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</o:shapelayout></xml><![endif]--></head><body bgcolor=white lang=EN-GB link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>I would add a rider on one specific point there Tony, but it’s a long one…<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>“</span>The law is civil, anyone can demand any fee they chose.”<span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>Strictly speaking that is true, but that does not mean they can automatically have the fee they demand. The law recognizes the privileged position of the limited monopolies it grants to recognized collecting bodies, are their demands are always subject to review and settlement before the Copyright Tribunal.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>The PPL vs AIRC ruling on which the current radio licensing is based is arguably out of date, since it predates Community Radio licences, but it does *<b>not</b>* provide for minimum fees, nor extra payments for additional simulcasts. PPL is on unproven ground in making those demands. A particularly pernicious aspect of minimum fees is of course that it removes from PPL any strong incentive to come up with more cost-effective administration or group schemes.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>To deal with the one-sided situation of bodies being able to name their price, the law permits anyone who feels they are not being offered fair or appropriate licence terms to refuse to sign up, and instead pay what they feel is properly due for a ‘deemed licence’. However, <i>and this is where PPL plays dirty</i>, exercise of that right is subject to the would-be licensee making an application to the Copyright Tribunal to adjudicate on the matter.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>PPL is an aggressive corporate bully, and relies heavily on the fact that most of its individual licensees could never afford the financial risk of taking a case to the Tribunal (which has similar procedures to a court of law), and PPL has a history of employing unnecessary levels of legal expertise to rack up the potential costs for losers.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>This situation has always in effect denied justice to smaller radio stations, and even the big ones have generally been able to act only collectively. It’s more than overdue for CMA to find some way of properly getting the non-profit radio sector (Community and micro commercial together ideally) for collective action to demand a fairer tariff. When we deemed our own licence for two years we based it on a minimum fee of £50 + 1% of NBR, and I believe that could have bene well-defended at Tribunal, but equally PPL could have bankrupted us with just a few days of their legal costs.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>I believe the appalling situation of the Copyright Tribunal for smaller entities has been partly recognized by the introduction of a fast track process, but I am not sure how applicable this would be to our case. However, I do think if it wants to do anything, CMA should have some preliminary investigations of that.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>I would *<b>not</b>* ask PPL to justify its costs – anyone can find plausible ways to justify a scale ranging from zero (or even negative!) up to astronomical figures. We should simply say what we feel are fair costs and apply those across the board until PPL can get legal backing for its present unfair and inequitable structure. NB it is *<b>fair</b>* and equitable rates we are looking for *<b>not</b>* just ‘reasonable’, since a hugely wide range of charges <i>could</i> be considered reasonable (ie within the bounds of reason), even though they might be clearly grossly unfair. A fine distinction to be sure, but I think significant.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>It occurs to me however, that if PPL continues to insist that the minimum royalty tariff is fair, then they must by the same argument demonstrate adoption of a minimum royalty *<b>payout</b>* scheme that gives, for sake of argument, a minimum of £500 in royalties to any artist whose royalties for reported music use would otherwise fall below that threshold; <i>quid pro quo</i> (er, that’s not Status Quo obviously – they probably do okay!).<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>…<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>Sorry this is so lengthy, but beyond those points on the basic tariff, I would like to add:<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><span style='mso-list:Ignore'>1)<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>I believe there should be at most a truly minimum fee to cover reasonable admin costs of a licence, and I would assess those as £30-50. And I believe a new threshold should be added below the current 2% step, with a 1% rate band up to half the 2% threshold – this is in line with the Copyright Tribunal’s original reasoning for the 2% and 3% bands, and simply recognizes that nowadays there are numerous stations operating at a lower financial level that the Tribunal ever realized there would be a need to consider.<o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><span style='mso-list:Ignore'>2)<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>As for additional fees for simulcasting on Internet and/or DAB, I believe these should simply be rejected *<b>entirely</b>*. If a station is able to generate additional income from having any of these, then the value of that will be properly recognized in the revenue figures. PPL's position is wholly inconsistent - if you are given consent by Ofcom to add a relay that quadruples your population or geographic coverage there is no change of PPL agreement or tariff at all, and yet if you add a small area DAB simulcast in your existing patch they want a massive increase in royalties.<o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><span style='mso-list:Ignore'>3)<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>I would stay away from discussions of payments to the niche artists that we all play but suspect aren’t getting their fair share of the dibs, because the obvious answer to that one is for PPL to demand 100% 24x7 music reporting. <o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><span style='mso-list:Ignore'>4)<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>I do believe is fair to levy royalties on broadcast-related <b>revenue</b> Community Radio/non-profit licensees, as is the case at present. [Wrighty note: it is not your ‘zilch profit’ that is assessed for royalties, it is your revenue derived from broadcasting activities]. What I do not agree with, as said above, is the levying of a minimum fee, and I feel 1% would be a fairer first step on the tariff scale. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>Or we could ask Ed Vaizey to recognize in law that community/non-profit stations do as much good for musicians broadly as they get in benefits from the PPL repertoire, and to exempt them from the copyright regime, except again perhaps for a nominal registration fee.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>I do feel also that the constitutionally non-profit micro-commercial sector (where I sit) and the enforced non-profit CR licensees should stick together on this to make the case as broad and compelling as it can be.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>But we won’t get anywhere without strong collective action led by a determined body willing to take on a rough ride.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>Phew, lunchtime methinks.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'>Alex<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0cm 0cm 0cm'><p class=MsoNormal><b><span lang=EN-US style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext'>From:</span></b><span lang=EN-US style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext'> cma-l-bounces@mailman.commedia.org.uk [mailto:cma-l-bounces@mailman.commedia.org.uk] <b>On Behalf Of </b>Tony Bailey<br><b>Sent:</b> 11 February 2016 12:45<br><b>To:</b> The Community Media Association Discussion List <cma-l@mailman.commedia.org.uk><br><b>Subject:</b> Re: [cma-l] PPL / PRS for Music mini consultation<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Don't take this as an endorsement but so far as I am aware:<br><br>Anything in the "public domain" has no rights attached to it.<br>Artist performance (as distinct from performance of the work) wasn't a legal right. <br>I think online payments are proportional to users.<br>The law is civil, anyone can demand any fee they chose.<br>Distribution is a matter for the representative organisation.<br>This is also a matter for the organisation and their members.<br><br>Tony Bailey<br><br>On 11/02/16 08:47, Ian Hickling wrote:<o:p></o:p></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal>Isn't this an opportunity to go right back to basics? <o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Why are we paying to use something that is essentially out there in the public domain?<br>Why should we be paying artists to give their work exposure?<br>Should it be the other way round - they pay us?<o:p></o:p></p></div><div><p class=MsoNormal>If we decide to pay, shouldn't we pay in proportion to the number of people that consume the product?<o:p></o:p></p></div><div><p class=MsoNormal>What authority do the two organisations have in Law to demand what amount to random fees?<br>Where is the evidence of distribution and proportion to the alleged beneficiaries?<br>As with Charities, how much of what is taken in goes to administration?<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal style='margin-bottom:12.0pt'>I'm prepared to put money on not getting a satisfactory answer to a single one of those points.<br>Go on - surprise me?<o:p></o:p></p><div><div><p class=MsoNormal><b>Ian Hickling</b><o:p></o:p></p></div><p class=MsoNormal>Partner<br><br><a href="http://www.transplanuk.com/" target="_blank"><span style='color:black;text-decoration:none'><o:p></o:p></span></a></p><div><p class=MsoNormal><i><a href="http://www.transplanuk.com/" target="_blank"><span style='color:black;text-decoration:none'>Office: 01635 578435 (7am-11pm UK time)</span><span style='color:black;font-style:normal;text-decoration:none'><o:p></o:p></span></a></i></p></div><div><p class=MsoNormal><i><a href="http://www.transplanuk.com/" target="_blank"><span style='color:black;text-decoration:none'>Carphone: 07530 980115 (only responds when driving)</span><span style='color:black;font-style:normal;text-decoration:none'><o:p></o:p></span></a></i></p></div><div><p class=MsoNormal><i><a href="http://www.transplanuk.com/" target="_blank"><span style='color:black;text-decoration:none'>6 Horn Street, Compton, NEWBURY, RG20 6QS</span><span style='color:black;font-style:normal;text-decoration:none'><o:p></o:p></span></a></i></p></div></div><p class=MsoNormal style='margin-bottom:12.0pt'><a href="http://www.transplanuk.com/" target="_blank"><span style='color:black;text-decoration:none'><o:p> </o:p></span></a></p><div><div class=MsoNormal align=center style='text-align:center'><a href="http://www.transplanuk.com/" target="_blank"><span style='color:black;text-decoration:none'><hr size=3 width="100%" align=center id=stopSpelling></span></a></div><p class=MsoNormal><a href="http://www.transplanuk.com/" target="_blank"><span style='color:black;text-decoration:none'><o:p> </o:p></span></a></p></div></div></div></div></blockquote><p class=MsoNormal><a href="http://www.transplanuk.com/" target="_blank"><span style='color:black;text-decoration:none'><br><br><o:p></o:p></span></a></p><pre><a href="http://www.transplanuk.com/" target="_blank"><span style='color:black;text-decoration:none'>-- <o:p></o:p></span></a></pre><pre><a href="http://www.transplanuk.com/" target="_blank"><span style='color:black;text-decoration:none'>Local Reports at <u><span style='color:blue'>http://www.ravensound.pilgrimsound.co.uk</span></u><o:p></o:p></span></a></pre></div>
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