Phonographic Performance Limited

Phonographic Performance Limited, commonly known as PPL, is a UK-based music licensing company and performance rights organisation founded by Decca and EMI in 1934. As of 2012 PPL collected royalties for 65,000 performers and 10,000 record companies.

Its field of operation is distinct from the Performing Right Society, now called PRS for Music, founded in 1914, which originally collected fees for live performance of sheet music.

PPL was formed in May 1934 by the record companies EMI and Decca Records, following a ground-breaking court case against a coffee shop in Bristol.

The coffee shop, Stephen Carwardine & Co, had been keeping its customers entertained by playing records. EMI, then called The Gramophone Company, argued it was against the law to play the record in public without first receiving the permission of the copyright owners. The judge agreed, establishing this as a legal principle. EMI and Decca formed Phonographic Performance Ltd (PPL) to carry out this licensing role and opened the first office in London.

The Copyright Act 1956 led to the expansion of PPL's role to also cover the licensing of broadcasters that played recorded music. Further copyright law changes in 1988 strengthened PPL's licensing position.

In 1996, performers were given the rights to receive 'equitable remuneration' where recordings of their performances were played in public or broadcast – leading to PPL paying them royalties directly for the first time. Performer organisations PAMRA and AURA merged with PPL in 2006, leading to an annual meeting and dedicated board specifically for performers.

VPL, created in 1984, is PPL's sister company and specifically deals with the licensing of music videos when they are played in public or broadcast on TV. VPL distributes the fees as royalties to its rights holder members. Although technically a separate company, VPL operates under the same management as PPL. All activities relating to music videos are conducted as VPL business.

Music licensing for business

Any business that plays recorded music within PPL’s repertoire in public, such as a shop, bar, office, restaurant, gym, community building, not-for-profit organisation – or activities such as dance classes will need to have a PPL licence. One exception being a hotel, guest house or B&B that has fewer than 25 rooms and does not have any areas that are open to non-residents (such as a bar or restaurant).

A PPL licence is required when recorded music, within PPL’s repertoire, including radio and TV, is played in public. There is no statutory definition of 'playing in public' (also sometimes referred to as 'public performance') but the UK courts have given guidance on its meaning and ruled that it is any playing of music outside of a domestic setting – so, for example, playing recorded music at a workplace, public event or in the course of any business activities is considered to be 'playing in public. No licence is required for listening on headphones. In contrast, any recorded music being played as part of domestic home life or when there is an audience entirely of friends and/or family (such as at a private family party) does not require a PPL licence.

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