How tariffs are set
The main aim when setting a tariff is to ensure that our charges for music played or performed in public are fair to both the music creators and our customers. For example, we don't charge the same fee for music used in a small venue compared with a football stadium or arena.
Wherever possible, we work with national trade associations and representative bodies to run a consultation process before introducing important changes to a tariff. This ensures the relevant stakeholders have had the opportunity to provide input into the creation of the tariff structure, and gives them a platform for their views to be represented and heard.
1. In setting tariffs, PRS for Music first considers whether there is an existing tariff laid down by the Copyright Tribunal which covers the relevant form of exploitation. If there is, then that tariff will apply. If there are specific circumstances or factors which justify a different tariff applying or variations to that tariff, then PRS for Music may seek to agree with users a different tariff or variations to that tariff or (if no such agreement is possible) apply to the Copyright Tribunal. PRS for Music will consult with users in such circumstances, as referred to in paragraph 4 below.
2. If there are no such tariffs, then PRS for Music will develop a new tariff, taking into account all relevant circumstances and factors. Such circumstances and factors will include but may not be limited to:-
- Existing PRS for Music tariffs.
- Other comparable or relevant tariffs or fees, such as those operated by other collective management organisations both within and outside the United Kingdom, particularly those within the European Economic Area, or laid down by individual rights owners.
- Decisions of the Copyright Tribunal.
- The nature and scope of the use of the works.
- The value of the works to the business of the user(s), including the value of a collective licence to the user.
3. Where PRS for Music believes that an existing tariff or one or more of the major terms of such a tariff is or are no longer appropriate, PRS for Music in considering this and in considering proposals for a new tariff or major variations to an existing tariff, will take into account all relevant circumstances and factors as referred to in paragraph 2 above.
4. In cases referred to in paragraphs 2 and 3 above, PRS for Music will in accordance with its Code of Conduct and before laying down a new tariff or major variations to an existing tariff consult with users and/or their representative bodies and recognised trade bodies, and will consider in good faith the replies received in accordance with that consultation.