United States Copyright Law was established to protect the rights of artists, authors, composers, and publishers for their musical works. Everyone who performs or distributes music in a public space must own the rights to that music. A violation of the federal copyright laws of the United States would result in severe legal and financial penalties. Copyright law protects musical works just like it protects authors and filmmakers. Therefore, it’s illegal to play music in public places if you don’t have a license for the music. It’s surprising to see how many business owners don’t know about this regulation. They don’t know that they need to obtain a license to play music or don’t know how to play music in their business legally.
What is a PRO?
Performing rights organizations (PROs), also known as performing rights societies, collect royalties on behalf of songwriters and publishers, creating a link between owners of composition rights and music users (from radio stations to streaming services to your local business broadcasting music).
As a technical matter, PROs are just a subset of a broader landscape of collective management organizations (or CMOs), which handle royalties due to public broadcasters of music works.
What is ASCAP? Why should I know about them if I want to stream music in my business?
ASCAP is a short form for the American Society of Composers, Authors, and Publishers. It is a not-for-profit membership organization representing more than 850,000 songwriters, composers, lyricists, and music publishers. They are the only performing rights organization that was formed and is run entirely by its members. ASCAP catalog has more than 16 million musical works. Their members receive royalties ensuring that their hard work is compensated.
In 2021 alone, $1,254 billion in royalties made available for their 850,000 members.
How do ASCAP fees work?
ASCAP provides a wide array of licensing options to accommodate the varied needs of businesses using music. With over 100 different license types available, ASCAP ensures that businesses from all sectors can find a licensing solution that aligns with their specific requirements. As a business owner, exploring ASCAP’s diverse offerings is crucial to understanding the potential costs associated with using music in your operations. Whether you run a small cafe, a large retail chain, or host live events, there is an ASCAP license tailored to your business’s size, type, and music usage frequency. Each license is designed to cover the use of any song within ASCAP’s extensive catalog for a specified period, typically on an annual basis.
To effectively manage the music licensing fees, it’s important for business owners to assess their music usage and choose the most appropriate ASCAP license. This process involves considering factors such as the type of venue, the frequency of music played, and the audience size. By carefully selecting the right type of license, businesses can ensure they are fully compliant with copyright laws while supporting the artists and composers whose music enriches their customer experience. Purchasing an annual license from ASCAP not only legalizes the use of a vast catalog of music but also contributes to the ongoing creation and distribution of music by compensating the creators fairly.
How much does ASCAP licensing cost?
The cost varies depending on the business type or size and the intended use of the ASCAP license. They charge an annual fee for access to their library. Some of the variables for the licensing costs are:
- the type of business
- whether the musical work is performed live or recorded
- the size of the potential audience at the venue
The minimum ASCAP music licensing fees are $390 per year, so you will never pay less than that to access their catalog.
How much to join ASCAP?
To join ASCAP, you must pay a one-time fee of $50, whether you’re a songwriter, composer, or publisher. This fee grants you access to ASCAP’s extensive catalog of over 16 million musical works and ensures you receive royalties for your creations. Once a member, ASCAP handles the licensing of your music and collects royalties on your behalf, allowing you to focus on your creative work while ensuring you are fairly compensated whenever your music is played publicly.
What is included in an ASCAP license?
A license from ASCAP gives a user access to the PRO’s repertoire, which includes millions of songs by famous and brand-new artists over many decades. ASCAP offers different licenses for various types of performances, including cover songs, recorded music played in public, ads, feature films, etc.
With an annual contract with ASCAP, you are only receiving the rights to use the music in your venue; you are not getting a subscription to a music streaming service and music streaming license cost.
Do I always have to pay the license fee to ASCAP?
According to ASCAP, you do not have to license the music when you play music for a small area through the radio or television in your establishment “if the performance is by means of public communication of TV or radio transmissions ” says ASCAP.
However, you will need to contact a PRO like ASCAP for larger sound systems. Businesses with more than 3,750 gross square feet of space must purchase licenses to access ASCAP’s catalog. There are around 150 licensing representatives who work for ASCAP across the U.S. They inspect venues to ensure no violations of in-store copyright exist.
How much is the fine if I didn’t pay for the ASCAP license?
Failing to obtain the necessary ASCAP license for playing music in your business can lead to severe financial consequences. The penalties for violating ASCAP copyrights can range from $750 to $30,000 per violation, depending on the severity and nature of the infringement. These figures aren’t arbitrary; they are grounded in federal copyright law, which outlines statutory damages for copyright infringement. For businesses, this means that each unauthorized use of a song could potentially result in a hefty fine, rapidly accumulating significant costs that could impact the financial health of the business.
Historical examples illustrate the seriousness with which these fines are enforced. Numerous businesses across various industries have faced substantial penalties for not securing proper music licenses. For instance, a small bar or a restaurant playing copyrighted music without a license could end up paying thousands of dollars in fines after a routine inspection or a reported violation. Larger establishments, such as nightclubs or event venues, where music is a central element of the atmosphere, have also been subjected to fines reaching the upper limit of the statutory range when multiple violations are involved. These examples serve as a stark reminder of the importance of compliance with copyright laws, emphasizing the need for all businesses using music to secure the appropriate licenses from entities like ASCAP.
Must Read: ASCAP Sues 13 Venues Nationwide – How To Comply With The Copyright Law?
Buying an ASCAP license isn’t the only option out there
Buying an ASCAP license isn’t the only option out there for businesses looking to use music legally. While ASCAP is a major player among Performing Rights Organizations (PROs) and is known for its transparent pricing structure, it might not always be the ideal choice for every business. ASCAP’s extensive catalog covers a broad range of music, which could be a perfect fit if their library matches your business’s musical needs. However, it’s important to note that many artists distribute their rights across various PROs, not just ASCAP. This distribution means you might find yourself needing to secure licenses from multiple PROs to access a comprehensive range of music that fits your brand or customer experience perfectly.
Acquiring these licenses from ASCAP or other PROs like BMI or SESAC doesn’t include a music streaming service. You would still need to subscribe to a separate music service provider that offers a professional, ad-free, and high-quality music streaming service. The cumulative costs of licensing and streaming can escalate quickly, making it essential to consider all aspects of music usage and potential expenses. Given these considerations, exploring alternatives such as direct licensing deals or different music services that bundle licensing fees into their subscriptions might prove more cost-effective and tailored to specific business needs. This holistic approach ensures you’re not only compliant with copyright laws but also managing your music-related costs efficiently.
ASCAP or BMI? Do I need both ASCAP and BMI?
You probably will need both ASCAP and BMI licenses to play a variety of artists and songs in your establishment. As mentioned above, there are four PROs in the United States representing musical works of different songwriters, composers, and publishers. A song you stream at your businesses may be in BMI’s catalog and not ASCAP.
For example, if you played one song licensed through ASCAP and another through BMI, you would have to pay licensing fees to both organizations. So should I buy a license from both?
Let’s give you another example:
Suppose you like the musical band Old Dominion and want to have access to all their discography. In that case, you then need both BMI and ASCAP licenses. Why?
Break Up With Him, performed by Old Dominion, is registered with ASCAP. On the other hand, their song Bad At Love is controlled by both BMI (74.99%) and ASCAP (25%). In this case, you need licenses from both organizations.
Suppose you do not want to negotiate a contract and pay licensing fees to a PRO like ASCAP or BMI. In that case, you can search for other types of songs, such as royalty-free songs, Creative Commons music, or public domain music.
However, these options have no trendy or famous songs, which may not be the best option for storefront music or background music for business settings. Finding the fitting soundtracks for business use may also be time-consuming and frustrating with these solutions.
Great Alternative for Streaming Business Music: Jukeboxy
As an alternative to paying licensing fees to the PROs and spending time to find fitting music for your business, you can subscribe to commercial music streaming services, such as Jukeboxy Music for Business.
With more than 45 million songs in its library, Jukeboxy Music has one of the largest music libraries in the industry. Their database provides your business with the best variety of music from ASCAP, BMI, SESAC, and GMR libraries. All at a much lower price than buying licensed music from PROs.
