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Phonographic Performance Limited

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PPL, formerly known as Phonographic Performance Limited,[1] is a UK-based music licensing company and performance rights organisation founded by Decca and EMI in 1934. As of 2008 PPL collected royalties for 47,000 performers and 3,500 record companies.[2]

Its field of operation is distinct from the Performing Right Society, now called PRS for Music, founded in 1914, which originally collected fees for live performance of sheet music.[3][4]

Information from PPL's website

PPL today licences recorded music and music videos played in public and broadcast on the radio, TV and internet. PPL then distributes the licence fees as royalties to its tens of thousands[5] of performer and record company members.

PPL issues licences to hundreds of thousands[6] of businesses and organisations from all sectors across the UK to play recorded music (including radio) and/or music videos in public. These can range from bars, nightclubs, shops and hotels to offices, factories, gyms, schools, universities and local authorities. PPL also licenses music suppliers to copy recorded music for services such as in-store music systems, jukeboxes, compilations for exercise classes and in-flight entertainment systems.

PPL also licenses TV and radio broadcasters to play recorded music as part of their programming, from the BBC, ITV, Channel4, Five and Sky to commercial radio networks such as Capital FM, Heart and Absolute Radio, as well as online services.

PPL does not retain a profit for its services. After administration costs, revenue generated from licence fees is passed onto its registered members as royalties for the use of their recorded music.

PPL is also responsible for the administration of International Standard Recording Codes (ISRCs).

The company is a founder member of UK Music, the umbrella organisation for the UK music industry. It also campaigns to uphold and strengthen the rights of performers and record companies both domestically and internationally.

In 2011, PPL collected £153.3 million of which £130.8 million was available as distributable revenue to its registered performers and record company members.[7]

Mission statement

PPL’s mission as stated by the company is to: “manage the rights and maximise the earnings from the broadcast and public use of recorded music and videos, and distribute them in the most efficient manner possible.”[8]

History

PPL was formed in May 1934 by the record companies EMI and Decca Records, following a ground-breaking court case against a coffee shop in Bristol.

The coffee shop, Stephen Carwardine & Co, had been keeping its customers entertained by playing records. EMI, then called The Gramophone Company, argued it was against the law to play the record in public without first receiving the permission of the copyright owners. The judge agreed, establishing this as a legal principle. Many would agree that it is highly doubtful whether the same judgement would have been made if the owner was prosecuted for listening to the radio in his private office ; hardly what common sense would describe as a public performance. EMI and Decca formed Phonographic Performance Ltd (PPL) to carry out this licensing role and opened the first office in London.

The Copyright Act 1956 led to the expansion of PPL's role to also cover the licensing of broadcasters that played recorded music. Further copyright law changes in 1988 strengthened PPL's licensing position.

Under the Copyright, Designs and Patents Act 1988, if recorded music is 'played in public'[9] every play of every recording requires the permission of the owner of the copyright in that recording (usually a record company). Record companies transfer their rights in recorded music to PPL so that PPL can issue licences to businesses and effectively give them the record companies' permission for their recorded music to be played in public. "In public" is taken as meaning more than one person within earshot. If someone said they had made a public announcement, and it was made to one other person, it would be ludicrous. However to maximise fund raising this is the definition the PPL chooses to use.

In 1996, performers were given the rights to receive 'equitable remuneration' where recordings of their performances were played in public or broadcast[10] – leading to PPL paying them royalties directly for the first time. Performer organisations PAMRA and AURA merged with PPL in 2006,[11] leading to an annual meeting and dedicated board specifically for performers.

VPL

VPL, created in 1984, is PPL's sister company and specifically deals with the licensing of music videos when they are played in public or broadcast on TV. VPL distributes the fees as royalties to its rights holder members. Although technically a separate company, VPL operates under the same management as PPL. All activities relating to music videos are conducted as VPL business.

Playing music in public

Music licensing for business

Any business that plays recorded music within PPL’s repertoire in public, such as a shop, bar, office, restaurant, gym, community building, not-for-profit organisation – or activities such as dance classes will need to have a PPL licence.

A PPL licence is required when recorded music, within PPL’s repertoire, including radio and TV, is played in public. There is no statutory definition of 'playing in public' (also sometimes referred to as 'public performance') but the UK courts have given guidance on its meaning and ruled that it is any playing of music outside of a domestic setting – so, for example, playing recorded music at a workplace, public event or in the course of any business activities is considered to be 'playing in public. No licence is required for listening on headphones. In contrast, any recorded music being played as part of domestic home life or when there is an audience entirely of friends and/or family (such as at a private family party) does not require a PPL licence.

A PPL licence gives the licence holder the permission to play recorded music from PPL's repertoire (the vast majority of commercially released music in the UK). Playing music that is not in copyright does not require a PPL licence.

Music licensing for radio broadcasting

PPL licenses radio stations based in the UK, Isle of Man and Channel Islands to use recorded music within its repertoire in all forms of radio, from traditional FM/AM broadcasting to satellite and online radio streaming.

Music licensing for television broadcasting

With the relevant PPL music licence, broadcasters can use recorded music within PPL’s repertoire and/or music videos in their programming with the permission of the performer and copyright owner.

Applications for music licences can be made online at ppluk.com[12]

Members

After administration costs, and certain contributions to anti-piracy activities and music industry charities (all of which are agreed by the membership at the Annual General Meeting[13]), all revenue generated from PPL licence fees is passed onto its registered members as royalties for the use of their recorded music. PPL members range from session musicians and emerging artists to major record labels and globally successful performers. It is free to join PPL as a member.

Record companies

Anyone who owns (or holds an exclusive licence to) the rights for when recorded music is broadcast or played in public in the UK can join PPL as a recording rights holder member. This can include major record labels, independent labels, self-releasing artists or companies that have simply purchased the relevant rights.

Performers

Anyone who has performed on recorded music can join PPL as a performer member. If an audible contribution has been made to a recorded music track, the performer could be eligible for royalties. This means anybody – from lead singers to choir members; rock drummers to classical musicians – that has contributed to a recording could be eligible for PPL royalties. In addition, certain inaudible contributions (such as a conductor) are also eligible.

Repertoire

A licence is required from PPL whenever recorded music within its repertoire is played in public or broadcast. PPL’s repertoire includes all recorded music owned or controlled by its direct members or by members of any of the overseas collective management organisations with which PPL has a reciprocal agreement.[14] PPL’s repertoire covers the vast majority of recorded music commercially available in the UK.

The difference between PPL and PRS for Music

PPL and PRS for Music are two separate independent companies and in most instances a licence is required from both organisations to legally play recorded music in public. While both companies licence the use of music and collect royalties for the music industry, they represent different rights holders and have separate licences, terms and conditions.

PPL collects and distributes money for the use of recorded music on behalf of record companies and performers. PRS for Music collects and distributes money for the use of the musical composition and lyrics on behalf of authors, songwriters, composers and publishers.

International services

PPL offers an additional optional service to both record company and performer members to collect revenue due to the members from collective management organisations in numerous countries around the world.

References

  1. ^ http://www.companieslist.co.uk/00288046-phonographic-performance-limited company no. 00288046
  2. ^ The work and operation of the Copyright Tribunal Page 6 Great Britain: Parliament: House of Commons: Innovation, Universities & Skills Committee - 2008 "One of the oldest is PPL (Phonographic Performance Limited) which was formed by EMI and Decca in 1934 and collects royalties for 47,000 performers and 3,500 record companies"
  3. ^ Globalization of Services: Some Implications for Theory and Practice - Page 174 Yair Aharoni, Lilach Nachum - 2000 "In 1997, a 'Music Alliance' joint venture was formed with the older performing right society PRS (founded in 1914) giving publishers a de facto overall control over both performance and mechanical rights collection (and distribution) in the UK."
  4. ^ Popular music and society - Page 39 Brian Longhurst - 2007 "The three types of right identified in figure 1.5 are sometimes further grouped into performing and mechanical. The Performing Right Society (PRS), which was founded in 1914, is the principal collecting agency for performing Right Basis for "
  5. ^ "PPL website". PPL. Retrieved 28 August 2012.
  6. ^ "PPL website". PPL. Retrieved 28 August 2012.
  7. ^ "PPL Company Annual Review 2011". PPL. Retrieved 28 August 2012.
  8. ^ "PPL website". PPL. Retrieved 28 August 2012.
  9. ^ "Copyrights, Designs and Patents Act 1988". Section 19(3). UK government. Retrieved 28 August 2012.
  10. ^ "Copyright, Designs and Patents Act 1988". Section 182D. UK government. Retrieved 28 August 2012.
  11. ^ "Company history". PPL. Retrieved 28 August 2012.
  12. ^ "PPL website". PPL. Retrieved 28 August 2012.
  13. ^ "PPL Company Annual Review 2011". PPL. Retrieved 28 August 2012.
  14. ^ "PPL website" (PDF). PPL. Retrieved 28 August 2012.