FNB News - Protest over hike in licence fee for music events in hotels

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Protest over hike in licence fee for music events in hotels

Saturday, 16 December, 2006, 08 : 00 AM [IST]

Our Bureau, New Delhi

try shall have to pay a huge amount to the music companies as licence fee for special events where sound recordings are used as one of the main features of entertainment that includes promotions, fashion shows and road shows under the Copyright Act, 1957. The licence fee as royalty may differ from Rs 20,000 to Rs 2,77,500 depending on the duration of usage of music and average attendance of the audience.

The Phonographic Performance Ltd. (PPL), which is registered with the Registrar of Copyrights, Government of India, as the registered copyright society in respect of sound recordings and has the authority to administer the broadcasting or telecasting and public performance rights on behalf of music companies in India who are its members, has claimed that the hotels and restaurants in the country shall have to pay as royalty or licence fee Rs 20,000 (lowest) for half-an-hour duration of usage of the music for average attendance of less than 500 audience and Rs 2,77,500 for 3 hours duration of usage of the music for average attendance of 9500 to 9999 audience. Also, for every additional half-an- hour duration of usage of the music the lowest amount Rs 10,500 for average attendance of less than 500 audience and the highest amount Rs 43,500 for average attendance of 9,500 to 9999 audience shall have to be paid by the hotels and restaurants to the PPL.

"The amount of money that has been claimed by the PPL is quite unreasonable and unjustified too. It is also not possible to charge additional money to our customers for entertainment of recorded music. But the industry is ready to pay a reasonable amount of money to PPL," hospitality industry sources told Food & Beverage News.

Demanding justice for the matter, the Federation of Hotels and Restaurant Association of India (FHRAI) and the National Restaurant Association of India (NRAI) have filed a case (No. 23787/ 2005) against PPL in the Delhi High Court, it is learnt. "There should be a regulatory authority to fix the licence fee or the royalty that is claimed by the PPL. What PLL should do, either they negotiate with the hotels and restaurants or fix a reasonable amount of money for the licence fee," sources said.

It is also learnt that earlier PPL was claimed the lowest at Rs 10, 000 and the highest Rs 92,500 and lowest additional amount Rs 3,500 and highest additional amount Rs 14,500 for the purpose, prior to September 2005 when PPL increased the rate. The Delhi High Court in its interim order advised 15% hike of the amount. "The hospitality industry is facing a great hurdle with this matter and we want an amicable settlement with the PPL so that both the hospitality industry and the music industry may run their businesses peacefully," sources added.

Following the PPL's path recently, the music company T Series, which is not a member of the PPL, has claimed Rs 25,000 to the farmhouses as well as the hospitality industry for the licence fee, informed sources told Food & Beverage News.