Music bosses promise to consult over fee rises

Gyms currently pay copyright fees of $1 per aerobic session for using music. Photo / Kenny Rodger

Music industry bosses say they are prepared to consult users over a planned crackdown on copyright charges.

A review of charges to play music hit a bum note last year with fitness centres worried copyright body Phonographic Performances New Zealand (PPNZ) was planning big increases.

Shops, bars, fitness clubs and cafes which play background music are subject to a copyright fee paid to musicians and record companies.

The review is being echoed by a global campaign to recover losses from online piracy.

PPNZ managing director Kristan Bowman said that changes had not been decided and the structure of the fees was being looked at.

And PPNZ - which is dominated by big multinational record companies - says it has revamped its collection methods.

It comes after the organisation was embarrassed last year by bad publicity in advance of the fees review.

Aggressive collection methods were revealed, which included PPNZ lawyers hiring private detectives to secretly film a small shop playing Beyonce on an MP3 player.

Bowman said PPNZ would consult with users who face a revamp in June.

"It's possible that in some cases the review may not mean changes," she said.

Fitness New Zealand and the Hospitality Association remain nervous that PPNZ is planning a big escalation in some fees to match Phonographic Performances Company of Australia (PPCA) - an organisation that is dominated by the same big record companies as PPNZ.

Richard Beddie, Fitness New Zealand chief executive, described PPNZ as a monopoly.

"Our concern is that they [PPNZ] are working on increases that would be un-viable for some of our members in New Zealand.

"PPNZ should be careful that they do not force us to use covers of music that would not attract a PPNZ fee," he said.

Bowman said that this year's reviews for restaurants, cafes and bars, retailers, gyms and sports venues was timely as it was the first in six years.

PPNZ was under no instructions from overseas counterparts to increase charges and revenue.

Bowman said that PPNZ had already changed its processes for collection and that the consultation process was important for reviews.

DIFFERENT TUNES

PPNZ collects copyright fees for musicians and record companies.

* Retailers with less than 1500sq m pay $155 a year.
* Nightclubs pay $415 to $620.
* Restaurants, cafes and bars pay $155 to $620.
* Fees for urban sports centres range from $320 to $2600.
* Gyms pay $1 per aerobics session
* A new set of fees will be released in June and businesses fear big increases.