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09/09/2010
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Pubs to receive millions in refunds
Published Date: 12/Feb/2010
The appeal outcome is a victory for the British Beer and & Pub Association (BBPA) and the British Hospitality Association (BHA), who have been pursuing the case since 2005. At the same time, the retail sector has also won on behalf of shops and stores.
The latest ruling confirms savings of around £3 million a year for pubs, and also opens the door for refunds going back to 2005 that could amount to £10 million. The BBPA has invested around £400,000 pursing the case on behalf of pubs over five years.
Brigid Simmonds, BBPA Chief Executive said:
“This judgement confirms the victory won last November, and is another milestone which brings a step closer the prospect of substantial and fully justified refunds for pubs. This could not come at a more important time for our sector as we struggle to come out of recession and will allow pubs to both claim a refund and pay less going forward.
“With so much at stake, our persistence in pursing this case has paid off. With the appeal behind us, and pubs already benefitting from the sharply reduced charges, we are now turning our attention to helping pubs to claim the long overdue refunds to which they are entitled.
The long-running dispute began when Phonographic Performance Ltd (PPL) raised tariffs for playing music in bars, hotels, restaurants and pubs by up to 403 per cent in 2005/06.
In October 2005, the BHA and the BBPA persuaded the Government to refer the tariff to the Copyright Tribunal, but a first hearing in November 2007 led to an appeal on jurisdiction issues to the High Court in October 2008, which was also won by the two trade bodies.
In November 2009, The Copyright Tribunal ruled in favour of the BBPA and BHA on almost every single issue at stake, with overall charges to be cut by a half. In recognition of the trade associations having been successful on the substantive matter of the value of the tariffs, the Copyright Tribunal said that they were “clear winners” in the case and awarded them 50 per cent of their costs.
At a hearing on 15th October 2009, the BBPA and BHA had pressed strongly for full refunds for all those who have had to pay over the odds since 2005 to play music. The Tribunal agreed and ordered PPL to make repayments. These payments were delayed pending the outcome of the appeal, announced today.
In recognition of the practical challenges faced by PPL in organising the repayments, the Tribunal did not award interest and did not require repayments to those PPL licensees that are owed less than £50 in total.
Licensees will be able to claim refunds based on their own calculations of what they are owed, or they will be able to ask PPL to make the calculation for them.
Details of how to claim will be available in due course.
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