The Personal Properties Security Register and your business

We have previously written about the Personal Properties Securities Register (PPSR). The PPSR allows businesses to register security interests over personal property, giving them rights over the personal property in exchange for the security of payment or the performance of a particular obligation.

Personal property is property that is not land, buildings, or fixtures. Personal property can be items such as machinery, stock, shares, debts, or even rights under a contract.

As previously discussed in the past these security interests would have been registered on a number of separate registers, such as with ASIC (if the security interest was over shares), or with REVS (if the security interest was a motor vehicle). The PPSR now streamlines all of that into one central register.

The PPSR also allows businesses or individuals to check whether the personal property they are purchasing have a security interest over them. This can provide potential buyers with a way how to double check and make sure that when the transaction is completed, the purchaser will have full rights to own the personal property. If there is a security interest attached to the car, then the vendor may not actually have the right to sell the car – but in the worst case scenario, the owner of that security interest (for example, the finance company who loaned the money for the car) can repossess the car if the loan has not been paid.

Because there is now a central register noting down all security interests, as a small business it should be theoretically easier to offer your plant and equipment / machinery as security for a loan, as it is easier for the bank to check if the equipment or machinery is either owned by someone else, or if someone else has already lodged their security interest on the equipment.

If you are a small business who sells goods on credit, you should consider registering your security interest on the goods, so that if your debtor does not pay your outstanding amount, you may try to repossess the goods. If you rent or lease out machinery and equipment, it might also be a good idea to register your security interest on the machinery and equipment.

For a small fee, the PPSR can be searched for a fee via http://www.ppsr.gov.au. If you are a small business, you should consider incorporating the PPSR and its features into your business processes!

Can I play music at my premises?

A lot of small businesses play radio or some other music in their premises. This is quite prevalent especially in retail stores. Did you know however that you generally need permission to play recorded music in your shop or your business, even if you have already purchased the CD?

It’s a little complicated, but when you purchase a CD you don’t actually purchase the rights to the music – you purchase the right to play the music for private, or domestic purposes. If you want to play the music to the public, then you must get permission from the owners of the music to do so. The courts have even considered that playing music over the telephone while people are waiting on hold can be considered¬†playing music to the public.

If you want to play music in your business or your shop, you will likely need permission, or a license, from the Australasian Performing Rights Association (ARPA) and from the Phonographic Performance Company of Australia (PPCA). These are non-profit organisations who work for their members, who are the owners of the music. They collect money from granting licenses and distribute the collected income to their members.

Of course, this is not an issue if the music is something that you’ve composed and performed yourself, or you’ve already obtained permission from the person (or people) who composed and performed the music.

This is also not an issue if copyright has expired over the music, but this can often be misleading. For example, while copyright has expired over Beethoven’s works, copyright protects the recording of the orchestra performing Beethoven’s works. If this is the case then you’ll still need licenses.

If you fail to obtain the relevant permissions then you could face the long arm of the law – either ARPA or PPCA might send you some letters seeking that you stop this behaviour or even worse, take out actions against you in a court of law.

Long story short – if you’re playing music in your business or at your store, then you should get the proper permission! If you’re still confused about what you need to do, drop us a call or send us an enquiry using the quick contact form.