ABOUT PHONOGRAPHIC PERFORMANCE LIMITED LICENCE FOR SCHOOLS

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1 ABOUT PHONOGRAPHIC PERFORMANCE LIMITED LICENCE FOR SCHOOLS CEFM are the collection agents within the UK schools sector for the Phonographic Performance Limited (PPL). In turn, the PPL administers the performance right on behalf of the record companies, performers and musicians. A PPL Licence is required for the non-curricular use of copyrighted music in schools. PPL has recently reached an agreement with the Department for Education (DfE) where from 1st April 2015, for an initial period of three years, the DfE will purchase a PPL public performance licence. This licence will cover the non-curricular use of PPL repertoire for public performance in all English schools, including local authority maintained schools, academies and other types of schools such as pupil referral units and special schools. The schools covered by the agreement will no longer need to purchase a PPL licence via CEFM, as they did in previous years, as this will be paid for directly by the DfE. All English non state funded schools and all schools in Wales, Scotland and Northern Ireland will need to continue to purchase their PPL licences via CEFM as they have done in previous years. If you have any queries about this or any aspect of PPL licensing in your school please contact CEFM on or. The Performing Right Society (trading as PRS for Music) works in a similar way on behalf of music composers, songwriters and publishers. CEFM are also the collection agents within the UK schools sector for PRS for Music. Please note that for the use of pre-recorded music (tapes, records or CD s) a PRS for Music licence is required in addition to a Phonographic Performance Ltd (PPL) licence. Any infringement of PPL copyright will be pursued by PPL and could lead to civil proceedings. By law (Copyright, Designs and Patents Act, 1988), a PPL licence is required whenever copyrighted music is used in schools in a non-curricular manner. We have highlighted below some common types of school music use where a PPL licence is required: Discos/end of term parties; Telephone systems music on hold; Playing a record / radio / tape / CD / digital music player; School fetes (where music is being played); Jukebox; Dance/Aerobics classes for students and staff only. PPL: Why you need a licence This section explains the legal requirement to obtain a PPL licence, the legal basis on which PPL is authorised to grant licences, and the serious legal consequences of failing to obtain the appropriate PPL licence.

2 What UK copyright law protects UK copyright law (primarily, the Copyright, Designs and Patents Act 1988) provides protection for recorded music (along with other types of creative works) by giving the copyright owner certain exclusive rights of use. Anyone who uses recorded music for those protected uses will be infringing copyright unless they are licensed (i.e. authorised) to do so by the copyright owner. For recorded music (referred to under copyright law as sound recordings ), the original copyright owner is the person who undertakes the arrangements necessary for the recording to be made usually this is the record company responsible for organising and paying for the recording. The copyright owner s exclusive rights to use recorded music in the UK include, amongst others: the right to play them in public; the right to communicate them to the public (including broadcasting them); the right to copy them. Please note that you may still require a licence even if you do not think you are using recorded music in any of these ways, as the legal scope of these exclusive rights can be broader than you might think. How PPL is able to grant your licence There is no section of the Copyright, Designs and Patents Act 1988 that creates PPL or gives it the power to grant licences. Instead, PPL was set up by the UK's copyright owners themselves and it is through them that PPL acquires the legal entitlement to grant your licence. On joining, recorded music copyright owners legally transfer the relevant rights to us, or appoint us as their agent to exercise them. The result is that PPL effectively becomes the copyright owner, and is therefore able to grant collective licences authorising you to play in public, or broadcast, all of its members' recorded music or music videos in the UK. Those collective licences can also cover the copying of recorded music and music videos for certain purposes (e.g. where businesses provide jukeboxes, hard disk systems and other music/video services to other businesses) but for other acts of copying you may require the direct permission of the relevant record company. This means that you can legitimately use a vast range of recorded music or music videos without needing separate licences from each record company, etc; instead, you simply need the appropriate PPL licence. What PPL do PPL, a not-for-profit company, is the London-based UK music industry service organisation which licenses recorded music and music videos for public performance, broadcast and new media use. Why obtaining a PRS for Music licence is not enough Please note that PPL is not the same as PRS for Music. Whenever a sound recording is played in public or broadcast in the UK, a PRS for Music licence is likely to be required in addition to a licence from PPL.

3 This is because the law protects separately the underlying musical and lyrical compositions (e.g. the song ) embodied in sound recordings and music videos. The rights in those musical and lyrical works are owned separately (by composers/publishers) and licensed collectively on behalf of those separate copyright owners by PRS for Music. There are two separate copyrights in a sound recording and a licence is required for each one: The copyright in the lyrics and composition are owned by the author and music publisher and this is administered by PRS for Music. The copyright in the performance and sound recording are owned by the performers and record company and administered by PPL. As PRS for Music and PPL operate for different rights owners they have always remained as separate companies. What is a public performance? Please note that playing recorded music in public (sometimes referred to as public performance ) has a wider legal meaning than you might think. For example, it is not confined to playing recorded music in places to which the general public have access, or in an outdoor public space. A public performance occurs whenever sound recordings are played outside the domestic or family circle. Whenever, a sound recording is played in a school environment, even if only one person can hear it, it becomes a public performance and a fee is payable to PPL. It effectively covers any playing of recorded music in a non-domestic setting such as pubs, clubs, restaurants, shops, schools, municipal buildings and so on and therefore may require a licence (but a private wedding party at a hotel may not). It also covers playing recorded music on your premises via radio/tv. Charging is never an issue Contrary to popular belief the fee for the use of copyrighted material is NOT negated by the fact that the audience does not pay for listening to the music. I pay for my CDs, why do I have to pay for a licence to play them? When you buy a CD it only gives you the right to use it for private use such as playing at home or in your car. If you wish to use it outside of these environments such as background music in a school, you will require a licence from the rights owner, which in this case is PPL. Do I need a licence for TV and radio? Why? Your TV licence only covers domestic use of your television equipment. Every television channel (including SKY Sports) uses copyright sound recordings in their broadcast ( such as theme tunes and background music during programmes) so any use of your television within your business premises constitutes a licensable public performance of copyright sound recordings. Radio stations (including news and talk radio) use copyright sound recordings (such as theme tunes and background music during programmes) so any radio broadcasts within your business premises constitute a licensable public performance of copyright sound recordings.

4 Is it a legal requirement to have a PPL licence? PPL was established in 1934 by the UK recording industry to administer the copyright in public performance of their sound recordings. We operate under the terms of the Copyright Designs and Patents Act 1988 (1911 Copyright Act in the Channel Islands). The Act provides that a fee is payable to the copyright owner in a sound recording whenever it is broadcast or played in public. Where do the licence fees go to? All licence fees collected (less administration costs) are distributed to the recording companies, individual artists and musicians that have contributed to the recordings. How much does a PPL licence cost? The cost of a licence depends on your schools pupil numbers. A licence can cost as little as per year to play music. To enable CEFM to advise you further please contact the helpline team on I pay a fee to hire a music system; do I need to pay PPL for a licence? If you hire a background music system, the fee you previously paid to your supplier also included the PPL public performance fee. However, this is no longer the case and you will need to secure a licence direct from PPL. If you hire a Jukebox, the public performance fee is still included in the fees you pay to your supplier. I play music videos (DVD) on my premises If you are playing music videos you will also legally require a licence from VPL. The VPL licence fees are assessed according to the number and size of the screens upon which music videos are played. Can we stream music from the internet into our premises? The following types of music cannot be used for public performance: Illegal downloads (from P2P networks etc.) Unlicensed internet radio services Licensed on demand / interactive music services (Napster, Yahoo Music, etc.). These are services that let users play specific tracks in an order of their choosing or to create customised 'radio' stations playing a range of music / artists they have selected. It is our understanding that such services are only licensed by the record companies for personal individual use and not for public performance use. The following sources of music can be used: Legally purchased downloads on condition that the usage complies with the Digital Rights Management (DRM) rules accompanying the download. For example, if the download is restricted to being held and played back from a specific PC or MP3 player, the public performance has to be sourced from that PC or MP3 player. If the download rules allow the

5 track to be burnt to a CD that CD can then be used for public performance in the same way as any conventional commercial CD. Licensed streamed non-interactive Internet radio services (this would include the Internet broadcasts of licensed commercial radio stations such as Capital, XFM etc. as well as Internet only radio services that have proper licences in place). Why isn't a PPL licence transferable, when the licence is for music used at the premises? A PPL licence entitles a named person or organisation to publicly perform sound recordings at a designated premises only. When a new person takes over a premises or moves premises the usage of sound recordings may be different and so a new licence needs to be issued to ensure that we accurately licence any sound recordings used. What happens if you do not obtain the appropriate licence Hundreds of thousands of businesses and broadcasters are licensed by PPL and are therefore able to make lawful use of recorded music and music videos. However, please be aware that failure or refusal to obtain the appropriate PPL licence can have serious consequences, and may ultimately result in a court order to stop you playing sound recordings or music videos altogether until all outstanding fees are paid in full as well as making you pay interest and costs.

6 TARIFF FOR THE PUBLIC USE OF SOUND RECORDINGS PPLPP114 PHONOGRAPHIC PERFORMANCE LIMITED, 1 UPPER JAMES STREET, LONDON, W1F 9DE. TELEPHONE: FAX: CEFM - Schools Tariff THIS TARIFF IS EFFECTIVE FROM 01-APR-15 TO 31-MAR-16 NOTES: This tariff covers the use of recorded music by Schools, in School premises, other than music used as part of the national curriculum as specified under S34 of the Copyright Designs and Patents Act This tariff covers: >Exercise to music (Aerobics etc.) >Background Music, Whether by CD, tape hard disc system etc >Special Featured Entertainment Events, inc. School Discos, or music quizzes. >Music on Hold Background music can be played from different types of machines, such as Background music systems, CD players, cassette decks, mini hi-fi systems. Music in schools means "Music used in school premises by groups of students, teachers or individuals with direct affiliations to the life of the school (e.g. Parent Teachers Associations)". It excludes, activities using music on school premises by all other groups, which are subject to an additional charge. Subject to the standard PPL terms and conditions SCOPE OF THE TARIFF This tariff applies to the public performance of any sound recordings that are controlled by PPL at: > Schools (any establishments, either private or public running national curriculum for 16s and under) > Nurseries, play groups or preschools run by the school. EXCLUSIONS The following are excluded from the PPL tariff for schools and will be licensed separately under the relevant applicable PPL tariffs: >Sound recording usage at stand alone sixth form colleges, universities, and other institutions of further education and student unions, gyms or leisure centres in dedicated areas or buildings open to individuals not directly associated with the school and/or operated on a commercial basis. >Any public performance of sound recordings at events or in facilities run by a party other than the school or where any profit or benefit does not go entirely to the school. >Any other commercial or other activities that could not reasonably be considered within the normal activities of a school. > Use of Jukeboxes INFORMATION TO BE SUPPLED BY LICENSEES Every licensee under this tariff will, if requested and at least once a year supply to PPL or its authorised agent: >A statement of the total number of pupils on the school roll at the start of the academic year. >Any other information as may be reasonably required. Aggregate Annual Attendance Fee( ) Fees increase pro rata per band of 50. VAT should be added at the current rate to the above charges. The Minimum PPL Licence Fee will be applied Phonographic Performance Limited. For Information Only Publication Strictly Prohibited.