance royalty. In theory PRS, representing songwriters and music publishers, could sue any company who allows music to be played on its premises without a licence.
Speaking to Radio 4's Today programme, the FSB's Stephen Alambritis said that many small companies were unaware of this rule until they got a call from PRS, adding that he thought the current law was too wide-ranging, and the licensing process too complex.
He said: "We have no problem with the PRS collecting money from restaurants, cafes, pubs and bars. [But sometimes a company will have a] radio that is essentially in a backroom for the boss, not intended for the staff but the staff may be within earshot - or there may be some customers within earshot. [Then] out of the blue our members are being harassed by the PRS". Basically Alambritis wants the law to be changed so that businesses only have to pay a royalty when a company is using music to create an atmosphere - say in a bar - rather than when certain staff members are listening to the radio while they work.
Needless to say, PRS spokesman Adrian Crookes defended the current situation, pointing out licences for employers started from £66 a year, not much more than a pound a week, and stressing the Society would never "harass" a small business. He told the Radio 4 programme: "I think it's important to remember that the 60,000 songwriters and composers who are our members are small businesses themselves, so we're very, very sensitive to the pressures on small business. And we wouldn't choose, for example, sole traders or people working in their home. [But] it is important to recognise the value that music adds to business and ensure that songwriters and composers who've made that contribution are fairly paid. There are studies that have shown that it improves productivity performance, raises morale, team-building".