Unfortunately, if you are playing music in a public place (and this includes workshops and reception areas) then you will be required to have both a PRS and a PPL license. The requirement is backed up in a piece of legislation known as the Copyright, Designs and Patents Act 1988. I attach a link to the legislation, although it is quite heavy reading.
//www.legislation.gov.uk/ukpga/1988/48/contents
The PRS (formerly the Performing Rights Society) are an organisation who collect and pay royalties to their members when their music is exploited in one of a number of ways, for example when it is recorded onto any format and distributed to the public, performed or played in public, broadcast or publicly available online.
PPL (formerly the Phonographic Performance Limited) is a music licensing company who collect and pay royalties on behalf of performer and record companies. They serve the owners of the copyright of the recording and licence sound recordings and music videos for use in broadcast. They are two separate entities, one of which looks after the writers, the other looking after the record company and performers, hence the need for two separate licenses.
Following a recent drive to ensure that as many organisations as possible obtain a music licence, many SMEs will have been introduced to PRS through a phone call or a letter threatening legal action unless they purchase a license, with additional costs if they do not do so immediately. Consequently, both the PRS and PPL have been unpopular amongst small businesses //www.fsb.org.uk/discuss/forum_posts.asp?TID=599 and the music licence is a frequent topic on the BWF member helpline, with companies often unaware of the requirement.
Recent controversial cases relating to the licence have included the PRS's decision to pursue a woman who sang whilst stacking shelves at her local shop:
//www.dailymail.co.uk/news/article-1220423/Corner-store-worker-told-stop-singing-works–pay-licence.html , and a £150 yearly bill for a mechanic who worked alone with his radio on.
//www.thisisnottingham.co.uk/news/Mechanic-pay-150-listen-radio/article-401549-detail/article.html
The requirement for a licence covers most 'talk radio' stations, music played when calls are put on hold, and any music that hasn't been confirmed as royalty-free. The costs of a PRS license to a business are decided in part by the business hours and number of staff, with both organisations allowing a facility to pay for a licence on their websites. There is some controversy over the licence costs in that the radio stations already pay a large amount in royalties to both PRS and PPL for the records that they play, and the costs of a music licence will often, even for the smallest businesses, far exceed those of a television licence, which has raised accusations of profiteering.
Both organisations would respond by saying that their members are making a valued contribution to your business, and that using any copyright material, without paying for it, is illegal. In any case, members of both organisations have heavily lobbied government to ensure that their interests are well protected, and the license requirement and fees are unlikely to become any less restrictive. Recent lobbying from record companies has already ensured that, from 1st January 2011, even not-for-profit organisations (community halls, charities, voluntary organisations, and government buildings) will be required to pay PPL license fees. Members who feel that they require a music licence are advised to ensure that are buying the licences direct, as there are a number of rogue operators and agents who have been targeting small business and claiming to sell music licenses, but are either overcharging or providing a worthless service.