Pubs could wait a year for PPL refunds

22-Oct-2009 - Last updated on 27-Aug-2011 at 06:36 GMT

Pubs are due a refund on music licence but may have to wait a year

Licensees could be forced to wait up to a year before they can claim back money from music licensing body PPL following a major legal ruling. The...

Licensees could be forced to wait up to a year before they can claim back money from music licensing body PPL following a major legal ruling.

The Copyright Tribunal has ordered PPL to make full refunds, dated back to 2005, to licensees after the British Beer & Pub Association and the British Hospitality Association won a victory in a dispute about fees for background music in pubs.

The trade bodies estimated that since fee hikes took effect in 2005, pubs and restaurants have paid £15-20m over the odds. At the time PPL raised tariffs for playing music in pubs, bars, restaurants and hotels by up to 403%.

Licensees will have to apply individually to PPL for their refunds based on their own calculations, or they can ask PPL to make the calculation on their behalf.

However, no refund under £50 will be made. The Tribunal also ruled that interest will not be paid on the refunds.

A PPL source said it could be "several months" before licensees can claim refunds as the group has appealed at the High Court, adding: "They won't get it this year."

Morning Advertiser legal editor Peter Coulson said licensees would have to wait "well into next year and it could be as long as 12 months". "It certainly won't be a Christmas present for licensees."

Brigid Simmonds, BBPA chief executive, said: "We will be doing everything we can to ensure that any appeal case is heard quickly, so that the matter of repayments can be settled as soon as possible."

Fran Nevrkla, PPL chairman, was "extremely disappointed" with the ruling. "The Tribunal has failed to have proper regard for the real value of music to businesses, ignoring PPL's extensive consultation with licensees."

What are the new costs?

New tariffs, set by the Tribunal will be brought into effect as soon as possible and implemented upon renewal of PPL licences. The Tribunal has allowed PPL only a 10% increase, plus RPI.

A pub playing CDs or radio with an audible area of just under 400 square metres would have paid £464.80 for its licence this year under the new PPL tariff. The Tribunal decision has reduced this to around £110.

Smaller pubs, with under 50 square metres audible area, and which play only traditional radios and TVs, will pay about £55.