The hotel and nightclub industries in Australia have launched a Federal Court challenge against The Phonographic Performance Company of Australia, the group that represents Australia's largest record labels, following a recent decision to increase the cost of music in dance venues by 15 times.

Last month, the Australian Copyright Tribunal lifted the rate for music played in nightclubs from seven cents per person a night to $1.05.

PPC, which represents more than 600 record companies, hailed the decision as a victory for musicians who had been exploited by nightclubs for years.