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In recent months, the American Society of Composers, Authors and Publishers (ASCAP) has sued at least two dozen restaurants around the country for copyright infringement. The claims stem from the restaurants’ playing of music without obtaining a license from the performing rights organization.
ASCAP and its competitor BMI (Broadcast Music International) are the two largest American performing rights societies, charged with collecting royalties for songwrites and publishers for “public performances” of songs in their respective catalogs. ASCAP’s catalog boasts over 8 Million Songs. a public performance occurs whenever a song is played on the radio, television, or the internet, and most performances (live or recorded) of music in public spaces, such as restaurants.
Both ASCAP and BMI employ investigators to roam the country identifying new restaurants, bars, theme parks or other establishments where music is used. Venue owners are required to purchase a license, typically for a single annual fee based on the size, seating capacity and type of venue.
While many businesses aren’t aware of these rules, entertainment attorneys say that suits to enforce these licensing requirements are increasingly common, and ASCAP’s senior vice-president Vincent Candilora is quoted in the Seattle Times as saying that the recent lawsuits are intended to spread the word that performing such music without permission is a federal offense.
Although the societies have targetted bars, restaurants and nightclubs, any business can be the target of enforcement actions. More and more, shopkeepers play music in their establishments to entertain customers and set a mood. If unlicensed, doing so can result in a costly lawsuit.
New and established business owners should consider carefully how music is used on their premises and obtain the necessary licenses.
Related posts:
- ASCAP sues restaurants over music use… are theatres next?
- P.R.O.s continue policy of suing bars and Restaurants. Are your licenses in place?
- Music Rights for Plays and Musicals
Are you familiar with any situations in which a festival has been required to enter a contract with BMI. I am talking about the type of festival that happens in many local communities (examples near me include the shrimp festival on Amelia Island, a blueberry festival in Alma, Georgia, etc.). Thanks, Scott
Sure. Anywhere music is performed (whether live or recorded) for the public, a license is required. BMI (and ASCAP, SESAC, etc) have special licenses for this kind of operation, which are, generally, quite affordable.
I’m not aware that these performing rights societies are actively pursuing many of the smaller festivals and events that you describe, but I’m certain that the larger, better known festivals are on their radar.
Best practice is to contact the societies (you need licenses from all 3, in many cases), to obtain the necessary license BEFORE the event.
The help of an experienced entertainment lawyer (like myself) can be invaluable in determining what license(s), are required.
Greetings!
I’m starting a business that provides music for businesses. What type of fees apply to my situation since my cusotmers businesses vary in size? I intend to use pre-recorded music. If I acquire the proper licenses (ASCAP/BMI) does the store have to pay too?
Frank -
I’m responding to you privately, since you’ve mentioned some specifics, but generally, yes the store will have to pay ASCAP/BMI if they’re playing the songs.
You, however need a different kind of license, since you’re not making “public performances” covered by ASCAP/BMI…
Does the “Title II of the Sonny Bono Copyright Term Extension Act” apply to all states and there any licensing issues with music regarded as in the public domain?
The copyright act is FEDERAL law, and applies throughout the U.S.
Public Domain (by definition) means that the work is not protected by copyright law, and no license is therefore required.
Whether a work is in the public domain can be a complicated analysis, since the duration of copyright protection varies depending when the work was originally created, published, whether notice was affixed, etc.
I own a Greek restaurant in New York City. We play background Greek music mainly old traditional.
Of what I know ASCAP is an American organization protecting and distributing royalties to various artists. I want to know how it works in my case that we only play Greek music.
Thank you and hope to hear from you soon.
Hi, We are planning to open a gocery store. Is there any control over music produced outside of US? I am planning to buy some backround music from online stores that advertise royalty free music. Do we need a license? If yes, do we need license from BMI and ASCAP both?
I am an acoustic musician. Could I purchase an ascap license that would allow me to perform at various venues?
I have two questions regarding playing music in my small Mexican Restaurant. I have seen web sites that will sell CDs or downloads that are ‘royalty free’. If I played these songs would I be in violation of the copyright laws? If I buy a self-produced CD from a guy singing his own songs would I be okay?
Hi,
Does playing music through the radio require paying a company such as BMI? What about playing talk radio, such as NPR?
Thanks.
My church is planning on starting a small coffee house for teenagers and would like to play varying cds in the background. Would a license be required for this? We would also like to play music videos on certain nights, are there any restrictions on those?
bmi and the rest of these goons are just another example of big business beating on the little guy, millionaires wanting money from the poor and struggling, if i purchase a cd i should be able to play it anywhere anytime the artists got there money at the time of purchase
Ken,
Your interpretation misses the mark. The songwriter is entitled to be paid each time a work is “performed” publicly. That’s what BMI and ASCAP collect. For what it’s worth, most songwriters make VERY little money from record sales, unless they’re also the recording artist. The performance royalties make up the difference (somewhat).
This isn’t about big businesses. Most songwriters are struggling artists trying to eke out a living by doing what they love. Shouldn’t they be paid something when a restaurant uses their work to create an ‘ambience’ that’s conducive to the sale of food and drink?
I’m with a small roller derby team that contracts with a local roller derby rink for putting on games. The team pays the rink for the event, and the contract states that the rink is responsible for supplying a DJ and music.
The rink has licenses with ASCAP and BMI. Does the roller derby team need one to?
Thanks!
In most cases, the venue’s license(s) should cover the situation.
We live in a small mobile home park (300 units) which is governed by a Home Owner’s Association. We have potlucks twice a month with live entertainment. The entertainers are paid through a free-will offering. We do not allow anyone from outside our park to attend; these are private functions. We also have a 20 member chorus which performs twice a year. Our park currently has a license with BMI. Now ASCAP is wanting us to license with them. Are we required to have either or both licenses?
It’s likely that you DO need to have licenses from both societies. Best advice is to consult with a knowledgeable lawyer to investigate, since there are some exceptions that may cover your situation.
The good news is that these licenses are (as I understand it) relatively inexpensive…
Thanks so much for your prompt reply.
We own a small business and we receive SESAC & ASCAP phone calls all the time because we play music. We already pay a fee to xm radio and we pay the bands to play music at our restaurant. I hardly think that the musicians that have made millions already on their product are struggling, I do know that we as a small business are struggling to keep up with everyone trying to nickle & dime us for every little thing! You can’t tell me that these organizations are a non for profit when they start negotiating percentages on licensing fees.
Unless I’m mistaken, your XM license is for private use, and doesn’t cover the public performance rights that are the purview of ASCAP and BMI. You don’t have to believe that these organizations are non-profit, any more than you have to believe that the earth is round, but it is, nevertheless, the truth.
The fact is, when you play music in your business, you are using that music to create part of the ambience, the atmosphere that makes it attractive to your customers. It’s appropriate that the people who created that music should receive compensation from you for their help in making your restaurant a success.
The argument that these musicians are already rich is irrelevant… they created something that you obviously perceive as valuable… so they should receive compensation if you use their creations to advance your own business interests. If you don’t like it, you are certainly free to run your restaurant as a “music free” establishment.
Suppose a customer came in to your restaurant, ordered a big meal, ate it, and then walked out without paying… “because the owners already have enough money”. Isn’t that what you’re doing when you use music without obtaining the proper licenses?
You are mistaken.
http://www.xm4biz.com/
Well, I stand corrected about the XM license (assuming that the original commenter is in fact using a business license from XM…. ) Nevertheless, when you have bands perform live in a venue, it IS necessary to have the ASCAP and BMI licenses in place UNLESS the bands are playing all original, UNpublished songs.
“Royalty Free” usually means that no ASCAP, BMI, or SESAC licenses are required, but you should check the royalty-free licensing documents very carefully to make sure.
This is actually a more complex question that it seems at first blush. Much depends on the radio used, whether it’s an installed stereo system with multiple speakers, or a portable radio sitting on someone’s desk. Also relevant is the kind of business in which it’s being played.
You can visit the ASCAP and BMI websites and investigate a bit. If these organizations have already contacted you about licensing, I’d say it’s likely you’re subject to the requirement. Consult a lawyer who can help you evaluate the situation, however, to ensure you’re required to pay.