Retailers tune in to windfall

Rochdale storekeepers who play background music in their outlets could be in for a cash windfall.

A legal ruling over copyright fees could save retailers £5 million a year and win a £20 million refund of excessive charges levied over the last four years.

Shops, pubs, restaurants and other businesses that play recorded music — including from television or radio stations — have to pay for a licence.

Public Performance Ltd (PPL) collects the fees on behalf of record companies. In 2005, PPL imposed dramatic increases in the licence fee charges. Some outlets saw their costs more than double overnight.

The Copyright Tribunal has now ruled that the increases were excessive and should be capped at 10 per cent. PPL has said it will appeal but, if the decision is upheld, retailers stand to benefit to the tune of £5 million a year as well as receiving back £20 million they have been overcharged.