Music Licensing: Are you covered?

Music plays a crucial role in creating an ambiance that can define the customer experience in any business establishment, but you can’t just play Spotify or YouTube. The music played in a business has specific licensing requirements that Spotify and other streaming services do not cover. Music Licensing is daunting, and if you’ve ever received a notice from a PRO for playing music without the proper licenses, you know it’s pretty serious. Activaire recognizes this importance and offers comprehensive coverage for all four major Public Performance Rights Organizations: ASCAP, BMI, SESAC, and Global Music Rights (GMR). This total coverage ensures you can legally play a vast array of songs, which is vital for crafting your unique brand experience and protects you from legal issues.

Did you know that over 100,000 songs are released every day? Each of these songs is likely to have affiliations with one or more of the four performance rights organizations. Keep in mind that we’re not just talking about the artist whose name you might know; we’re also talking about the folks behind the scenes, like songwriters and publishers. That 100,000 is just a tiny fraction of the millions of songs that have been released.

The mechanics of music licensing are highly complex, and we recommend coverage from all PROs. If you still need convincing, imagine this very common scenario: a song has two writers; one of the writers is represented by ASCAP, and the other by GMR. If you only have coverage for ASCAP, you’re not in the clear to play that song in your business because you only have half of the licensing taken care of.

Guess who wrote “I Will Always Love You?”

Understanding Performance Rights Organizations

Performance Rights Organizations (PROs) like ASCAP, BMI, SESAC, and GMR protect the intellectual property of songwriters, composers, and music publishers. They issue licenses and collect royalties on behalf of their members when their music is played publicly, whether in a coffee shop, retail store, or any business venue. This system is not only crucial for the livelihood of artists but also ensures that businesses can legally use their music to enhance their environment.

The Risk of Incomplete Licensing

Some music providers bypass licensing from certain PROs like SESAC and GMR to cut costs. However, this approach limits the range of music legally available for your business. For instance, these organizations represent popular artists like Billie Eilish, Adele, Harry Styles, Arctic Monkeys, Disclosure, Pharrell, The Weeknd, Bob Dylan, Ariana Grande, Drake, Lorde, and many more (Those are just some of the big names). Without coverage from SESAC or GMR, you miss out on legally playing hits from these artists, which could be integral to your brand’s atmosphere.

Real-World Implications

Consider the song ‘Exile’ by Taylor Swift, co-written by Justin Vernon (Bon Iver), whom GMR represents for 326 songs. If your provider does not cover GMR, it would not be legal to play ‘Exile’ or any of the other 325 Vernon is credited for in your business. Similarly, if ‘Rolling in the Deep’ by Adele is your jam, your provider needs to cover SESAC for you to play it in your establishment. Not to mention the works of Billie Eilish, whose brother Finneas (affiliated with GMR) co-writes her songs. These examples illustrate the potential limitations and legal risks of not having total licensing coverage.

The Importance of Compliance

Non-compliance with music licensing laws can lead to severe consequences for businesses, including costly lawsuits and damage to reputation. Music licensing is not just a legal obligation but an ethical practice supporting artists and creators whose work enhances our daily experiences. By ensuring complete coverage through a provider like Activaire, businesses safeguard themselves against legal risks while supporting the broader music community.

Roscoe’s House of Chicken and Waffles, owned by East Coast Foods Inc. and Herbert Hudson, faced a substantial legal challenge for playing eight copyrighted songs without a license. Despite repeated requests from ASCAP to obtain a license, the music continued to be played at their Long Beach location, leading to a lawsuit. The court ruled against Roscoe’s, resulting in $36,000 in statutory damages ($4,500 per song) and an additional $162,728 in attorney’s fees and costs. This case underscores the serious financial and legal consequences of not securing proper music licensing in a business setting​.

Music licensing is a big and scary monster, but it’s easy to tame; you only need to get the proper licensing, and you can rest easy. The good news is that your Activaire Curator subscription includes all the licenses you need to keep things above the board. Still not convinced? Consider this: it could cost you $1200 a year or more to acquire licenses from all four PROs on your own. Activaire Curator provides these licenses and unparalleled music service for as low as $378.00 annually. It’s time to rest easy and enjoy some fantastic music. Let’s chat.