With stress levels rising in workplaces over the last few years, it’s no wonder that music is seen as a perfect solution to ease the tension and lift staff morale.
Recent research by London-based performing rights societies Phonographic Performance Ltd (PPL) and the Performing Rights Society (PRS) for Music found that 62 per cent of employers positively believe they can influence the behaviour of employees through playing music, while 87 per cent of employees agree that music improves staff morale.
But before you reach for that DAB switch or press play on your Spotify playlist, remember that when it comes to playing music in the workplace, those same licensing companies represent the artists and composers of the music so require you to pay for the privilege!
The price tag for playing music at work can be hefty, and it’s long been a bone of contention for small business owners. Many think that by purchasing the music (including Spotify membership, Soundtrack your brand etc) they are covered. However, this may not be the case as you will also need a music licence from PPL PRS.
Who are PPL PRS?
PPL PRS are a joint venture between the UK’s two music licensing societies, PRS for Music and PPL.
Previously, businesses and organisations had to obtain separate music licences from both organisations in order to play or perform music on their premises. However, they have now come together to form PPL PRS Ltd and launch a single licence known as, TheMusicLicence.
So, what’s the difference between PPL and PRS? Why do I need to be covered both?
PPL PRS collect licence fees from UK businesses and organisations on behalf of their parent companies, PPL and PRS for Music.
PPL then distributes these music licence fees for the use of recorded music on behalf of record companies and performers, while PRS for Music distributes music licence fees for the use of musical compositions and lyrics on behalf of songwriters, composers and publishers.
If you are using music in your business, it is likely that this music will belong to both the PPL and the PRS repertoire, which is why you are required to be covered for both.
What does TheMusicLicence cover and how much does it cost?
TheMusicLicence covers you to legally play or perform the vast majority of commercially available music for employees or customers in your business through the radio, TV, other digital devices and live performances. This usually includes the use of ‘on hold music’.
The cost will depend on factors such as business type, the size of the area in your business that music can be heard in and how recorded music is used. To find out more go to www.pplprs.com.
What’s the worst that can happen if I don’t get TheMusicLicence?
If you play music in your business or want to include it in your product, you need clearance to do so from the owners of that music. If you do not obtain clearance for your use of copyright music, you could face legal action for copyright infringement and may become liable to pay damages and costs. The rates and/or charges applicable are entirely dependent on the nature of usage of the music and type of location where it is broadcast.
Are there alternatives to paying for TheMusicLicence?
There is an option to buy royalty free music to use, for example, on your hold music. And there are even royalty free radio stations, but whether these are to your taste – or any cheaper than a licence for your business would be – it’s really down to personal opinion.
And finally…
PPL PRS work to strict codes of conduct, meaning that they shouldn’t treat businesses unfairly. Usually you should be notified of a visit from one of their agents, and the first visit will only be an introduction rather than a pressured visit.
One particular bugbear businesses report is receiving calls from PRS for Music asking whether they play music in the workplace. If they answer ‘Yes’, they are then advised that they are liable to pay a licence fee and often this is backdated. As other members of staff may be answering the phones, you may wish to brief them not to answer any questions and to refer any such calls to yourself so you can deal with them. The Forum believes that companies should be given a choice about whether to continue playing music their workplace prior to further charges.
Also remember that business organisations, such as the Forum are more than happy to provide further advice on this and other issues and can feedback any issues a particular company may have had with either PPL PRS. The policy team has also successfully resolved disputes businesses have had with them
