Television rights firm seeks payment from pubs and shops showing news channels to customers or staff

A private equity-backed company that collects royalties on behalf of screen rights holders such as Hollywood studios and television production companies has sent a blitz of letters to Irish hospitality and retail outlets telling them to buy an annual “umbrella licence” if they have a television that can be seen by customers or staff.

Motion Picture Licensing Company (MPLC), which is backed by Tenzing private equity, wants small businesses such as pubs to pay up even if they have a television over the counter that is used only to show the news. It wants companies to buy licences ranging in price from €169 to €360, even if the television is only in the staff canteen.

Several sources in the pubs industry, for example, confirmed they had received numerous letters in recent weeks seeking payment from MPLC’s Irish branch, which is based in Ennis in Clare. The letters tell the business owner that a licence has not been bought for their address and they should pay up if they have a television, and cites copyright law. An application form comes attached to the letter, instructing the business owner to pay according to the size of the premises.

MPLC is a legitimate and registered collector of royalties for the public performance of works owned by screen rights holders, in much the same way that the Irish Music Rights Organisation collects royalties for music played publicly. But MPLC’s decision this month to also start seeking payment for businesses that only show the news has rankled in the hospitality sector in particular. One publican said on Friday he had instructed his staff to “rip up” all of MPLC’s letters.

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The Vintners Federation of Ireland, which represents publicans based outside the capital, said it was “very surprised” that MPLC wants its members to pay for the right to show the news to customers. It said it was seeking further clarification from the company. Sources in the industry said the demand for payment in relation to the news was sure to be tested.

MPLC’s rationale for asking businesses to buy an annual licence to show the news is partially based on the contention that because Getty Images is one of its rightsholders, it is possible that television news reports could unexpectedly show some of its content, or the content of other rightsholders.

MPLC is understood to have emailed publican representatives at the beginning of this month to say that since Getty has now been added to its system, “news is now to be covered”. MPLC does not collect royalties for any sports on television, which many businesses such as pubs show on television to customers.

The letters sent by MPLC to many hospitality businesses in recent week also include a one-page list of frequently asked questions. It includes a warning that under copyright law, the failure to buy a licence if they show television to the public “may amount to a criminal offence which attracts a fine not exceeding €1,905 and/or 12 months in prison for summary convictions and a fine not exceeding €127,000 and/or five years on indictment”. It said the Garda and Revenue’s Customs and Excise prosecute “illegal viewings”.

MPLC’s Irish operation is run by its country manager here, Geraldine Byrne. She did not respond on Friday to emailed queries about its collection of royalties, in particular in relation to the showing of the news. The telephone of the company’s Ennis office was not answered despite several attempts to reach Ms Byrne there.

The Irish branch is wholly owned by MPLC in the UK. An official who answered the phone at its UK operation said it could not deal with any queries regarding its collection of fees from Irish businesses, and referred all questions back to Ms Byrne. He also said he could not provide any further contact details for her.

MPLC’s operates in at least 35 countries worldwide and is headquartered in Los Angeles. Its myriad rightsholders include Warner Brothers, Walt Disney and Paramount Pictures. The UK international division that owns the Irish branch generated revenues last year of £23.5 million (€27 million).