New Zealand bar and shop owners are being warned that they have to pay for the background music they play.
The warning comes after a Palmerston North pub was forced to pay $3500 for not having a licence for its jukebox.
The offending publican, Bruce McGuigan, bought his jukebox six years ago.
However buying a jukebox or CD does not mean you have bought the licenses to play that music in public.
Nevertheless he is bemused and sees it as rough treatment in an already tough industry.
The penalty was imposed for not having $100 licence to play music.
"Music cannot be used in this way without getting the necessary permission from the recorded copyright owners" explains Mark Roach, the licensing manager from the New Zealand PPPL.
Roach said that under the copyright act any business playing music for its customers needs to pay for two licenses. One is for the copyright of the songs and the other is to compensate the performers.
Although it may be a common trap, Roach said that the purchase of a juke box or CD does not convey the right to play the music commercially.
Raewyn Beazley, who represents publicans through the New Zealand Hospitality Association, says the dual fee system can lead to confusion.
She added that there is a perception of "double dipping" about this system among members of her association.
It's not just pubs that are affected. Shops that use background music or companies that play music while you are holding on the phone also have to pay the fees.
Roach hopes the outcome of this case will increase general awareness about public performance licenses and send out a mesage out to businesses.
This may be the message for every business: The piper has to be paid.
