GRTU Malta Chamber of SMEs over the last weeks has been inundated with complaints and queries in relation to PRS Ltd imposing licensing and fees on businesses for playing music in their shop. It is evident that specific business sectors have become the target of PRS Ltd and their requests on Maltese businesses has increased drastically, the GRTU said in a statement.
Members report that the direction that is given to them by PRS is that if they refuse to make the license or remove the license they have to eliminate any kind of music from their premises and if this is not done legal action will be taken against them.
The Performing Rights Society Ltd (PRS Ltd) is a registered private company claiming to represent musicians all over the world. Having been recognized by the Copyright Board it has been collecting such fees over the years but recently it has been much more aggressive in its efforts to collect what it perceives as its dues.
The licence needs to be paid yearly and is applicable to all forms of music being played. This includes playing background music in a shop or waiting area, even if music is played from original CDs that have been bought and utilized in the premises only frequented by employees on the basis that music increases staff performance and improves morale.
The fee is far from being a standard one since it is calculated by PRS Ltd and the enterprise is sent a quotation, without recourse. The basis of the calculation is made on the square meters of premises, the type of premises and the nature and extent in which the music is used.
Turning on the television in commercial premises, playing music in a taxi, and even the ice-cream van jingle also require a licence. The licence fee could cost hundreds of euros and runs in the thousands for larger establishments. In the case of restaurants, fees could go up to Eur8.24 per seat/cover annually just for background music, excluding additional fees in cases of live performances and other.
GRTU is concerned as to how these 'approved' tariffs are drawn up. The calculation of these fees must be done in a transparent manner and be subject to scrutiny. The approval of such tariffs as well as future increases seems to be undertaken without any impact assessment on businesses and without any consultation whatsoever. It is also evident that the copyright board, which is the entity approving of PRS Ltd’s operation and fees, does not have a member representing businesses and retailers, who are the major stakeholders in this issue.
Business owners are very frustrated and are finding difficulty in justifying the needs for this hefty, yearly running cost and license when the country is moving in a direction where even the basic trade license is being removed to diminish the burden on business. In this digital age where music is borderless and is available to anybody through the smartphone enterprises are finding having to pay for the use of this music incomprehensible. Businesses in fact are already paying for both for the music and the technology and they work very hard to get clients and no law secures their enterprises’ viability.
Apart from this PRS Ltd is only one operator carrying out such work. More operators could apply with the copyrights board to represent musicians not already represented by PRS. Will Maltese businesses start receiving other quotes they need to pay?
GRTU has requested its members to forward copies of any related correspondence or invoices from PRS ltd to GRTU with immediate effect. GRTU has also written to the Copyright Board, which is part of the Ministry for the Economy, Investment and Small Businesses portfolio, to request an urgent meeting to discuss this matter.