Legislation

LEGISLATION

In England, the use of music in public or commercial settings is governed by copyright law, specifically under the Copyright, Designs and Patents Act 1988. This law protects the intellectual property rights of music creators, performers, publishers, and producers, and ensures they are paid when their work is used.

SOME USEFUL QUESTIONS & ANSWERS ABOUT MUSIC LICENCE IN ENGLAND.

Do Collective Management Organisations (CMOs) represent all creators, regardless of their will?

-No — under European Union law, Collective Management Organisations (CMOs) do not automatically represent all creators unless there is a specific legal basis for doing so.

The primary legal framework governing CMOs in the EU is:

Directive 2014/26/EU of the European Parliament and of the Council of 26 February 2014 on collective management of copyright and related rights and multi-territorial licensing of rights in musical works for online use in the internal market.
Under Article 5 of the Directive, creators must explicitly authorise a CMO to manage their rights. CMOs are not entitled to represent a creator without their consent or contractual agreement.
However, some EU Member States implement Extended Collective Licensing (ECL) systems, under which a CMO may also represent non-members for specific types of use. This is typically justified on grounds of legal certainty and licensing efficiency. Countries such as Sweden, Denmark, Finland, and Hungary have such mechanisms embedded in their national legislation.
In contrast, UK law, especially post-Brexit, does not generally apply ECL, and organisations such as PRS for Music and PPL represent only those creators and rights holders who have explicitly signed with them.

Can Collective Management Organisations (CMOs) set arbitrary prices for their licences?

-No. Under European Union law, Collective Management Organisations (CMOs) are not permitted to set arbitrary or unreasonable prices for the use of copyrighted works.

The key legal framework is:

Directive 2014/26/EU of the European Parliament and of the Council of 26 February 2014 on collective management of copyright and related rights and on multi-territorial licensing of rights in musical works for online use in the internal market.

Relevant Provisions from Directive 2014/26/EU:

Article 16(1) – Fair and reasonable tariffs

“Tariffs applied by collective management organisations shall be reasonable in relation to, inter alia, the economic value of the rights in trade and the nature and scope of the use of the rights.”

This means CMOs must base their prices on:

The actual commercial value of the music rights
The type and extent of use (e.g. background music in a café vs. live concert)

Article 16(2) – Consultation with users

“Collective management organisations shall regularly consult representative users and their associations when determining applicable tariffs.”

In other words, CMOs are legally required to engage in dialogue and consultation with user groups (e.g. business owners, trade associations) before setting or updating tariffs.

Q & A

Is a music licence required for my business?

-YES.
Any business — including retail shops, hospitality venues, and other commercial establishments — that uses music, whether from a represented repertoire or not, is legally required to hold a valid music licence on file.

Will I receive official documentation for the licence?

-YES.
Upon entering into partnership with us, you will receive all necessary documentation confirming that you hold a valid licence to use Dream

How is the music licence for my business calculated?

The music licence issued by Dream Music is based on three key criteria:

a) The number of months your premises operate each year
(e.g. year-round or seasonal operation)

b) The type of business you run
(e.g. café, restaurant, bar, retail shop)

c) Whether you use live music or a DJ
This influences the final cost depending on how music is performed or played on your premises.

For further information, please don’t hesitate to contact us.

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