Pubs could enjoy a major cut in the fees they have to pay for playing background music after a landmark legal victory in the High Court today.
The British Beer & Pub Association (BBPA) and the British Hospitality Association (BHA) were appealing against the decision of the government's Copyright Tribunal on the value of the fees that venues have to pay for recorded music.
Due to a fees hike in January 2005, some pubs' fees rose by around 400 per cent. And the BBPA and BHA estimates the average pub and and restaurant has paid an extra £500 - £600 over the last four years, a total of at least £12 million.
Royalty collection firm Phonographic Performance Limited (PPL), which sets and collects the fees, wanted to limit the Copyright Tribunal's ability to set a tariff on "broadcast music" only - coming from a radio or television.
And it wanted a separate tribunal for "non-broadcast music" - coming from a jukebox, stereo or MP3 player.
But the judge, Mr Justice Kitchen said this was "inconvenient, cumbersome, expensive, and would involve a waste of judicial and public resources".
This means after today's ruling that the Copyright Tribunal will be able to set one combined fee based on a pub that uses "broadcast" and "non-broadcast" music.
Rob Hayward, the BBPA's chief executive, said: "This is a victory for common sense in an extremely complex area of law.
"We now look forward to going back to the Copyright Tribunal, where we will do our utmost to secure a reduction in the fees which will give much needed financial relief to those licensees who are currently paying PPL well over the odds for music in their pubs."
BHA chief executive, Bob Cotton, added: "We are more than pleased to have been able to deliver this result for our members, which raises the real prospect of reverting the charges for the playing of background music to a much more sensible and sustainable level."