BMI (Broadcast Music, Inc.) is a performing rights organization (PRO). It represents more than 1.1 million songwriters, composers, and music publishers from different music genres. PROs collect license fees from businesses that play songs from the songwriters and singers they represent. The establishments required to pay licensing fees for music include websites, retail stores, televisions and radio stations, nightclubs, hotels, bars, restaurants, public establishments, and internet or mobile technologies.
BMI Music License
BMI is a music licensor responsible for collecting licensing fees, which are later distributed as royalties to the artists it represents (often referred to as BMI royalties). If you are looking to publicly play copyrighted music, you need to obtain a performing license from the PRO. You can’t play copyrighted music publicly without these licenses. The copyright law insists that enterprises must obtain permission from songwriters, composers, and artists before they can publicly play songs.
Copyrights are classified under intellectual property law. They protect creative content and creative expression, including books, movies, millions of musical works, drawings, photographs, and software codes. The copyrights are obtained to prevent unfair use of said material and offer financial compensation to the copyright owners. The BMI license fee keeps the artists in the business and helps them keep creating content.
Ignoring copyright laws, whether knowingly or unknowingly, and using copyrighted material without proper licensing puts business owners at risk of fines that can add up to thousands of dollars, or other legal action from copyright licensors, such as BMI, for copyright infringement. By complying with copyright law, businesses keep themselves away from lawsuits that could impact their business and ensure that content creators receive their dues.
BMI licensing costs for an average establishment
The average BMI license for businesses costs between $250 and $400 annually. This amount could increase up to $2000 depending on a variety of factors. Some factors considered are the size of the business, the number of locations, how many speakers you have in each room, and the maximum occupancy.
For a retail business with a single location covering up to 5000 Square ft. and only four speakers, their BMI licensing fee would be $460 per year. And the more speakers you have and new locations, the higher the cost goes. However, the BMI license fees vary and have exceptions for specific businesses and use cases specified by BMI.
The BMI license only covers content from artists under BMI. You’ll still need to obtain permits from other PROs to play music under their catalog. Since BMI doesn’t hold a monopoly as a PRO, other PROs also issue licenses for artists registered under them. The larger you want your playlist to be, the higher the licensing fees will be. Since PROs do not collaborate, having a license from one doesn’t protect you from lawsuits and fines from the other PROs.
The role of a BMI representative
A BMI representative plays a crucial role in the music industry, serving as a bridge between songwriters, composers, and the establishments that wish to use their musical works. These representatives ensure that all parties involved in the music playing process adhere to copyright laws within the United States. They are responsible for educating businesses about the importance of obtaining a performing license to legally play songs. This support not only protects the rights of music creators but also ensures that establishments are legally covered when they use copyrighted music.
To legally play any commercially available song, you will need all the licenses. For the same type of establishment, i.e., retail business, single location, 5000 square ft. and only four speakers, ASCAP charges $298 per year, and SESAC fees are around that same figure. If the $1000+ annual cost for all licenses and the time spent applying and waiting seem like a lot, then the fines you will face for copyright infringement are certainly something to consider.
A much cheaper and recommended alternative for music streaming is to subscribe to a commercially licensed background music provider like Jukeboxy Music for Business. Subscribing to one of these licensed providers gives you access to all your favorite tracks at less than half the price and time you would’ve spent on per location licenses.
What happens if a business doesn’t pay for BMI licenses through BMI or a BMI licensed background music service provider like Jukeboxy?
Tempting as it is to play music without paying licensing fees, the legal action taken by the PROs for copyright infringement will cost your company a lot more than the price tag of the license. The public performance, playing the music of any type on your premises, whether performed live or streamed over the speakers, is covered under copyright laws. If you want to play it, you have to pay for it. Suppose investigators of the PROs discover your business has played music without obtaining the necessary licenses. In that case, they might reach out to you requesting payment for the musical works played or take legal action in the form of a lawsuit.
The financial consequences of ignoring the licensing laws are severe. For establishments not licensed under the individual PROs like BMI or licensed music streaming providers like Jukeboxy, the fines range from $750 for every unauthorized playback instance. This fee can go upwards of $150,000 when the court finds out you did it willingly and knowingly that it was illegal. If you lose the case—which usually happens—you will have to pay the PROs’ legal fees.
Paying for a BMI music license, whether directly or through a business music provider, keeps your establishment on the safe side of the copyright law. When it comes to music licensing laws, ignorance of the law is not the absence of the law.
Other players in the music licensing sector
Like BMI, there are several other organizations like ASCAP (American Society of Composers, Authors, and Publishers) and SESAC (Society of European Stage Authors and Composers). Together, they are tasked with licensing the copyrighted works of songwriters, composers, and music publishers. They collect the royalty fees and distribute them to the artists.
Combined, they represent more than 20 million artists in the United States, with each PRO charging different music licensing fees to play musical works from their catalog.
Like BMI representatives, all other PRO’s have investigators identifying establishments playing unlicensed music from their catalog. They will attempt to obtain the fees or take legal action for non-compliance. Licenses from every PRO will fill in the gaps not covered by another PRO and give you access to more music to play, which could be expensive. A subscription to a licensed music streaming provider, like Jukeboxy, will cover the copyrighted music from all PROs libraries.
Frequently Asked Questions
Who does BMI represent?
BMI is one of the largest performing rights organizations in the United States music industry. BMI represents over 1.1 million songwriters, composers, and music publishers – essentially the artists and musicians who create music. It collects license fees from businesses for public performances of these works and then makes royalty distributions to those creators. Many famous musicians are among BMI’s members; for example, Taylor Swift has been affiliated with BMI.
How do songwriters and composers join BMI?
Joining BMI is free and straightforward for songwriters and composers. They can sign up on BMI’s website as writers to become members. By joining BMI, a music creator will be able to collect performance royalties whenever their work is publicly performed, since BMI will handle licensing their songs and paying out those royalties.
How often does BMI distribute royalties?
BMI typically pays royalties quarterly. However, BMI recently adjusted its distribution schedule to better serve its writers, composers, and publishers. After this change, BMI’s royalty distributions are more frequent, ensuring that the creators it represents receive their payments in a timely manner.
Do businesses need a BMI license for live performances?
Yes. If your business hosts live performances of music (for example, a live band or DJ), you still need a BMI license. A public performance of music – whether it’s live or recorded – requires proper licensing. The BMI license covers live performances of any songs in BMI’s repertoire, so having it ensures your venue is legally covered for live music.
