In-Store Music: Copyright Law
Retail Update
Susan Dickenson -- Home Accents Today, 3/6/2007 10:24:00 AM
U.S. Copyright Law gives copyright owners the exclusive right to publicly perform or authorize performance of their works. Public is defined as “a place open to the public or at any place where a substantial number of persons outside of a normal circle of a family and its social acquaintances is gathered."
Most musicians, composers and publishers join one or more of three organizations to enforce their rights under the Copyright Law: the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI) and SESAC, Inc. These organizations will issue, for a fee, a license to individuals and organizations that perform live, play recorded or broadcast music in public places.
The Fairness in Music Licensing Act of 1998 exempts stores smaller than 2,000-sq.-ft. from paying fees for broadcasting radio or TV for their customers. Larger stores that broadcast radio or TV are also exempt only if they use less than six speakers, with no more than four in a room. Public places that play CDs are still subject to licensing fees.
There is also a section regarding the retail sale of music which has been broadly interpreted. Jerry Bailey, BMI’s media director, said “When music is played throughout a retail establishment for ambience and entertainment of all customers and employees, this use of copyrighted music is not within the immediate area where the sale is occurring, and is not intended solely for the purpose of promoting the retail sale of the music.” Bailey emphasizes the words “immediate” and “solely,” the key (and sometimes disputed) words in that section of the Licensing Act. “Such performances are not lawful without a BMI license (or direct permission of the songwriter) authorizing such performances.”
For more on copyrights and music licensing, see The Council of Better Business Bureaus’ Music in the Marketplace at bbb.org/Alerts/article.asp?ID=451
In-Store Music: service options
Every store, customer, and budget is different, and there are many companies offering unique background music systems for businesses. The following overview provides links for additional information; contact the organizations and companies directly for cost and installation questions.
To legally play CDs or pre-recorded music on your store’s music and audio equipment, you can pay the annual fees directly to BMI, ASCAP, and SESAC. ASCAP (www.ascap.com) charges based on the number of speakers: $190 for three or less; each additional speaker is $39 up to a maximum of around $1600. BMI (www.bmi.com) and SESAC’s (www.sesac.com) fees are based on square footage: BMI’s annual fee starts at $182 for 2,000-sq.-ft.or less, $570 for 5,000-7,500-sq.-ft., $1,600 for over 17,500-sq.-ft. SESAC charges approx. $160 for anything under 10,000-sq.-ft.
HIPster Music (www.hipstermusic.com) requires a minimum investment of around $120-150 for 12 custom-mixed CDs.
Muzak (www.muzak.com) delivers selections over broadband, by satellite or on high-capacity disks.
DMX (www.dmxmusic.com) uses proprietary technology to delivers custom content and commercial-free programming via CD, DVD, digital cable, satellite and the Internet. DMX also produces customized compilation CDs for businesses to use as promotions and giveaways.
SIRIUS Satellite Radio is in partnership with Applied Media Technologies Corporation (AMTC) to provide SIRIUSBusiness (www.amtc.com) background music service via 69 channels.
A cost analysis of Muzak, DMX and SIRIUSBusiness services, prepared by AMTC, may be viewed at www.amtc.com/sirius/chart.html.
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