I really have no idea where the information people give out comes from. PRS (and PPL) do indeed take action and recover what people have avoided. Please - let's not go off on one again, everyone has their own view on what should be paid for and what should not - but ALL the recognised dance associations provide their members with advice on music licensing, and as the OP said, they have to play the music people need to listen to.
The piece on it being voluntary is just how the facts are presented. It is NOT a criminal offence, so the law does not say you MUST pay. It does however, allow the rights holder (or their representative - as in PRS & PPL) to recover the amount that should have been paid, and now that the county court system is available on-line, it's a simple job to take people to court. In most cases, PPL and PRS attempt to negotiate and not do this, but resy assured that if the amount in question is high enough, they will. They do do deals where people have mistakenly messed up. I know a theatre that was bought by a private family firm. They took out a PRS license, got the stickers and were happy for ten years until one day PRS discovered the premises wasn't just a bar and amusement arcades, but had a theatre! A very different license - where PRS get a percentage of the box office income. A genuine mistake by green people - they did NOT get charged 10 years back fees, they just had to start doing it properly.
In general, dance is done properly, especially if they start doing more than just leisure activities.
PRS and PPL are easy to talk to. Advice to not pay is pretty stupid really. It's not optional, it's not really voluntary, but you do have a choice. Some people take this to mean it doesn't have to be done. The police are not going to arrest you, but the people who own the music (remember that even if you buy a CD, all you own is the plastic, and the music is NOT yours - all you have is permission to use it for domestic use) do have the right to do something about it.
alasdair and smo are just mistaken in their interpretation. The courts DO find for the copyright holders - but you don't get a criminal record, just a county court judgement against you, and if you then don't pay, in come the bailiffs.
I fail to see why so many people expect music to be free.
For years and years every record, then CD has had a copyright notice - If one artiste can sue another for using a bit of their recording without permission for millions - then if copyright was unenforceable what would be the point?
A small dance class is unlikely to be able to afford to defend a case, if it did get silly and end up in court. Just to make certain people know they do take people to court - here's an example from last year. They don't do it very often, preferring to negotiate, but they will. Low level county court is easy - but this one went to the High Court!
High Court Judgment: Remix Bar, Woking and PRS for Music
1st March 2012
PRS for Music welcomes the judgment of the Deputy High Court Judge, Kevin Prosser QC, in the case against Remix Bar in Woking, and the Judge's positive comments about the organisation and the damages awarded. This is a victory for common sense, for all those businesses that have obtained and paid for licences to cover their music use and for the music creators that PRS for Music represents.
The music licence held by Remix expired in December 2008 and despite repeated attempts to ensure a correct licence was in place, PRS for Music ultimately had to take legal action. Taking a customer to court is alwa s a last resort and in thirty years this is only one of three cases to reach trial. This could have easily been avoided, saving the bar owners Alexander and William Burns - one of whom is a music DJ himself and creator of music - both time and money.
The Judge's findings and the damages awarded reflect the seriousness of the infringement and the continued resistance of the Defendants to comply with their contractual and legal obligations. The legal action PRS for Music took was necessary to protect and defend the rights of its members and to echo the words of Kevin Prosser QC, "In order to protect its rights and the interest of its members, PRS must investigate whether music is being performed without a licence, and also whether licensees are performing music in public in excess of their declared usage. As a last resort, PRS brings legal proceedings for non-payment of royalties and for infringement of its copyright."
Keith Gilbert, Director of Public Performance Sales at PRS for Music, said: "Although taking legal action is never our preferred option we were forced down this path by the owners of Remix Bar who repeatedly evaded their obligations to pay for the music used. I'm delighted the court found in our favour and am heartened by the recognition of why PRS for Music had to bring legal proceedings. Our role is to protect the rights of our members; ensuring businesses that wish to use music can do so easily and are correctly licensed."