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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The Licensing Limitations Challenge

First of all, no such thing as Spotify for business exists! Commercial use of personal digital music streaming services, including Spotify, for playing music in your spotify business account is not allowed. As stated in Spotify’s Terms & Conditions : 

“ Subject to your compliance with these Terms (including any other applicable terms and conditions), we grant to you limited, non-exclusive, revocable permission to make personal, non-commercial use of the Spotify Service and the Content (collectively, “Access”). This Access shall remain in effect unless and until terminated by you or Spotify. You agree that you will not redistribute or transfer the Spotify Service or the Content.

The Spotify software applications and the Content are licensed, not sold or transferred to you, and Spotify and its licensors retain ownership of all copies of the Spotify software applications and Content even after installation on your Devices.” 

As seen, Spotify’s terms of service strictly state that their platform is for personal, non-commercial use only. Using a regular Spotify account to provide background music for your business could potentially result in legal consequences, including significant financial penalties.

Understanding Licensing Rights

ASCAP, BMI, and other performing rights organizations are essential in enabling the commercial use of music. Obtaining licenses from these organizations grants businesses the legal rights to publicly perform music from their vast catalogs while ensuring fair compensation for creators. With Jukeboxy, businesses can simplify the licensing process as Jukeboxy takes care of ASCAP, BMI, SESAC, GMR and other necessary licensing requirements. By partnering with Jukeboxy, businesses can enjoy a seamless and legally compliant music experience, knowing that their licensing needs are being handled by experts in the field.

Consequences of Unlicensed Use

Using Pandora, Spotify, or an unlicensed music collection for commercial purposes exposes business owners to legal risks. Violating copyright laws can lead to lawsuits, with potential penalties ranging from tens to hundreds of thousands of dollars. It’s essential for business owners to understand the regulations surrounding music licensing and to seek legal alternatives to avoid such liabilities. 

“ASCAP has filed lawsuits against Fatpour in Wicker Park and Kirkwood Bar in Lakeview, seeking $150,000 in damages for not purchasing a license to play songs, according to DNAInfo. According to the complaint, ASCAP repeatedly reached out to both bars in an attempt to have them submit into full compliance with the organization. A license for Fatpour would cost $2,800 a year while Kirkwood’s would cost $1,100 a year.” 

References : Chicagoist

Jukeboxy: Your Licensing Solution

Jukeboxy provides music for commercial use. With us, you gain access to over 45 million licensed songs, ensuring that the background music in your establishment is fully authorized. Jukeboxy takes care of all the necessary licensing aspects. This comprehensive approach ensures that you can enjoy a wide range of music options while staying compliant with copyright laws. Here are some advantages that make Jukeboxy the ideal music provider for your business :

• Legal Compliance: Jukeboxy’s licensing ensures that your business is fully compliant with licensing regulations, providing peace of mind and protecting you from potential legal issues
• Extensive Music Library: With access to over 45 million licensed songs, Jukeboxy offers a diverse range of genres and styles to create the perfect ambience for your business.
• Interactive and Manageable: Jukeboxy is designed to be user-friendly and easy to manage. You can customize playlists, schedule music for different times of the day, and even control the music remotely.
• Enhanced Customer Experience: By using licensed music, you demonstrate your respect for artists, authors, composers, and publishers. Providing a legal and enjoyable music experience contributes to an improved customer experience within your business.

When it comes to playing music for your business, it’s crucial to understand the licensing limitations associated with personal music streaming services like Spotify. Utilizing such platforms for commercial purposes can lead to legal complications and financial penalties. Instead, turn to Jukeboxy and enjoy a vast music library while ensuring legal compliance, enhancing your customer experience, and maintaining the integrity of the music industry.

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Setting the Tone: Crafting a Luxurious Ambiance

In the highly competitive world of car sales, setting the right tone is essential. The ambiance you create within your showroom can make all the difference. Background music is a strategic tool to create an ambiance that puts customers in the mindset to make a purchase. From the moment they step in, the right notes can guide their emotions, making your showroom a memorable and exciting space.

Legal Issues: The Pitfalls of Unlicensed Music

Let’s delve into the legalities – a topic that might not be the most exciting but is unquestionably important. While using radio broadcasts is a common practice, it brings its share of problems, including bombarding your customers with competitor ads. With Jukeboxy, you get curated playlists tailored for businesses and ensure that every track is fully licensed. No legal headaches, no unwanted distractions – just a seamless and compliant audio experience for your customers. Elevating Car Dealership Atmosphere with Jukeboxy.

Licensing Peace of Mind: Jukeboxy’s Comprehensive Approach

At Jukeboxy, we bring a peace of mind. When it comes to background music for your car dealership, ensuring that every track is not only enjoyable but also complies with the Copyright Law is our top priority. That’s why Jukeboxy’s background music is fully licensed by a spectrum of prominent organizations, including ASCAP, BMI, SESAC, GMR, SoundExchange (USA), SOCAN, and Re:Sound (Canada). But what does this comprehensive licensing mean for your business?

Each organization represents an important piece of the licensing puzzle, ensuring that the artists, songwriters, and performers behind the music receive fair compensation for their work. From the major labels that dominate the charts to the indie gems that add a unique flavor to your playlists, Jukeboxy’s licensing covers the entire spectrum. It’s a comprehensive approach that guarantees the legitimacy of every track, creating a legal environment for your showroom.

The Cost-Efficient Advantage: Saving Dollars, Not Just Cents

Let’s talk dollars and sense. If your brand were to individually secure licenses from ASCAP, BMI, SESAC, GMR, SoundExchange (USA), SOCAN, and Re:Sound (Canada), the costs could quickly spiral. Each organization comes with its set of fees and covering them all separately could mean shelling out a substantial amount annually. The larger your showroom, the more you’d be paying.

Jukeboxy: Your Budget-Friendly Music Streaming Service

This is where Jukeboxy takes the stage as your budget-friendly partner. By bundling these licenses into our service, we simplify the process for you and offer a cost-efficient solution. Subscribing to Jukeboxy means you get the entire licensing for a fraction of the cost. It’s not just about enjoying curated playlists; it’s about enjoying them without spending big amounts.

A Sound Investment: Your Savings, Your Advantage

In the competitive world of car dealerships, every dollar counts. By choosing Jukeboxy Music, you’re investing in legal background music and making an affordable financial decision. It’s an investment that goes beyond creating an enhanced atmosphere—it’s about ensuring your budget works as hard as you do.

So, Elevating Car Dealership, why pay more for individual licenses when you can get the full ensemble with Jukeboxy? Join us in creating a budget-friendly, legitimate, and enjoyable soundtrack for your showroom. 

Boosting Sales Through Background Music

Consider background music as your silent salesman, working behind the scenes to influence customer behavior and enhance satisfaction. At Jukeboxy, our carefully curated playlists, extensive music library, and user-friendly scheduling features give you the tools to fine-tune your showroom’s atmosphere. Whether you’re aiming for an energetic vibe to match a bustling day or a more relaxed atmosphere for a laid-back weekend, we’ve got the beats to suit your brand’s unique personality.

Your Brand, Your Voice: Branded Announcements with Jukeboxy

Why settle for generic radio ads when you can showcase your brand with Jukeboxy’s in-store messaging feature? Seamlessly integrate targeted audio messages into your playlists, turning the browsing experience into an engaging and informative journey. With Jukeboxy Music’s in-store audio messaging feature, delivering timely information about special offers, new vehicle arrivals, and exclusive promotions directly to customers as they explore your showroom is super easy. It’s not just about music; it’s about creating a complete and immersive shopping experience.

Navigate the Future with Jukeboxy: Your Roadmap to Success

Car sales business is ever-evolving. Staying ahead in such markets means embracing innovative solutions. Jukeboxy isn’t just a music streaming service; it’s your strategic partner in crafting an atmosphere that drives sales, enhances customer satisfaction, and solidifies your brand identity. So, Elevating Car Dealership, level up your showroom experience with Jukeboxy Music. Bid farewell to outdated trends, and let’s hit the road to a more engaging, more branded, and more successful dealership journey.

Rev up your showroom experience with a 14-day free trial of Jukeboxy Music – no credit card, no commitment. Just pure, licensed music tailored to your dealership’s vibe. Sign up today and discover how the right tunes can drive sales and create the perfect atmosphere. Your journey to an enhanced showroom begins here, risk-free!

Elevating Car Dealership Atmosphere with Jukeboxy. Sign-up and try Jukeboxy for free here!

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Environmental factors can have a powerful effect on our mood and productivity. Creating a space that helps us stay focused, energized, and motivated throughout the workday is crucial. Here are some key considerations for selecting the perfect elements to enhance productivity in the workplace:

The Effect of Music on Mood and Productivity

Research has shown that music can have a significant impact on our mood and productivity levels. It can help to reduce stress and anxiety, improve our mood, and increase our focus and motivation. The right music can also help to create a positive and enjoyable work environment.

The Importance of Selecting the Right Tempo, Genre, and Volume

Tempo, genre, and volume all play important roles in optimizing workplace productivity with music. The tempo can affect our heart rate and breathing, while the genre can influence our emotional state and overall mood. The volume levels can also impact our ability to concentrate and stay focused.

For example, faster tempos are ideal for tasks that require high levels of focus and energy, such as data entry or brainstorming sessions. Slower tempos are better suited for tasks that require more creative thinking, such as writing or designing. Classical music has been shown to be particularly effective at improving focus and productivity due to its complex and calming melodies.

Extra Read: Music Genres

The Concept of the “Mozart Effect” and its Potential Impact on Productivity

The “Mozart Effect” refers to the theory that listening to classical music, particularly the works of Wolfgang Amadeus Mozart, can improve cognitive performance and productivity. While the theory has been disputed, many people still find that listening to classical music helps them stay focused and productive throughout the workday.

Overall, selecting the right music for the office environment can have a significant impact on mood, productivity, and overall work satisfaction. By considering the tempo, genre, and volume of the music, you can create the perfect atmosphere for your work environment.

Best Music for the Office Environment

Selecting the right music for the office environment can be a daunting task.

Here are some factors to consider when choosing the perfect music for your workplace:

• The nature of the work being done in the office
• The size and layout of the office space
• The personal preferences of employees
• The noise levels of the surrounding environment
• The company’s brand and image
• Recommended genres for different types of tasks

For tasks that require high levels of focus and energy, such as data entry or brainstorming sessions, try:

• Electronic music, such as techno or trance
• Pop or rock music with upbeat tempos
• Hip-hop or rap music with energetic beats

For tasks that require more creative thinking, such as writing or designing, try:

• Classical music, such as piano sonatas or string quartets
• Jazz music with smooth and calming melodies
• Ambient or instrumental music with atmospheric soundscapes

For energetic and upbeat music:

“High Tempo – Recent Pop” playlist

“Upbeat Happy Hour” playlist

“Popular Dance” Playlist

For calming and relaxing music:

“Classical Music for Studying” playlist

“Popular Smooth Jazz” playlist

“Relaxing Songs” playlist

Sheet Music for the Office: A Unique Option

While pre-recorded music is a popular option for office environments, using sheet music can be a unique and effective alternative.

Here are some benefits of using sheet music in the office:

Customization: With sheet music, you have the ability to customize the music to fit your specific office environment and tasks.

Focus: Sheet music provides a way to eliminate distractions caused by lyrics and other elements of pre-recorded music, allowing employees to focus more easily.

Mental stimulation: Playing music from sheet music can provide a mental workout for employees, helping them stay alert and engaged throughout the workday.

Music for Workplace Atmosphere

Hire a pianist: If you have the budget and space, hiring a pianist to play live music in your office can be a great way to create a unique atmosphere.

Encourage employee participation: Consider creating a music club or offering piano lessons to employees who are interested in learning to play. This can create a sense of community and provide a fun activity for breaks or after-hours.

Placing sheet music in common areas such as break rooms or waiting areas can provide a source of entertainment and mental stimulation for employees and visitors.

Music Licensing for Offices

Playing music in a public space, such as an office, requires a license to ensure that the appropriate royalties are paid to the artists and copyright holders.

Here’s what you need to know about music licensing requirements for businesses:

Music licensing for businesses is typically handled by performance rights organizations (PROs), such as ASCAP, BMI, SESAC, and GMR. These organizations collect royalties on behalf of songwriters, composers, and music publishers when their music is played in public spaces.

Extra Read: A Guide to ASCAP Licensing for Music in Your Business

Incorporating music into the office environment can have a positive impact on mood and productivity, as long as the right music is selected. Consider the tempo, genre, and volume of the music when making your selection, and remember the potential benefits of the “Mozart Effect.”

Jukeboxy offers a wide range of music solutions for businesses, including carefully curated playlists to incorporate into your office environment. Our music solutions include all necessary licensing fees, so you can enjoy worry-free music playback while ensuring that artists and copyright holders receive their due compensation. Contact us today to learn more about how we can help enhance your office environment with the perfect music selection.

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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.

The post What to Know about Music Licensing? appeared first on Jukeboxy Blog.

BMI Music License (Broadcast Music, Inc.) is a music performing right 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 the music that 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 tasked with collecting licensing fees later distributed as royalties to the artists they represent. 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, million 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 music 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 the proper licensing puts your business owners liable for fines that add up to thousands of dollars or other legal action from copyright licensors like 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 music license for businesses costs a handsome fee of $250 to $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 music licensing fee would be $460 per year. And the more speakers you have and new locations, the higher the cost goes. However, the BMI music license fees vary and have exceptions for specific businesses and use cases specified by BMI.

The BMI music 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. However, this is where the disparity comes in, and the larger you want your playlist to be, the more you’ll have to pay licensing fees. 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 to 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. 

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The post What is a BMI licensing for businesses, and why do businesses need to comply with Copyright Law? appeared first on Jukeboxy Blog.