From the radio at the barber shop to the television in a rental apartment, businesses face royalty charges under a system filled with unanswered questions.
That playlist humming in the background of a café, the radio playing at the barber shop or the television in a holiday apartment may seem like a small part of doing business. In Cyprus, however, it could come with an additional bill.
Business owners are raising questions after being contacted by organizations seeking payment for the commercial use of copyrighted music. The issue has exposed a familiar problem: Cyprus passed a law, but the system needed to make it work clearly and consistently was never fully put in place.
The 2017 law allows collective rights organizations to collect royalties on behalf of record companies, artists and other copyright holders. The principle is straightforward. When music is used to improve a commercial space or entertain customers, the people who created and produced it are entitled to payment.
Playing music at home is different. A personal subscription to a streaming service or access to a radio station does not necessarily give a business the right to play that music publicly for customers.
The confusion begins with how the charges are calculated and who oversees them.
Cyprus has yet to establish the Copyright Authority envisioned under the legislation. Regulations that would have helped determine fees, limits and oversight were rejected by Parliament in April, leaving businesses without a central authority to turn to when they receive a demand for payment.
Some owners say they were never informed that they needed a separate license and only discovered the requirement after being contacted by a collection organization.
Among the organizations seeking payments is Grammo, a Greece-based collective management body representing record companies. Its lawyer has said the organization is legally entitled to collect royalties in Cyprus and has published a list of fees based on the type and size of each business.
The list covers a surprisingly wide range of premises. It includes nightclubs, bars and cafés, where music is a central part of the experience, but also restaurants, shops, shopping malls, gyms, hotels, offices, waiting rooms, cinemas, theaters, public events, transport services and airports.
Even a television inside a hotel room or rental apartment may count as the commercial use of copyrighted material because it is considered an additional service offered to the guest.
That is where many owners begin scratching their heads.
Few would dispute that a nightclub earning money from music should pay royalties. The situation becomes less obvious when the radio is playing quietly in a garage, a small shop or an office where customers may spend only a few minutes.
Lawmakers have acknowledged that these grey areas need to be addressed. The challenge is to protect musicians, performers and record companies without placing unclear or unreasonable demands on businesses that may not directly profit from the music they play.
Representatives of leisure center owners have also called for clearer rules, arguing that businesses should know in advance what they owe, who is entitled to collect it, and how the amount was calculated.
Until the government and Parliament fill the gaps, the disagreement is likely to continue. Copyright holders have a legal right to be paid, while businesses are entitled to transparency and consistent rules.
