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In order to effectively and efficiently enforce their rights under the c opyright laws, American composers, lyricists, and publishers usually join one of three performing rights organizations — the American Society of Composers, Authors, and Publishers (AS CAP); Broadcast Music, Inc. (BMI); or SESAC. These groups grant licensees the right to publicly perform the works of all their members or affiliates, for whom the societies collect and distribute fees for the licenses granted.
- More than 80 percent of the fees collected by the two largest organizations are paid to composers and publishers as royalties for the performance of their copyrighted works. Foreign writers and publishers are also represented by these organizations.
When faced with the alternative — expending considerable time, effort, and money to negotiate separate licenses directly with each composer or publisher whose music will be performed — most businesses will choose to obtain a blanket license from one or more of the performing rights organizations, which permits the license holder to perform any or all the works in the performing rights organization's repertory. If a choice is made to publicly perform only music that is in the public domain — that is, music that is no longer or never was protected by copyright — no license is necessary.
A list of places and events at which licensing could be required includes, but is not necessarily limited to: restaurants, bars, clubs and hotels where live or recorded music is played; shopping malls; stores that play broadcast or recorded music; spas, gyms or other sites that offer exercise to music; trade shows; conventions; dance studios; skating rinks; private clubs or fraternal organizations; offices and stores that use "music on hold" for telephone customers; sports teams; colleges and universities; amusement parks; bowling centers; and the Internet.
In addition, licensing is also required for those businesses traditionally associated with the performance of music, such as radio and television networks and stations, concert promoters, and the like. Consult your attorney with any questions about whether the music you plan to play publicly might be exempt from liability for royalty payments.
Failure to obtain a license to perform publicly copyrighted music is copyright infringement under the copyright law. The copyright infringer is subject to a civil suit in federal court. Sanctions against an infringer can include an injunction and the copyright owner's actual damages, as well as the infringer's profits, or "statutory damages" of up to $20,000 for each copyrighted song performed without a license (up to $100,000 if the infringement is willful).
- The infringer can also be required to pay the copyright owners' legal fees. The law further provides for criminal sanctions against those who willfully infringe on a copyright for commercial advantage or private gain. Criminal violations are punishable by up to a $25,000 fine and/or up to a year in prison.
Anyone with questions about performing rights organizations, their license agreements, or rights and responsibilities under the United States Copyright Law should talk to a lawyer. Information presented here is not intended to be legal advice and should not be considered as a substitute for legal counsel on specific copyright issues.
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