The European Court of Justice has ruled that Irish hotel owners should pay royalties for the use of copyrighted works on television or radio by guests in their rooms.
The case was taken by Phonographic Performance (Ireland) Limited, or PPL, which argued that it was contrary to Irish law to provide such services free of charge and sought damages.
The case was taken against Ireland and arose from a bid to change Irish law that would make hotel owners exempt from paying royalties.
In its ruling today, the ECJ found that "a hotel operator which broadcasts phonograms in its rooms should pay equitable remuneration to producers... and member states may not exempt such an operator from the obligation".
Initially, PPL had taken the case to the Commercial Division of the High Court, but the Irish court referred several questions on to the ECJ. Today's ruling will now be referred by to the Irish Commercial Court where a determination on the case will be made.
The Irish Hotels Federation (IHF) has described the decision as "outrageous". Chief executive Tim Fenn said the ruling would result in an additional layer of costs being imposed on hotels and guesthouses at a time when many premises are struggling to survive.
