Understanding the Significance of Music Licensing Organizations

In the music industry, organizations such as ASCAP, BMI, SESAC, GMR, and SoundExchange in the USA, along with SOCAN and Re:Sound in Canada, are pivotal in ensuring that songwriters, composers, and music publishers are fairly compensated for the use of their work. These entities play a crucial role in protecting artists’ rights, managing the complexities of music licensing, and distributing royalties to the rightful owners.

ASCAP, BMI, and SESAC: Protecting Artists’ Rights in the USA

ASCAP, BMI, and SESAC are renowned performance rights organizations (PROs) in the United States. They license music on behalf of their members and ensure that royalties are collected and distributed when music is publicly performed. Each organization caters to a vast array of music genres, supporting artists and publishers in earning royalties through their creative work.

GMR and SoundExchange: Expanding the Licensing Landscape

Global Music Rights (GMR) and SoundExchange introduce additional layers to the music rights ecosystem in the USA. GMR focuses on licensing performance rights for a selective roster of artists, while SoundExchange specializes in managing digital performance royalties for sound recordings, ensuring artists and record labels are compensated for digital broadcasts.

SOCAN and Re:Sound: Leading the Charge on Music Rights in Canada

In Canada, SOCAN and Re:Sound serve similar purposes; licensing music and ensuring fair compensation for artists and publishers. SOCAN manages rights for musical compositions, while Re:Sound oversees the rights for sound recordings and performances, covering a comprehensive spectrum of music licensing needs.

Why Choose Jukeboxy for Your Music Licensing Needs

Get in the groove with Jukeboxy, your gateway to extensive music licensing for your business. Whether you’re in the USA or Canada, Jukeboxy simplifies the process of obtaining the necessary licenses from ASCAP, BMI, SESAC, GMR, SoundExchange, SOCAN, and Re:Sound. Here’s why Jukeboxy stands out:

Comprehensive Coverage: Jukeboxy offers access to a wide range of music licensing options, ensuring your business complies with legal requirements while enjoying an expansive music library.

Simplified Licensing Process: With Jukeboxy, navigating the complexities of music rights and licensing becomes straightforward, allowing you to focus on enhancing your business ambiance without the legal hassles.

Cost-Effective Solutions: Jukeboxy provides an efficient and cost-effective way to secure music licenses, making it easier for businesses of all sizes to enjoy a diverse selection of music legally.

In summary, collaborating with Jukeboxy for your music licensing needs guarantees access to legally acquired music, upholds artists’ rights, and enhances the customer experience with a superior musical ambiance, benefitting your business on multiple fronts. Embrace the ease and efficiency of Jukeboxy, and let your business set the perfect tone with legally licensed music from top organizations in the USA and Canada.

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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, as these songs involve ASCAP members.

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.

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Have you ever considered having professional background music playing in your establishment? When the right song plays at the right time, it can significantly impact your customers’ behaviors. For that reason, the professional use of background music is becoming increasingly popular in business establishments, such as restaurants, hairdressers, shopping malls, and even in the waiting rooms of doctor’s offices. Music is also an essential part of any business, but one thing is very little talked about. And that is music licensing. This article will explore this topic, looking at what PROs are and the background to music licensing.

Private or Public Music – When is a License Required?

The key finding is that a “private performance” of copyrighted music does not require a license. However, it is one of the most challenging aspects for music copyrights to navigate the difference between a “private” versus a “public” performance when performing music, whether recorded and played or performed live.

“Private performances” are complex and have been the subject of many court cases. Downloading a song from iTunes, or streaming from Spotify, the “performance” rights you receive with the musical work are limited. In particular, it allows an unlimited number of “private performances.” For instance, listening to music on earbuds while running is the equivalent of a private performance. Playing song in your car counts as a private performance as well. However, it can get a little complicated if you decide to go beyond that.

A music performance becomes a public performance when enough people hear the music, and a public performance requires additional licensing fees. The question is: when is a performance no longer private? Music played over a sound system in a public place such as a bar or restaurant is not a private performance. So if you want to play music in a business environment that your colleagues or clients can hear, you’ll need to obtain a business use music license. Many business owners do not take this seriously, or simply do not know about it. They are the ones who will end up paying a fine of tens of thousands of dollars to a music rights organization as a result of their audits.

What are PROs, and Why Should I Know Them?

PROs are organizations that represent artists’ rights, advocate on their behalf and collect royalties for public performances. These types of Organizations are available in almost every country on Earth, and they each represent hundreds of thousands of members. It’s no different in the US. 

If you are playing music for commercial purposes at your business, you will need to sign a contract with one or more PROs. Each PRO represents different musical works. If you prefer to have access to an extensive music library, you will need to sign contracts with more than one PRO, possibly with all of them.  The following list provides insight into the US music industry’s largest and most well-known PROs. Most PRO members – artists, songwriters, publishers – belong to these organizations, but they only relate to North America.

ASCAP: the American Society of Composers, Authors, and Publishers

ASCAP is among the top PROs in the United States. Founded in 1914 in New York City, ASCAP is the oldest PRO in America and is the second largest, in terms of members, with more than 850,000 songwriters, composers, music publishers, and 14 million songs.

The company is a nonprofit, meaning that it will use any surplus income it earns to improve its service quality instead of going to shareholders.  ASCAP has many notable artists in the modern era, such as Justin Timberlake, Ariana Grande, Katy Perry, and Kelly Clarkson.

BMI Music License: Broadcast Music, Inc.

BMI vs ASCAP vs SESAC. Who needs a BMI music license? What is bmi music license? BMI was founded in New York City in 1939 and is a nonprofit business entity like ASCAP. It is the third oldest and largest PRO operating in the United States, registering over 1.2 million publishers, composers, and songwriters. BMI represents over 18.7 million musical works.

Do i need a bmi music license? BMI is the home of several popular contemporary artists, including Lady Gaga, Kendrick Lamar, Taylor Swift, The Red Hot Chili Peppers, and Ed Sheeran. Some older songwriters are or were with the company, including Dolly Parton, Sam Cooke, Willie Nelson, Fats Domino, and John Williams.

SESAC Music License: The Society of European Stage Authors and Composers

Founded in 1930, SESAC music licensing is the third-largest PRO (Performing Rights Organization) operating in the United States. Originally called the Society of European Stage Actors and Composers, it has operated solely under the name SESAC since 1940.

SESAC reached a deal with various artists and currently covers around 400,000 pieces of work by roughly 30,000 writers, which is less than BMI or ASCAP. A few examples of contemporary members who have made a deal with SESAC include Mariah Carey, Adele, and Mumford and Sons. Artists from the old school who worked with the organization SESAC include Bob Dylan, Neil Diamond, Duke Ellington, Count Basie, and Woody Herman.

GMR Music License: Global Music Rights

Founded in 2013, GMR is a relatively new PRO. With just around 48,000 licensed works, the organization has a relatively small client list compared to other North American PROs, with only several hundred songwriters and publishers enrolled.

However, their client list is very high-profile, with artists such as John Mayer, Drake, Harry Styles, Childish Gambino, and Travis Scott.  Additionally, they hold the licensing rights to deceased songwriters such as Prince, George Harrison, and John Lennon.

Why Music Licensing Deals With the PROs’ is Problematic?

Different PROs offer different blanket licenses for their respective catalogs of musical works. It is the user’s responsibility to make sure they buy the scorrect license for whatever song they intend to play. Sounds simple, right? Not exactly.

In almost every case, there is no way to know for sure what musical works are included in a PRO’s repertoire. Whenever you want to stream music from major acts like Drake or Bruce Springsteen, you should contact GMR. For Beyonce, on the other hand, you might have to contact ASCAP, BMI, or even both at the same time. Even though most PROs have searchable databases on their websites, they also include disclaimers stating the information may not be accurate. You can find the following statement on their websites:

“no representations or warranties regarding the accuracy or completeness of the information found within the search results.”

As a result of the lack of transparency of who owns what, most venues end up paying thousands of dollars in license fees to all four PROs or face the risk of copyright infringement. For that reason, most business establishments choose not to play song. They feel it is not viable economically to play song due to confusion, costs, and liability concerns. 

Although background music is a valuable element for most venues that helps set the mood and create brand recognition, the complexity and risk associated with it outweigh the benefits. Artists, venues, and songwriters all suffer from this phenomenon. The negative impact on enjoying music in the community is undeniable.

Navigating the world of music licensing can be challenging for businesses looking to play music legally in their establishments. When videos or audio featuring works are unilaterally removed due to copyright violations, it often catches businesses off guard, especially if they were unaware of the licensing requirements. Performing rights organizations (PROs) like ASCAP, BMI, SESAC, and GMR play a critical role in managing these licenses, as they represent songwriters and publishers and collect royalties for public performances. If a business fails to secure the necessary licenses, it risks costly fines and potential legal action. Understanding these requirements is essential for ensuring compliance and avoiding disruption.

MUST READ: What is a BMI licensing for businesses, and why do businesses need to comply with Copyright Law?

What is the Alternative?

Fortunately, music streaming providers, such as Jukeboxy Music for Business, have agreements with the PROs to provide a commercial license for their entire music offering. By subscribing to a commercially licensed background music service, you don’t have to sign separate contracts with each PROs. 

Every business background music provider is different. They may provide licensed music by all four PROs or less; it is important to check before deciding according to your needs. 

Jukeboxy Music subscription, on the other hand, has agreements with all four; ASCAP, BMI, SESAC music licensing, and GMR. Additionally, Jukeboxy has direct contracts with Indie labels. This extensive licensing model gives our customers access to over 45 million song library and professionally curated playlists for all types of businesses.

What are the Advantages of Subscribing to Jukeboxy Music for Business?

Cost savings – obtaining licenses directly from the PROs requires an annual contract. Combined costs start at $2,000 for a small sized business. With Jukeboxy, you can opt for a month-to-month, no-contract subscription at a lower price – $29.99/per month – and save thousands of dollars.

Music streaming technology – Obtaining licenses directly from the PROs is not enough. These licenses give you the right to play track in your establishment only. You will still need a subscription music service to stream quality music that is ad free. Jukeboxy subscription gives you the music repertoire of all the PROs + the music streaming service. You can quickly install the Jukeboxy app and start streaming music legally.

Additional tools for marketing purposes – With a Jukeboxy Music subscription, you will also have access to in-store audio messaging and on-hold music services. Both tools are effective and powerful marketing strategies that increase customer experience and revenues.

Want to learn more about Jukeboxy? You can find more details here: Jukeboxy Music for Business.

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