Challenge to Controller's Decision to Adjust Royalty Payments

Posted on July 27, 2011 by John Cahir

Commercial Court proceedings have been instituted challenging the recent decision of the Controller of Patents, Designs and Trademarks to introduce new tariff rates in respect of royalties to be paid for playing music in retail stores. The decision by the Controller, due to come into effect from 1 January 2012 next, purports to adjust the structure of the tariff applicable to retail premises.

Phonographic Performance (Ireland) Ltd (“PPI”), which acts as the centralised administrator of record company rights in Ireland, is claiming that the decision by the Controller would lead to a significant reduction in the amount of royalties being received from music played in retail stores across Ireland and that the Controller was acting outside its powers in making such a ruling.

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