MUSIC USERSLicensing FAQ
We receive numerous questions relating to public performance rights and copyright, so we’ve put together a quick 'Q&A' of some of the most-popular questions we're asked. For FAQs relating to artists and licensors please select the relevant link below: Do I need a licence?Visit our Licensing page to find out if your business needs a licence. How much do licences cost?Licences costs vary across different industries. Look at our Tariffs page to find the tariff for your business., Is PPCA a government organisation?No. PPCA is a national, non-government, non-profit organisation representing the interests of record labels and Australian recording artists. Why deal with PPCA rather than the individual copyright holders?If you undertake the public performance, communication or broadcast of protected sound recordings or music videos, and don’t wish to deal with the PPCA, you'll have to incur the time,expense and difficulty of finding the appropriate rights owners for all of the protected sound recordings you wish to use. Once you identify these owners you must then negotiate individual deals and undertake the necessary administration/accounting activities with respect to each of the rights owners. PPCA provides an efficient “one-stop-shop” to users who wish to undertake the public performance, communication or broadcast of protected sound recordings or music video's covered by the PPCA licence. What services does PPCA provide?PPCA sees its major service as providing effective one-stop licensing for those who wish to play sound recordings in their business. PPCA provides:
Is there any legal requirement for me to pay PPCA licence fees?It is illegal to play protected sound recordings for commercial purposes without a licence. The Copyright Act imposes an obligation on those who wish to broadcast, communicate or publicly perform protected sound recordings and music videos to obtain the licence of the copyright holders. PPCA is authorised by participating record labels to grant these licences and to collect licence fees. If you don't obtain a licence from PPCA, you will need to obtain a licence from each relevant individual copyright owner. For further information, see The Legal Position. What are the consequences of operating a business without an appropriate licence?It is illegal to play protected sound recordings without an appropriate licence. PPCA operates an enforcement program, carrying out inspections and investigations into the un-authorised public performance, transmission and broadcasting of copyright protected sound recordings and music videos by businesses across Australia. In some circumstances, where, despite numerous attempts at licensing a business found to be using copyright protected sound recordings and/or music videos, that business continues to perform protected sound recordings in public without a licence from the appropriate copyright owner(s) or PPCA, PPCA can and does take legal action on behalf of its licensors for the infringement of copyright. PPCA has enjoyed a 100% success rate in legal proceedings against businesses using protected sound recordings without a licence to do so. The Federal Magistrates Court can rule that an unlicensed business must pay backfees, legal costs and damages if they are found to be illegally playing recorded music. We encourage anyone who is considering using recorded music or music videos to contact us beforehand to ensure the appropriate licenses are issued. We are able to talk people through their responsibilities and the costs involved so that they can build them into a business plan. What is public performance?A public performance is the playing of a sound recording or the exhibition of a music video in public (i.e. a non-domestic environment). Just because a performance is given for free, or the audience is small, or there is no admission fee, or the performance is confined to members of a club, or a limited area, it does not mean it is not a public performance. When should I apply for a licence?A licence should be obtained in advance of undertaking the public performance or broadcast of sound recordings or music videos. What are the Terms and Conditions of PPCA's standard licence?The Terms and Conditions can befound on the PPCA Licence Details form. Click here to be redirected to the 'Forms section of our website and download the Licence Details form PDF. How are business licence fees determined?PPCA's business licence fees are assessed under a system of tariffs. In most cases, the level of fees relate directly to the extent to which sound recordings are played by the licensee and the size (or potential size) of the audience. For music videos, the level of fees relate directly to the number of areas, and the number and size of the screens on which music video clips are displayed by the licensee together with and the size (or potential size) of the audience. I already have an APRA licence – why would I need a sound recording licence?There are at least two (2) copyrights in any recording: (i) The copyright in the song, being the composition and/or lyrics (i.e. the "musical work" in copyright language). APRA grants licences for the broadcast and public performance rights in the musical work and distributes licence fee income to songwriters and their publishers. (ii) The copyright in the recorded version of the musical work. PPCA grants licences for the broadcast and public performance of recordings and distributes licence fee income to record labels and directly to registered Australian recording artists. The practical effect of this distinction is that the broadcast or public performance of a protected recording usually requires two licences - one from APRA and one from either PPCA or the individual sound recording copyright owners. Is a PPCA licence required for live performances?No. PPCA grants licences in relation to 'sound recordings' only, not live performances. However, if copyright protected pre-recorded music is played through the PA, for example, prior to or in between performances, then a sound recording licence will be required and can be obtained from either PPCA or the individual sound recording copyright owners. Do we only have to pay PPCA licence fees on Australian artists?No. International copyright regulations extend copyright protection to recordings and music videos of overseas artists played in Australia. What does the PPCA blanket licence cover?The blanket public performance licence which PPCA grants covers the very wide range of sound recordings that meet two criteria. First, the licensed sound recordings must be owned or controlled by copyright owners that are licensors to PPCA and second, the licensed sound recordings must be protected under Australian copyright law. Click Here for more information about what the PPCA blanket licence covers. Who runs PPCA?PPCA was founded in 1969 by the major record companies. These companies hold shares but are not entitled to any dividends. The current shareholders are SonyBMG Music Entertainment, EMI, Universal Music and Warner Music. The board of PPCA is currently made up of 8 directors comprised of the nominated representatives of the 4 shareholders, 3 directors representing the registered artists (one of which is drawn from the artist management sector) and 1 representing non shareholding Licensors. The day to day management of PPCA is delegated to the Chief Executive Officer who is appointed by the Board. What is the PPCA Performers’ Trust Foundation?PPCA established the PPCA Performers’ Trust Foundation. The Trust makes grants for such purposes as:
For further information, see the PPCA Performers’ Trust Foundation. Does PPCA have a refund policy?PPCA issues licences that permit the licensee to use sound recordings and/or music video clips, for the period of the licence, in circumstances that may otherwise constitute an infringement of the copyright in those recordings. Whether or not the sound recordings / music video clips are in fact used by the licensee during the period of the licence is irrelevant and has no bearing on the licence fee - the payment is for the right to use the sound recordings or music video clips during the relevant period. Like many goods and services that you acquire, there is no automatic right to a refund (or partial refund) if, for example, you change your mind. However, in recognition of special circumstances that occasionally arise, PPCA is prepared to consider requests for licence fee refunds in particular, limited cases. There are four circumstances in which a potential refund will be considered. They are:
PPCA must be notified, in writing and within the licence period, that you would like to apply for a refund. You must specify the circumstances for the refund, along with details of the business closure or sale including details of the new owner, the date public performance of recorded music and/or videos ceased and any other relevant information. An administrative processing fee of $33.00 (GST inclusive) will apply to each approved refund request falling within categories 1,2 and 3, and only credit amounts exceeding this sum will be forwarded. Reduced reassessments (category 4) will NOT be charged processing fee.
How does PPCA distribute the money it collects?At the end of each financial year, the process of calculating the amount available to be distributed to licensors and registered Australian artists (after the deduction of administration costs) is undertaken. This process takes some months and these amounts are distributed in December of each year. The funds available for distribution are allocated on a track by track basis and distributed in one of two ways.
The music I play in my business is sourced from CDs I borrow from friends or from the Internet - do I still need a licence?Yes, if you are playing protected recordings - regardless of the source. Be wary, though, if you make copies of CDs that friends lend to you or you download music from the Net you may be guilty of copyright infringement. For more information on music piracy contact MIPI. If you wish to make your own commercial compilations, you should contact ARIA or the copyright holders, and AMCOS . See our links page for contact details. I only play music from the radio – do I still need a licence?You don't need a licence for sound recordings if you only publicly play the radio or TV at your business premises. However, please keep in mind that you will need a licence if you're using recordings as part of a telephone "on-hold" system. Should I notify you if I am the new owner of a business?Yes. As the new owner, you are legally obligated to ensure that you are complying with the relevant legislation, including the Copyright Act. So you should ensure you have all of the appropriate licences in place. All you need to do is complete an application form and supply us with your details. I’m an event organiser or promoter. Do I need a licence?It depends on whether the venue where you are undertaking the event is properly licensed for that event. If it’s not properly licensed, you could be liable for copyright infringement along with the venue. Please contact us to discuss the event that you are organising and we will ensure that your event is correctly licensed. There are regular dance parties at our hotel but we don't organise them - we just provide the premises, collect the bar but don't collect any of the takings. Why should we pay PPCA fees?If dance parties are held at your premises, it is your responsibility as the owner of the premises to ensure that the appropriate licences are in place prior to the event taking place. We have found that many owners of clubs and pubs pass the cost of the PPCA, APRA and other fees on to the promoter as a legitimate business cost. However, if you choose to do so, then that is a matter to be decided between you and the promoter. Why is the owner of the premises liable for any PPCA licence fees?Under Section 27(4) of the Copyright Act, the obligation to hold the appropriate licences (including PPCA licences) lies with the occupier of the premises. This is usually the owner of the premises, and not necessarily the third party who is hiring the premises for a one-off event or series of events. I run a nightclub - isn't the DJ already covered?If the nightclub is properly licensed, then any DJ working solely in that club or any other properly licensed club does not need to take out a separate licence in their own right. If, however, the DJ is either a mobile DJ operator or plays in unlicensed premises, then a separate DJ licence is required. I paid for the CDs. Why do I need a PPCA licence to play them in my business?The possession of sound recordings or music videos does not carry any right to undertake their public performance or broadcast. A PPCA licence (or a licence from the copyright holder) must be obtained in advance, whenever protected sound recordings or music video clips are to be subject to a public performance, broadcast or communication. There is a notice like this on almost every CD, tape or record sold by retailers: "Unauthorised copying, hiring, public performance and broadcasting of this recording prohibited". Where can I get a copy of the Copyright Act?A copy of the Copyright Act can be purchase from the Australian Government bookshop. Alternatively you can obtain a copy online at http://www.copyright.com.au/Copyright1968.pdf or http://www.austlii.edu.au/au/legis/cth/consol_act/ca1968133/ What is the Collecting Societies' Code of Conduct and how does it impact on the PPCA’s operations?The Code was an initiative of PPCA and other major Australian collecting societies, and it was developed with the support of the Federal Government. It aims to promote awareness of copyright and collecting societies, to set service standards for our dealings with copyright holders and licensees, and to ensure that accessible and fair procedures are available for the handling of complaints and the resolution of disputes. The Code reflects the standards of service the PPCA offers in its dealings with copyright holders and licensees. In particular:
We maintain a Complaints Handling and Dispute Resolution Policy, which explains how we will handle any complaints about our standards of service. Where can I get more information on the PPCA and its functions and activities?Give us a call and ask for a licence information pack. There are some alternative resources available including the following:
What is happening with the PPCA Nightclub, Dance and Dance Party tariff review?BACKGROUND TO REVIEW On 8 October 2004, PPCA referred to the Copyright Tribunal its proposed licence scheme, relating to the granting of licences for the use of protected sound recordings in nightclubs, and at dances and dance parties. The reference was given the file number CT2 of 2004. Click here to view a copy of the proposed licence scheme which PPCA has referred to the Tribunal. In May 2004, PPCA wrote to its nightclub, dance and dance party licensees, and trade organisations representing these licensees, informing them of its intention to review the structure of its current Tariff "E" and the rate payable for the use of protected sound recordings in nightclubs, and at dances and dance parties. PPCA invited the licensees and organisations to participate in a consultation process in respect of its review of Tariff "E". PPCA reviewed approximately 35 written responses, and licensees raised issues such as their capacity to pay an increased rate, and the fact that not all licensees are operating similar businesses, with factors such as opening hours, cover charges and style of venues varying from one licensee to the next. The submissions did indicate that some licensees are unclear about the nature and scope of the PPCA blanket licence, and uncertain about how it applies to so-called "US recordings". Click here for an overview of the coverage provided by the PPCA blanket licence. Overall, only a small number of licensees responded, and the process did not lead to any clear consensus as to what an equitable tariff for the use of protected sound recordings in dance venues would be. TRIBUNAL PROCEEDINGS PPCA therefore formed the view that, before any change should be made to the tariff, a much more comprehensive review, in which all points of view are considered, should take place in order to determine a rate that is reasonable in the circumstances. PPCA considered that the most appropriate and fairest way to progress the review for all parties concerned was to have it conducted as formal proceedings in the Copyright Tribunal, as provided for under the Copyright Act. At the end of September 2004, PPCA wrote to its nightclub, dance and dance party licensees and their representative organisations advising them of the proposed Tribunal proceedings. The Copyright Tribunal is a specialist administrative body established under the Copyright Act. It has the function of determining equitable remuneration or reasonable licence fees for a wide variety of uses of copyright protected materials, and has the authority to conduct a review and make an order which sets a reasonable licence fee. For the purpose of the proceedings, PPCA formulated a schedule of proposed rates based on an expert economic analysis of the fees that should be paid by nightclub and dance party operators. The proposed licence scheme contemplated that the licence fee payable would be determined by the venue capacity for nightclubs and attendees for dance parties. PPCA considered this to be a fair and reasonable application of licence fees and the purpose of commencing proceedings in the Copyright Tribunal is to seek confirmation of this in an experienced and regulated forum. A full (three member) Copyright Tribunal heard the matter over a two week period in June 2006. During the hearing the Tribunal was presented with a range of industry and economic evidence. The industry evidence dealt with the nature of the nightclub and dance party industries and illustrated the diverse range of nightclubs and dance parties which operate dance music events in Australia. The economic evidence concerned the expert economic analysis undertaken in setting the proposed PPCA rates for recorded music use in nightclubs and dance parties. DECISION MADE BY TRIBUNAL On 10 July 2007, the Copyright Tribunal handed down its decision in relation to a new nightclub and dance party licensing scheme. Click here to view the Copyright Tribunal's judgement. In relation to nightclubs, a rate of $1.05 was set for each person per night of operation, to be calculated on the basis of the venue’s capacity. For dances and dance parties, the Tribunal adjusted the rate to $3.07 for each person that attends each event. At a hearing on 15 November 2007, the Tribunal confirmed that nightclub licence fees payable under the new scheme are to be phased in over a five year period. The rates fixed by the Tribunal per person per night of operation are set out below. On 15 November, the Tribunal also stated that the new dance party rate of $3.07 will not be subject to a phase in period. On 23 November 2007, the Tribunal issued an Order formalising its decision on the implementation of the schemes. Click here to view the Copyright Tribunal’s Order. The Order provides that the Dance Use licence scheme (nightclubs and dances/dance parties) comes into operation as of 23 November 2007. The annual phasing-in increases for the nightclub tariff will take effect from 23 November 2007 as set out in the following table:
Annual CPI increases will apply from the second year. REVIEW OF DECISION MADE BY TRIBUNAL In August 2007, the Australian Hotels Association (AHA) lodged an application in the Federal Court for a review of the Tribunal’s decision of 10 July 2007 in relation to nightclubs (“the Appeal”). The Federal Court heard the Appeal on 6 March 2008. The decision was delivered on 13 March 2008 (click here to view the Federal Court’s Reasons for Judgment). The Court dismissed the Appeal. This means that the Tribunal’s Order of 23 November 2007 continues to be effective and the licence fee rates set out above are confirmed. Should you have any further questions about the changes, please contact PPCA on (02) 8569 1100. RELEVANT COPYRIGHT INFORMATION PPCA has also become aware that there is some confusion amongst its nightclub, dance and dance party licensees as to the nature and scope of the licence PPCA offers. The licence which PPCA grants to nightclub, dance and dance party licensees authorising their use of sound recordings for dance purposes covers the very wide range of sound recordings that meet two criteria. First, the licensed sound recordings must be owned or controlled by copyright owners that are licensors to PPCA and second, the licensed sound recordings must be protected under Australian copyright law. As to the first requirement, that the record be owned or controlled by a PPCA licensor, you can check whether a particular copyright owner is a PPCA licensor by looking on the PPCA website at www.ppca.com.au/current_licensors.htm. That web page also provides a click through to the list of labels controlled by PPCA licensors and covered by PPCA's blanket licence. PPCA licensors include all the major record companies and over 400 other copyright owners. As to the second requirement, that the record be protected under Australian copyright law, the law in this area is complex and there is no simple test for determining when a sound recording is protected under Australian copyright law. PPCA is aware that some licensees are under the misapprehension that all US artist recordings are unprotected, and can therefore be played without the need for any licence. This is not correct, and in fact many recordings made by US artists may be protected, because of the way that specific aspects of the legal requirements are applied. In general terms, copyright protection applies to the playing of a sound recording in public in Australia if that recording was made by a citizen, national or resident of, or body corporate incorporated in, a "protected" country. (Click here to see a current list of protected countries). The US is not a "protected" country at present, but as we explain here, that does not mean that all recordings by US artists or made in the US are necessarily unprotected under Australian copyright law. First, determining who "made" the recording (and hence where their base or residence is) can, in itself, be difficult. At the moment the "maker" for most recordings will be the record company, but after 1 January 2005, because of changes to the Copyright Act as a result of the US Free Trade Agreement, every performer contributing to a recording (including backing and session musicians) will also be a "maker" of that recording. Quite apart from the nationality of the artists or the place of incorporation of the record company, copyright protection for public performance also applies if the recording was made in a "protected" country. Some US artists, for example, have recorded outside the US, making those recordings protected. In addition, overseas recordings may attract a period of interim protection following release, and may be protected (wherever they were made) from the date of first commercial release until the earlier of 7 weeks after release, or the date of release in Australia. Putting these rules together and applying them to a specific sound recording is very difficult. In order to determine whether a particular sound recording is protected or not the following info rmation may be required:
PPCA does not believe the law should be this complicated and difficult to apply, but of course PPCA has no control over copyright legislation. PPCA can assure you that PPCA licences allow your business to avoid having to undertake any of this complex analysis of whether a recording is or is not a protected sound recording, as long as that recording is controlled by one of the many copyright owners that license their repertoire to PPCA. PPCA urges anyone wishing to determine whether or not a particular recording is or is not protected to obtain their own independent legal advice.
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