The problem started when Tom Bennett, who runs St Joseph's Workshops, in Atherton, Wigan, received a call from the Performing Right Society.
The PRS said that if he had a radio on in his workshop he was required by law to pay for a licence.
Mr Bennett was suspicious of the call, thinking it could be a scam. He said he did not want a licence and asked for information about the PRS.
But two days later he received a letter that included a licence and an invoice for £97.62.
Mr Bennett said: "I was livid. They should have sent the information to me and then I could have made a decision whether I needed a licence and could have applied for one. It seems to me they are targeting small businesses."
PRS is a not-for-profit organisation that represents around 50,000 musicians and collects licence fees from anyone playing music in a public place.
In practice this means anywhere that is not home and includes the workplace.
But Mr Bennett, who has run his wafer-making business for 15 years, says this was the first he had heard of the legal requirement.
He contacted the Greater Manchester Chamber of Commerce following the call from the PRS.
Compliant
The chamber's Nigel McFarlane said: "We want businesses to be compliant but what we won't tolerate is small businesses being made to hand over money for legislation that very few people are aware of.
"It is important for artists to be paid for the work they do but the way it is being done is out and out bullying.
"If the PRS wants to raise awareness we are more than happy to help it do this."
A PRS spokesman said the society had reviewed the phone call with Mr Bennett following the concerns he raised. In each case the PRS found the correct practice had been followed.
The PRS said Mr Bennett had been sent material explaining what the organisation was and what it did, which is standard practice. The PRS spokesman also said that the phone call was not the first point of contact. He said: "Mr Bennett has subsequently informed the PRS that he will no longer be playing music in his business.
"We will not be seeking a PRS Music Licence from him unless this situation changes."
Mr Bennett says he has received an apology from the PRS for the way he was approached and that the invoice for the licence has been written off.
He has set up a website to help raise awareness about radio licensing, www.radionono.blogspot.com .
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Showing comments 1 to 6 and replies | View All
alvinlwh (27/11/2007 at 14:12)
Pescado (27/11/2007 at 15:57)
They would not get a penny out of me.
Neil Stockport (27/11/2007 at 22:52)
Spartan (27/11/2007 at 23:45)
I thought the PRS was paid by the broadcaster in this case the radio station.
The radio station would also be paying PPL licence fees (to pay for the playing of the recording of the music, not just the copy right holder.) which are far more relevant as the radio is likely to be playing music as opposed to original works of drama all day.
I think this needs to be challenged as it is another example of small business being threatened by an organisation who are trying to exert influence where they have no right to do so in order to try to get more revenue.
Does the individual who owns a radio create the broadcast? Do they decide on the play list? Do they keep a record of what is in and out of copyright? Answer to all of the above is NO!
Batfink, Manchester (28/11/2007 at 13:12)
colin wilkinson (26/12/2009 at 09:17)
Hide your radios and stop promoting all these artists for FREE, they should pay businesses for all the free publicity they give all these artists, they have had their cut from the source of the music ie the radio stations. Lucky my kitchen supplier doesnt want money everytime i open a door!!
Heres a tip tune into www.rfmradio.co.uk playing nothing but royalty free music from GREATFUL unsigned bands just pleased to get their music heard.
NO PRS FEES OR PPL FEES,
So dig out your wifi radio and start listening to some great royalty free music and tell the prs to go away.
Its on 24 hours a day and use professional djs to host the shows