NEWS RELEASE
10th July 2007
BETTER DEAL FOR ARTISTS ORDERED BY COPYRIGHT TRIBUNAL
Australian recording artists and record labels will receive a better deal when their music is played
in nightclubs and at dance parties following a decision handed down today in the Copyright
Tribunal.
The Tribunal has approved an application by the Phonographic Performance Company of Australia
(PPCA) for an increase in music licence fees paid to artists and record labels by dedicated
nightclub venues and commercially organised dance parties.
In the first comprehensive review of this tariff ever undertaken by the Copyright Tribunal, the
Tribunal has lifted rates for licensed sound recordings played in nightclubs from 7 cents per person
to $1.05 cents per person. The dance party rate rises from 20 cents to $3.05 cents per person.
The decision follows a two week long case before the Tribunal (headed by a Federal Court judge)
which heard expert economic evidence on the value of the licensed music played in nightclubs and
at dance parties.
The Tribunal found:” The object of the tribunal in approving the proposed scheme is to fix upon a
licence fee that can be regarded, as nearly as it is possible to estimate, on the basis of the
evidence …as the fair market price for the privilege of playing the recorded music in respect of
which (PPCA) is able to grant a licence. If it be the fact that the market rate is 30 times the rate that
has hitherto been charged ..that is no reason why it should not now charge that rate.”
Responding to the decision, PPCA Board member and Mondo Rock musician Paul Christie said,
“An increase in these tariffs is long overdue and will help compensate artists who create the
product which is the foundation of the nightclub and dance party industries. Artists are entitled to a
fair day’s pay for a fair day’s work and this will go some way towards compensating us for our
creative output.”
Former drummer for the Go-Betweens and PPCA Board member Lindy Morrison said, “When we
lose a musician in Australia the public grieves. It reminds us that many of our recording artists have
very little finance to fall back on as they grow older. In my experience the community recognises
that musicians have been given a poor deal and that’s why these tariffs are important. Music
bestows a cultural bond between us all and artists should be valued for this.”
PPCA Chief Executive Stephen Peach said the decision was a pleasing step forward and
endorsed PPCA’s argument that recording artists and labels deserved a fairer return. “The music is
the key to attracting patrons and driving revenue in these venues. The Tribunal has recognised its
important role and accepted our evidence in support of a rate rise.”
“ This is a modest increase when considering nightclub operators typically charge $10.00 per
person for admission, $5.00 for a drink, $2.80 for a bottle of water and $2.00 to hang up a coat”,
Mr Peach said.
"The recorded works of artists and their recording companies have been undervalued in many areas
for far too long," said John O'Donnell, Chairman of the PPCA Board. "This decision goes some way to
addressing that and is very much welcomed by the artist community and record labels."
The new rates will not affect community events, weddings or family functions.
bar prices rising, news at 11.
wow
that's quite a steep rise, i wonder how it will affect things...
from 7 cents per person to $1.05 cents per person
Strange grammar there.
Big leap though! Probably justified.
also, question, do the authors/recorders of irritating pokie machine music get money what with it being broadcast in a public space?
paging capo3rdfret
So is it a rise from 7c per person per track to $1.05 per person per track???
If so, wouldn't this mean that on an average night at a pub/club/bar when say between 8pm and midnight a person was present for on average 12 songs per hour, meaning 48 songs over that 4 hours, the increase in licensing fee is from $3.36 to $50.40???
bar prices rising to $20 a beer, news at 11.
bar prices at dance parties rising to $60 a beer, news at 11.
It must not be per person per track but rather just per person.
This is surprisingly big news- it made the news ticker on Channel 9 this morning, and page one of the Age.
Note related bouncer story, too.
they changed the calculation concept to include capacity etc.
its just an absolutely ridiculous hike. this is going to have a big impact for all clubs and venues in australia.
i want to know how they plan to delegate the collected funds back to the artists, too.
djs submitting set lists?
This is interesting- from the Age piece:
''The nightclub industry fears the increase will send many clubs broke. Clubs Australia executive Anthony Ball said that it could even make dance parties too expensive to run for some operators.
''The increase from (almost) eight cents per person to $1.05 … is astronomical, it's over 1000 per cent,'' Mr Ball said. ''It will see clubs that provide discos and dance nights withdraw their services in suburban and regional parts of the country. They might just decide it's all too expensive.'' Likewise the Australian Hotel Association. ''We're a bit stunned by the size of the increase,'' said the director of national affairs, Bill Healey. ''It will be very difficult for some to stay in business, but it might open the door for some live music.''''
yeah becuase the APRA fees aren't more expensive..........
le disco, please see the ppca site for the distro rules. Lindy Morrison as the artist rep on the board fought very hard to get performer (not songwriter) royalties for PPCA.
it isn't a huge hike when you compare how woeful the rates were internationally before.
Pardon my ignorance, but does this mean that songwriters/recording artists will get more money for having their records spun?
Ohyeah, is it per track per person or just per person?
Hahahahaha... musicians can't read!
IT'S PER PERSON PER NIGHT
This is a joke. They gave them everything without listening to the other side.
Don't forget that your band have to be registered to receive it. Its a record company benefit.
And you wonder if the accounting of the PPCA is anything like record company accounting.
I've had people contact me previously about doing things outside of PPCA.
If I now run a live venue I would only play music that was non PPCA registered so as not to incur the charge.
Live music might get a bunk up from this.
Will bands jam all night on the latest hits.
Covers bands might make a comeback.
Or will Australia spawn bands like The Roots able to play live grooves.
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and then that company can pay apra for playlists each year as well. seems the only benefactor of such an arrangemnt is apra....
pubs/ nightclubs, SUCK IT UP put another pokie in.
re creative commons, couldn't be used as the copyright works would be used for a commercial purpose which is outside of creative commons license, plus you would need recording, lyrics ad musicial work in creative commons (although apra take care of last two). the only ''free'' sound recordings are old out of copyright ones, and frankly they are rather limited repirotre after us and aust increased term of copyright.
Aaaaaand, not one mention of the live music side of it. Onya guys.
I don't think it's as easy as ''suck it up'' when it comes to pubs/clubs. Surely the recent demise of Pubboy demonstrates that?
Pub/club numbers of pokies are only going down if the public debate is to be believed at the moment (plus significantly increased pokie tax in NSW)
pubboy schmubboy
it has nothing to do with it, that was bad busines leading to liquidation.
honestly, i don't understand what the uproar is, the amount paid for performance of sound recordings in australia is pathetically low and arcaic, pubs/nightclubs have been on a good wicket for a LONG time. just like the price of beer, economics change, the cost to provide goes up. so does cheap entertainment like sound recordings. worse comes to worse, put a jukebox in that gets over used so much that the songs requested don't get played aka judgie and gaslight, use that money for PPCA.
also the PPCA should not be paying for major's membership fee for mother lobby group OS, that should come out of their own fuckin' pockets, then more money would go back to performers on sound recordings.
Didn't know it did - does it pay IFPI dues? Surely that's ARIA's role, PPCA is supposed to be a collection society not an industry lobby.
benjamin i will find out the acroymn when i'm back sydders side
No pokies at the Hoey anymore.
the staff must be gutted
i am doing this at the moment bv, are you sure there is nothing out there like it?
Nightclub operators sought judicial review of the Copyright Tribunal¹s confirmation of the licensing scheme referred by PPCA.
The Full Federal Court has dismissed a claim that the Tribunal made a jurisdictional error in questioning the value of ³music in nightclubs² as distinct from ³music in nightclubs for the purpose of dancing².
Australian Hotels Association v Copyright Tribunal [2008] FCAFC 37 (13 March
2008)
Reported at http://www.copyright.org.au/u28178
GYM'LL FIX IT: PPCA WANTS HIGHER RATES FOR FITNESS CENTRES
The Phonographic Performance Company of Australia (PPCA), which represents the interests of recording artists and labels, wants commercial gym classes to pay more for its use of recorded music. It has proposed to the Copyright Tribunal a new rate of $4.54 per month, or 99 cents per casual visit. Currently, a gym pays 96.8 cents per class. This will not apply to community groups or classes held in schools, church halls or rehabilitation centres.
PPCA chief executive Stephen Peach said in a statement, ''There is overwhelming evidence that music in fitness classes provides crucial motivation, improves people's workouts, creates structure for classes and adds atmosphere. All of this means that music plays a key part in attracting regular fee paying members to fitness centres and adds significantly to their bottom line. We are simply seeking a fair return for labels and artists who create the music. That return should be in line with the value that music delivers to this booming sector.''
Peach says that the $1 billion-a-year fitness industry in Australia — which he says has an annual growth rate of 10 to 15 per cent, and on average charge $768 for annual membership — could absorb these costs without passing them on to their customers.
Mondo Rock's bassist, and a PPCA board member, added, ''Artists believe their contribution should be recognised and they should be properly rewarded when their music is played during fitness classes. At the moment the music tariff for a whole class is considerably less than the $2 ($1.81) cost of hiring a towel at the gym which is simply not fair.''
There was no immediate response from the commercial fitness industry.
The Copyright Tribunal which is headed by a Federal Court judge, will gather evidence from all parties through the year. A decision is expected next year.
The PPCA recently won a two-year battle to increase license fees paid by nightclubs from 7 cents a patron to $1.05 by 2012.
i just read something interesting - this price hike can be avoided by switching to totally American records, because you dont have to pay the PPCA squat for American content.
seems like a pretty easy avenue for most venues...
Music off the menu as licensing row heats up
Jacqui Taffel
August 4, 2009
THE fee paid by restaurants and cafes for background music is due to skyrocket if a new licensing proposal goes ahead.
For Stuart Knox, the owner of the 55-seat Fix St James restaurant in the city, it means his annual licence fee would rise from $69 to more than $5500.
‘‘For that sort of fee, I’d prefer to buy my customers an iPod each and they can listen in private at their table,'' he says.
There is widespread concern in the restaurant industry that new tariffs suggested by the Phonographic Performance Company of Australia will make the cost of playing music prohibitive.
The company collects fees for recording artists and is reviewing its licensing arrangements with various sectors, including shopping centres.
In June it sent letters to about 10,000 restaurant and cafe licence holders. Instead of the former flat rate based on the venue’s seating capacity, the new rate is based on the average cost of a main meal, the number of meal sessions and the liquor licence status.
The company’s chief executive, Stephen Peach, believes the changes are conservative and long overdue. Studies in Australia and overseas show music can contribute an extra 10 per cent to revenue, he says.
Restaurant licence holders have until August 20 to respond. So far feedback has been overwhelmingly negative.
If the increases go ahead, Knox’s response at Fix St James will be simple. ''In an industry struggling to [reach] an average of 2 to 3 per cent profit, you’d just pull the music,'' he says.
Milan Strbac, a part-owner and chef at the Sugarcane restaurant in Surry Hills, has just paid the annual music copyright bill of $68 but said he would avoid paying $5500.
‘‘[Good music] creates atmosphere; it creates a vibe in the restaurant,’’ he said.
‘‘I would have to look at different avenues and ways we could maybe get around it. We might even look at live music.’’
dowp, beaten by that much...
what a silly idea.
any restaurant owners reading - you can play any tenzenmen releases anytime you like for free. ok? cool :-)
From TheMusic . . .
''PPCA TO ANNOUNCE LEVY ON FUNERAL MUSIC AFTER GYMS & RESTAURANTS
Not missing a chance to collect from the public performance of recorded works, a leaked memo from the Phonographic Performance Company of Australia (PPCA) reveals a strategy for collecting fees for the use of music in funeral parlors, crematoriums, graveyards, crypts and private wakes in churches or other public places. PPCA believes that there is a lucrative revenue stream in seeing people off, perhaps the last chance they have to collect money from the dearly departed. However there may be stiff opposition to this musical 'death duty' that may see PPCA grimly reap grief from the move.''
Though, as far as I know, funeral parlours have been listed in the Tarifs as a ''COMMERCIAL OR PROFESSIONAL PREMISES'' for a while now. I wonder how this differs?
i think this may be humour.
This all seems to have fallen through the cracks where I work. If shit hits the fan this is what will happen there; the owner will insist that staff do not play cd's but that we instead listen to god awful shite on the jukebox all day and night. Good bye Lucy Lehmann and Treetops cd's hello Creed and Beyonce.
News at 11 - Mondo rock bassist compares music to sweat towel.