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Restaurants sued for playing music without ASCAP/BMI licenses
By Gordon Firemark | August 23, 2007
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.
Topics: Entertainment law, Intellectual property, Music
10 Comments »
August 6th, 2008 at 8:47 am
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
August 6th, 2008 at 9:14 am
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.
November 10th, 2008 at 4:25 am
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?
November 10th, 2008 at 1:32 pm
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…
November 15th, 2008 at 4:03 pm
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?
November 15th, 2008 at 7:42 pm
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.
February 19th, 2009 at 12:34 pm
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.
April 15th, 2009 at 5:06 pm
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?
May 27th, 2009 at 6:50 am
I am an acoustic musician. Could I purchase an ascap license that would allow me to perform at various venues?
May 27th, 2009 at 8:55 am