The Government's draft Copyright Bill is unconstitutional and fatally flawed, the Irish Music Rights Organisation (IMRO) has claimed.

The organisation, which represents the owners and creators of copyright in the Republic, says it will mount a constitutional challenge if the current draft bill becomes law.

The bill seeks to guarantee that the users of copyrighted material, including music, pay all royalties. However, the current draft exempts societies and organisations which are not "established for profit" or if they exist primarily for the advancement of religion, education or social welfare.

According to IMRO, this means a significant number of premises which play music will not have to pay any royalties. This might include sporting clubs and certain types of entertainment venues, according to IMRO.

Speaking at IMRO's annual general meeting yesterday, chief executive, Mr Hugh Duffy, said the exemptions contravene sections of Articles 40 and 43 of the constitution which govern property rights. He added that owners of copyright have a right to be paid royalties if that copyright is used, regardless of who the user is.

The draft of the bill was published more than a month ago by the Minister of State for Enterprise, Trade and Employment, Mr Tom Kitt.

A spokeswoman for the Department said yesterday that the advice from the Attorney General's office was that the bill is not unconstitutional.

She added that there are no plans to remove the exemptions as the Government believes they are "appropriate". A formal version of the bill will be published at the end of October.

IMRO intends to make representations to Mr Kitt about the bill.

At the a.g.m. IMRO chairman, Mr Shay Hennessy said the organisation's membership has increased almost 100 per cent in the last two years.

He said royalties for last year rose 11 per cent to £14.8 million. IMRO now holds 22,289 licences around the Republic. It estimates there are still 10,000 premises not paying any royalties.