Music Licensing

Lord Smith of Hindhead Excerpts

Thursday 13th June 2019 Lords Chamber

Asked by

[Lord Smith of Hindhead]

To ask Her Majesty’s Government what recent discussions they have had with Phonographic Performance Limited regarding that body’s increasing of the tariff for their Specially Featured Entertainment licence from July 2019.

[Lord Smith of Hindhead (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In so doing, I make reference to my interests set out in the register.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Henley) (Con)]

My Lords, the Government have had no discussions with Phonographic Performance Limited about this tariff. Collecting societies are private commercial organisations, and the Government play no role in setting their licence tariffs. However, dissatisfied businesses may have recourse to the Copyright Tribunal, a specialised court that adjudicates on the price and terms of copyright licences. I understand that the British Beer and Pub Association and UKHospitality intend to make reference to the Copyright Tribunal on this issue.

[Lord Smith of Hindhead]

I thank the Minister for his reply, and I am pleased that this matter has been referred to the Copyright Tribunal since my Question was tabled. It is estimated that the proposed new tariff will cost the hospitality industry an additional £49 million each year—an increase that is simply unaffordable for many operators. PPL collected £250 million last year and raked off £35 million in admin fees, paying its CEO over £750,000. Does the Minister agree that a better way to provide increased payments to copyright holders is for PPL to cut its own expenditure?