PRS for Music ("PRS") has now begun its 12-week long consultation process for what it hopes will lead to a revamped Tariff LP. The existing Tariff LP applies to live popular music played at venues but PRS believes that the current tariff, which was first implemented in the 1960s, is out of date and needs modernising to reflect industry changes and the growth of the summer festival market in the UK.

The 21-page consultation document invites comments from the industry on a number of key suggestions which PRS has rationalised into 15 specific questions. Headline points include a desire to:

• increase revenue for PRS' members by increasing the percentage licence fee payable by licensees from 3% of "receipts", although there is no indication at this stage as to what percentage the new licence fee might be;
• to widen the definition of "receipts" to include income earned from sponsorship, fees charged by ticketing agents and income that would otherwise have been earned had guest tickets been sold; and
• to offer a concession to "multi-arts" festivals by charging a discounted licence fee to recognise non-PRS controlled content in a festival's line-up.

The devil will, as always, be in the detail. If accepted by event owners and promoters, a widening of the definition of "receipts" to include sponsorship income will have a dramatic effect on PRS' income under the new tariff, but equally so will the cost to those staging the events. That issue, along with the proposed increase in the overall licence fee, is likely to be a hot topic for discussion this summer as the festival season gets going.

A copy of the consultation document can be found on PRS' website, and all submissions must be sent to PRS by 7 September 2010. PRS will need to seek clearance for any new tariff from the Copyright Tribunal, and those who qualify and feel their views have not been taken into account in the proposed new tariff will then have a further opportunity to raise their objections.

For further information please contact either Louis Castellani or Andy Millmore.