17th June 2008
Small firms that play music are being "harassed" by the Performing Rights Society (PRS), the Federation of Small Businesses (FSB) has claimed.
Under licensing rules, firms playing music that can be heard by multiple employees or members of the public must pay a license fee to the PRS, which collects royalties on behalf of recording artists.
But appearing on Radio 4's Today Programme, the FSB's Stephen Alambritis said that the PRS' current tactics were "unfair", and involved contacting small firms "out of the blue".
He explained that the federation understood the need for restaurants, cafes, pubs and bars to pay a license fee, but added: "It's the tiny business; the small garage with a little office at the back... whether they should be exempt."
"We've had businesses that have been trading for a century that have never heard of the PRS, we had one member that was contacted eight times in 10 days. So it's just the latest tactics by the PRS that we're concerned about," he said.
The FSB's objections echo those of the British Chambers of Commerce (BCC), which raised concerns about the PRS' tactics in December last year. At the time, BCC director-general David Frost called on the PRS to "tell people what the law is and why it exists before demanding money".
Responding to the FSB's claims, PRS director of communications Adrian Crookes denied that it was harassing firms.
"I think it's important to remember that the 60,000 songwriters and composers who are our members are small businesses themselves, so we're very, very sensitive to the pressures on small business," he said.
Small businesses 'harassed' on workplace music
Under licensing rules, firms playing music that can be heard by multiple employees or members of the public must pay a license fee to the PRS, which collects royalties on behalf of recording artists.
But appearing on Radio 4's Today Programme, the FSB's Stephen Alambritis said that the PRS' current tactics were "unfair", and involved contacting small firms "out of the blue".
He explained that the federation understood the need for restaurants, cafes, pubs and bars to pay a license fee, but added: "It's the tiny business; the small garage with a little office at the back... whether they should be exempt."
"We've had businesses that have been trading for a century that have never heard of the PRS, we had one member that was contacted eight times in 10 days. So it's just the latest tactics by the PRS that we're concerned about," he said.
The FSB's objections echo those of the British Chambers of Commerce (BCC), which raised concerns about the PRS' tactics in December last year. At the time, BCC director-general David Frost called on the PRS to "tell people what the law is and why it exists before demanding money".
Responding to the FSB's claims, PRS director of communications Adrian Crookes denied that it was harassing firms.
"I think it's important to remember that the 60,000 songwriters and composers who are our members are small businesses themselves, so we're very, very sensitive to the pressures on small business," he said.
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