Is Your Business Stealing? Music, That Is…

RRetailers and restauranteurs welcome customers into their space every day. Not only do they have to provide a great product or service, they also have to make the customer feel welcome. One way to do that? Music.

It sounds easy, right? Turn on a radio, plug some speakers into your computer and stream music or bring in a live musician. 

It’s not that easy, though, if you want to do it legally. Be careful, too, when offering free wi-fi, according to the American Express Open Forum. No matter how tempting it is to entice your customers with these amenities, you have to do things differently at work than you do at home.

On Music Licensing

Owning music does not entitle one to perform or play it publicly. In almost every circumstance, music played or performed in public (which likely includes your business) must be paid for. You are entitled to private performances when you buy music in any format. Listening with a group of friends at home, at a picnic or around a campfire? All private performances. Any time music is performed as part of a story telling endeavor, like a musical play, that takes the licensing into yet another category altogether.

Small retail, eating or drinking establishments may be able to feature live simple television or radio transmissions at no cost under certain circumstances but it’s better to consult a licensing professional and do your due diligence to be sure.

Who Do I Ask & Pay?

BMI

The two major organizations you’ll need to know are ASCAP and BMI. ASCAP is the American Society of Composers, Authors and Publishers. BMI stands for Broadcast Music, Inc.. Both organizations manage licensing for about half of all songs for public performance. The fraction of work not covered by these two organizations is handled by one of a few smaller organizations. Dramatic licensing is handled by yet another set of companies.

How Does it Work

Luckily, you can pay for a blanket license that covers usage appropriate to your business.  It’s sort of a “set it and forget it” method. Unless you know exactly what you’ll be broadcasting, you’ll need to purchase licenses from both BMI and ASCAP. It is possible, but unlikely and unusual for someone to choose only one agency. You’d have to know what you plan on playing and be sure it all falls under the purview of a single organization. 

If your business relies on live bands to provide music, you’re not off the hook. According to ASCAP’s FAQ page, the law says all who participate in, or are responsible for, performances of music are legally responsible.” That might sound like it’s open for interpretation, so they go on to clarify, “since it is the business owner who obtains the ultimate benefit from the performance, it is the business owner who obtains the license.”

Play it safe and before you hold an open mic night, hire a DJ, fire up a jukebox, turn on the radio or host a karaoke night be sure you’re doing it legally!

Denny is a musician and freelance writer. He loves his freedom and living up in the Rockies.