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Notice to Customers regarding the implementation of a Modified Tariff LP.

Notice to Customers regarding the implementation of a Modified Tariff LP.

You may be aware that on 15 May 2018 the Copyright Tribunal approved the terms of a Modified PRS Tariff LP – the tariff under which PPL PRS Ltd licenses “light and popular” live music events.  This email is to notify the relevant customers of PPL PRS Ltd that the terms of the new tariff will be effective from 11 June 2018.  Tariff LP events for which the General Sale of tickets begins on or after 11 June will therefore be licensed under the Modified Tariff LP terms.  The full terms can be found here.

The key amendments to the tariff 

    The royalty rate for Concerts and all other live music events (except Qualifying Festivals) within the scope of the Modified Tariff LP, will increase from 3% to 4%* 
    The royalty rate for Qualifying Festivals will decrease from 3% to 2.5%*

*A higher charge in both instances (4.2% and 2.7% respectively) will apply where the licensee elects not to account to PRS for Music in respect of all booking, administration, service, handling or like fees and charges incurred by the consumer as part of the price of admission to the live event. 

    The minimum event charge will decrease to £15 (and be waived where music reporting requirements are met).

Why Tariff LP has been Modified

The live music sector has changed dramatically since 1988, when the current tariff was set by the UK Copyright Tribunal.  As a membership organisation, PRS for Music has an obligation to ensure that its licences are fit for purpose - and in respect of Tariff LP that it recognises the valuable contribution the songwriter and publisher members of PRS for Music make to the live music industry. Therefore a consultation exercise about the terms of Tariff LP was launched in April 2015.  The consultation was undertaken with PRS for Music members, licensees, stakeholders and the representative industry bodies in the live music sector. 

This consultation was followed by an extended period of negotiation with the key representative bodies in the live music industry about revising the terms of Tariff LP.  The representative bodies included the Association of Festival Organisers (AFO), Association of Independent Festivals (AIF), British Association of Concert Halls (BACH), Concert Promoters’ Association (CPA), Glastonbury Festivals Limited, Music Venue Trust (MVT), National Arenas Association (NAA), Society of London Theatre (SOLT), and the UK Theatre Association.  Agreement was reached with the representative bodies and in July 2017 the terms of an agreed Modified Tariff LP were submitted to the Copyright Tribunal for approval. The Copyright Tribunal approved the terms of the Modified Tariff LP in an Order dated 14 May 2018.

What happens next
 

The terms of the Modified Tariff LP will apply to the licensing of light and popular live events for which the General Sale of tickets began on or after 11 June 2018.  If you have any questions regarding the Modified Tariff LP, you may find it helpful to read our Frequently Asked Questions here.  If you would like to review the full terms of the new Tariff, you can view or download the Tariff document here.

For  further information, contact the PPL PRS Ltd Live Music Team on 02083 381 407.

Steve Heap: 7th Jun 2018 11:49:00

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