The arrangements under which the not-for-profit sector (including charities, community halls, voluntary organisations, social enterprises, and government and local authority premises) are exempt from paying for a recorded music licence are to end, bringing the UK into line with the rest of Europe. The new licensing rules come into effect on 1 January 2011, but PPL, the company which licenses the use of recorded music in the UK on behalf of thousands of performers and record companies, is giving a grace period of one year for charities to allow them time to adjust to the new arrangements. PPL has been in a year-long dialogue with the charity sector aiming to create arrangements that are “fair and reasonable”. Charity representative bodies have been particularly keen to minimise the impact on small charities. Justifying the decision, PPL stated: “This change will ensure that performers have the freedom and choice to donate or volunteer for the charities that they themselves choose. Furthermore it puts performers on a level with composers within the UK, who have always been able to receive payment for their compositions.” But community sector campaigners have said they are “disappointed” with the Government’s decision to end voluntary and community groups’ exemption from paying for music licenses before a new deal on charges has been finalised. The Community Sector Law Monitoring Group, which includes the Voluntary Arts Network, welcomed the delay in implementation until 2012, and hopes to continue negotiations. The group has so far reached agreement on a £40 flat fee for groups with incomes under £10,000 a year; a single scheme to collect the fees for both the Performing Right Society (PRS for music) and PPL; and a single licence applying to community buildings and the land immediately around them, with most groups using a building being covered by that licence.
