Hospitality industry operators have until August 20 to get their submissions in to the Phonographic Performance Company of Australia (PPCA) in relation to its plans to significantly increase its fees for the broadcast of music.

The PPCA is undergoing a review if its licensing system that would see fees for restaurants and cafes increase by up to 1600 per cent.

The PPCA, which sells licence fees for the public broadcast of copyright protected recorded music and then distributes the money to record labels and musicians, is proposing the rise under a new draft scheme it wants to introduce from October.

The new system moves from the current flat rate to a complex formula which takes into consideration an individual foodservice business' seating capacity, average meal cost, number of dining 'sessions' per day (ie breakfast, lunch and dinner), days of operation and liquor license status.

The industry has reacted strongly against the PPCA plan with operators across the country saying they will not be able to afford the new fees that will push their costs up by thousands of dollars a year.

Restaurant and Catering Australia says the plans are unrealistic and would impost a cost that operators could not afford. “From what we can see the average is around $7,500 a year when previously it would have been around about the $200 mark, ” said Restaurant and Catering Australia CEO John Hart.

“The result of jacking up the fee to this extent is that they will not pay and they will look for other options. They will not be able to pay."

To get details of PPCA's proposal or to make a submission before August 20 go to ppca.com.au