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As an owner of a single self-catering cottage in Cornwall I am being harassed by the Performing Rights Society who claim that I need a license as "rented accommodation" falls within their remit, which sound ludicrous to me. Can you help?

Answered by our Expert: Rehman Noormohamed - Michelmores LLP

Published: March 2009 

This is a topical question - at the time of writing YouTube's dispute with the PRS is barely out of the headlines and in the past 12 months MySpace, Pandora and Imeem are all reported to have had issues with securing licences.  As ever there are difficulties with producing a one size fits all response, but we set out some general information below and some contact details at the end so that you can get tailor made advice, if you need it.  In short and in this situation we would recommend that you investigate further before paying-up - we have heard recently of several small businesses being asked to take up licences in circumstances where none was ultimately required - all it took to resolve the issue was a quick exchange of letters with the PRS, but you will need to take action quickly. 

Background - the legal bit

A licence from the copyright owner is required by anyone playing recorded music in public.  There may be more than one copyright owner for each piece of music and amongst others the composer, the lyricist, the recordist and the performers will all have rights and be entitled to a fee.  The Performing Rights Society (PRS) "exists to help businesses and community groups get access to some of the world's best loved music, while making sure that songwriters, composers and publishers are rightfully rewarded"(1)  Instead of paying each copyright holder for each recording that is played, the licensee makes payment to the PRS who then make payments out to the holders.  The PRS is a not for profit organisation and putting it simply the aim is to make the system more manageable for the individuals on both sides. 

As well as the PRS which manages performance rights in music and lyrics, Phonographic Performance Limited (PPL) (www.ppluk.com) deals with performance rights in sound recordings and performances. It may be necessary to have a licence from one or both if you are making a public performance.

Making a public performance

The PRS advises (1) that music is performed "in public" where it is performed "outside what could be regarded as the domestic circle or home life".  More simply - if you are a business playing music to customers, employees or the general public (and arguably even if they can overhear it), then you are making a public performance.  This will include telephone hold music, piped music and radios - the net is cast widely here and the PRS in particular seems to be clamping down hard. 

The self-catering cottage

Self-catering units do not fall neatly into either the domestic or the commercial categories, judging by the responses we have received from the two organisations:

PPL advise that a self-catering cottage where no broadcast or other performance is made to staff or guests is exempt and a TV licence would cover use of a radio by guests at the cottage.  Good news for the questioner.  Sadly, the PRS may take a different view point - likening the cottage to a hotel and calculating the fee based on room numbers.  We do not have a full description of the questioner's operation, but presumably there is no public area, piped music or other broadcast in a small letting cottage, and on that basis the PRS interpretation does not seem to us to be realistic.   We cannot recommend that you rely on either viewpoint - further investigation would seem the sensible course here.  You will need to show that you are willing to provide full details of your operation and that you will negotiate in good faith if any licence is required.  If you do nothing and carry on playing music then you may incur penalties for non-compliance.  The other option is to do like YouTube - switch off the music until matters have been resolved.

Next steps

It is important to remember that every case will be different.  Sometimes the answer is clear; more often it is not.

The costs of obtaining licences are variable and if you are a small operator they may not be high.  It may be worth the cost to avoid the worry as well as the risks of non-compliance, if you do not have time to deal with the licensing authority.  If, like the questioner, you are being asked to take a licence and you are not sure whether or not you need one it is worth writing or speaking either to the PRS or the PPL or to both, setting out the exact circumstances, details of your visitors and employees and the type of music or other broadcast that you make.  In some cases - once you have done that - no further action will be required. 

If you would like any further information or advice on this or other copyright issues, please contact Michelmores LLP:

Rehman Noormohamed (Partner - Technology, Media & Communications Team) via email: rxn@michelmores.com

David Thompson (Solicitor - Technology, Media & Communications Team) via email: dit@michelmores.com

South West Tourism comment

We will be making contact with the Performing Rights Society in a view to setting up a meeting to try and gain more clarity on this matter. We will keep you updated on the progress.

1. Source: www.prsformusic.com