PPCA Defend Lawsuit Against Small Business

The Phonographic Performance Company Of Australia [PPCA] have defended the cost of recorded music in Australia after they came under attack from the restaurant industry for taking legal action against a Melbourne restaurant.

PPCA collect money for the public performance of songs on behalf of labels and recording artists, but were criticised over the weekend by Restaurant & Catering Australia chief executive John Hart, who told The Age that the cost of PPCA's license for recorded music was “totally ridiculous”.

His comments came as PPCA began legal action against South Yarra restaurant The Greek Deli & Taverna, asking for a $60,000 settlement from the owner. They allege that the business has not paid its $12,795 license fees for over four years.

“The reality is that the PPCA licence catalogue is not that large and a lot of our members are looking at other options,” Hart said. “The fees they impose on us are just insane and I doubt whether they represent value in terms of a commercial return.”

Today PPCA's CEO Dan Rosen, who is also the CEO of ARIA, told theMusic.com.au that they feel music “adds significant value to a customer's experience when visiting a café or restaurant. We also believe that the cost of a PPCA Licence is extremely reasonable.”

Close to 1,500 licensors, including labels and artists, are registered with PPCA, which has representatives from Universal, Sony and Warner on it Board Of Directors. Venues have the option of playing the radio or music outside the PPCA catalogue if they don't wish to pay the fees.

Rosen said, “In most cases, daily PPCA licensing fees for an average café cost approximately the same amount as a cup of coffee or glass of wine, a price that is more than fair when an artist's music is being used to drive business.”

The cost of a license depends on the nature of a business and there are separate tariff categories for the likes of festivals, cinemas, cafes, hold music, public vehicles, sports arenas and conference rooms, among others.

The licences for restaurants and cafes depend on the average main meal prices. For a café with average main meal prices below $15, the PPCA license is capped at $4.14 per day, if alcohol is being served it rises to $5.22 per day.

Collected funds are calculated at the end of the financial year and distributed to copyright holders by December each year. Administrative costs and a 2.5 percent allocation to grants are deducted before the funds are shared.