Can I challenge a PPL PRS music licence surcharge?

Why businesses receive additional music licensing charges, how to avoid them and what to do if you believe a surcharge is incorrect.

Receiving an unexpected surcharge on your PPL PRS music licence invoice can be frustrating, particularly if you already have a licence and have simply been late making a payment.

But not all music licensing surcharges arise for the same reason.

Some are imposed because a business has been using copyright-protected music without obtaining the necessary licence. Others can arise when an existing customer fails to pay their licence invoice within the required period.

Understanding the difference is important, because being late paying for a licence isn't necessarily the same as being unlicensed.

Why have I received a PPL PRS surcharge?

There are two principal circumstances in which a business may receive a surcharge under the relevant licensing tariffs.

1. Using music without a licence

Businesses that play copyright-protected music without the necessary permission may be liable for additional charges.

Although TheMusicLicence is administered by PPL PRS, the underlying PRS and PPL tariffs have different charging arrangements.

Where music has been used without a licence, relevant PPL tariffs may impose a surcharge, while the PRS element may be charged at a higher rate, typically 50% above the standard rate.

These additional charges are intended to address unauthorised music use.

At MMS, we recognise that businesses have a responsibility to obtain the appropriate licences when using copyright-protected music. Not knowing that a licence is required doesn't generally remove that obligation.

However, it's still important that any additional charges are calculated correctly and applied in accordance with the relevant tariff provisions.

2. Paying an existing licence invoice late

This is a different situation, and one that businesses may not fully appreciate.

Historically, certain PPL licences operated on an annual renewal basis. A business needed to pay its renewal invoice to become licensed for the following period.

Under TheMusicLicence arrangements, the licence agreement generally continues unless terminated by either party.

Nevertheless, surcharge provisions have been retained within certain PPL tariffs.

This means a business can remain licensed under its agreement but still face a surcharge if its invoice isn't paid within the required period.

Importantly, there is no equivalent PRS higher-rate penalty simply for paying an existing licence invoice late.

When does the PPL PRS late payment surcharge apply?

Under the current arrangements, the relevant PPL late-payment surcharge can be applied 56 days after the invoice is issued, comprising the initial 28-day payment period and a further 28 days after the due date.

PPL PRS will generally issue payment reminders during this period, often through automated emails.

It's therefore important not to overlook correspondence about an outstanding invoice, even where the business already holds a valid licence agreement.

Not all PPL tariffs contain the same surcharge provisions, so the precise charging basis should always be checked.

Can I avoid a PPL PRS late-payment surcharge?

Yes. One of the simplest ways to avoid a late-payment surcharge is to arrange to pay your licence by Direct Debit instalments.

PPL PRS allows businesses to spread the cost of TheMusicLicence over a period of up to six months.

Although the late-payment surcharge relates to the PPL element of the licence, the instalment arrangement covers the combined PPL and PRS charges.

Provided the payment arrangement is agreed and maintained, this can help businesses manage their cash flow without incurring a late-payment surcharge.

If you're concerned about paying an invoice in full, we'd recommend contacting PPL PRS as early as possible to discuss the available options.

Can I challenge a PPL PRS surcharge?

Receiving a surcharge doesn't necessarily mean it has been correctly applied.

There may be legitimate reasons to question an additional charge, particularly where there is uncertainty about the licensing period, the music use involved or the tariff provisions being relied upon.

Before accepting a surcharge, it's worth establishing:

• Why it has been applied and whether it relates to unlicensed use or late payment.

• Whether the relevant dates and licensing circumstances are correct.

• Whether the appropriate tariff provisions have been applied.

• Whether the surcharge has been calculated accurately.

It's also important to distinguish between disputing a surcharge and ignoring an invoice. If you believe a charge is incorrect, raising the issue promptly and keeping a record of your correspondence is generally the best approach.

Need help with a music licensing surcharge?

At MMS, we recognise the importance of appropriate charges for unlicensed music use. However, we also believe there's an important distinction between businesses using music without permission and existing licensees who have simply paid late. In either case, additional charges should be transparent, accurately calculated and supported by the relevant licensing terms.

If you've received a surcharge that you believe is incorrect, or you're uncertain about how your licensing arrangements have been calculated, we can help establish the position.

It's imperative you let us know as soon as possible if any of the above applies to you.