GRTU calls for more transparency in PRS licences and fees

The GRTU Malta Chamber of SMEs has said it is concerned as to how the 'approved' tariffs for Performing Rights Society (PRS) licences and fees are drawn up.

GRTU said that over the last weeks, it has been inundated with complaints and queries in relation to PRS Ltd imposing licensing and fees on businesses for playing music in their shop.

“PRS is a registered private company claiming to represent musicians all over the world. Having been recognised by the Copyright Board it has been collecting such fees over the years but recently it has been much more aggressive in its efforts to collect what it perceives as its dues,” the GRTU explained. “Members report that the direction that is given to them by PRS is that if they refuse to make the licence or remove the licence, they have to eliminate any kind of music from their premises, and if this is not done legal action will be taken against them.”

The licence needs to be paid yearly and is applicable to all forms of music being played.

According to the GRTU, the fee is not standarised and is calculated by PRS. The enterprise is then reportedly sent a quotation, without recourse. “The basis of the calculation is made on the square meters of premises, the type of premises and the nature and extent in which the music is used. The license fee could cost hundreds of Euros and runs in the thousands for larger establishments,” GRTU said.

GRTU called for the calculation of these fees to be done in a transparent manner and be subject to scrutiny. “The approval of such tariffs as well as future increases seems to be undertaken without any impact assessment on businesses and without any  consultation whatsoever,” it said, noting that the Copyright Board, which is the entity approving of PRS operation and fees, does not have a member representing businesses and retailers.

“Business owners are very frustrated and are finding difficulty in justifying the needs for this hefty, yearly running cost and licence when the country is moving in a direction where even the basic trade license is being removed to diminish the burden on business. In this digital age where music is borderless and is available to anybody through the smartphone, enterprises are finding having to pay for the use of this music incomprehensible. Businesses in fact are already paying for both for the music and the technology and they work very hard to get clients and no law secures their enterprises’ viability.”

GRTU has requested its members to forward copies of any related correspondence or invoices from PRS to GRTU with immediate effect.

It has also written to the Copyright Board, which falls under the ministry for the economy, investment and small businesses, to request an urgent meeting to discuss this matter.