Hoteliers criticise European court ruling on bedroom royalties

The Irish Hotels Federation (IHF) today described as 'outrageous' a decision by the European Court of Justice that could require Irish hotels to pay royalties for the use of TV and radio broadcasts by guests in the privacy of their hotel bedrooms.

The case had been referred to the court by the Phonographic Performance (Ireland) Limited organisation, which collects royalties for copyrighted works.

In the ruling today, the ECJ found that hotels should be obliged to pay ‘equitable remuneration’ to producers and Member States may not exempt such an operator from the obligation.

Today’s ruling will now be referred to the Commercial Court where a determination on the case will be made.

IHF Chief Executive Tim Fenn said that the ruling will result in an additional layer of costs being imposed on hotels and guesthouses at a time when many premises are struggling to survive.

“It’s ridiculous to classify the use of a television or radio in a hotel bedroom as being a public performance, and thereby subject to royalty payments,” states Mr Fenn.

“Hotel bedrooms are not public areas and should not be treated as such. Hotels have always considered guest bedrooms to be the private space of their guests and this should be the case in relation to this type of charge.”