Many Business Owners are unaware, they need a license for playing music

I wrote this article as I'm involved in ensuring I have licenses from clients for their music related masters prior to proceeding with the work. I know it will come as a surprise to many, naturally this was done for the UK market but it must also apply in the USA:

When Companies play music to their workers or use music when placing telephone callers on hold, they require a PRS licence agreement.

If a business includes music in its products or in their telephone on-hold system they need clearance from the owners of the music. They should be aware that penalties exist for non-compliance. This also applies to Wedding Videos, School concerts and events that play music, even as background mood music. In most cases people are simply ignorant of the legal requirements on music licensing and in the main believe that the fact that they have purchased a legal copy of a CD allows them to proceed to use it in some of the ways described earlier.

It's a simple fact that the majority of companies today, small as well as large corporates, banks and building societies etc. use music with the intention of giving their callers something to listen to whilst they are on hold. Others play music during the day to workers in certain production workshops and other environments.

PRS (Performing Right Society) for Music created in Jan 2009 with MCPS (Mechanical-Copyright Protection Society) are the non-profit organization set up to ensure composers, publishers and songwriters are paid the royalties due to them whenever their music is played. This applies to live performances, TV and Radio, CD & DVD Duplication, CD & DVD Replication, in other words, all Duplicators and Replicators require a copy of the licence agreement prior to proceeding with the ‘copying’. It also applies to downloads and streams and everything in between.

It is possible to register works and to become a member of PRS music through their website where setting up an on-line account is very simple. Songs can be registered and amended through the customer account. There is also a comprehensive help centre.

The cost of the music licence will depend on a number of different factors; they include the type of premises, the size of premises and the nature and extent to which the music is used. Apparently around 350,000 businesses in the UK have paid for a licence. There are some exceptions when a licence is not needed like; treatment areas in hospitals, medical day centres, divine worship, civil and partnership ceremonies and lone and home workers.

It is the responsibility of writers of unpublished music or music published by non members of PRS to register the music and make any amendments, as well as publishers with already published music to do so on behalf of their writers. Any music that is co-written and co-published is the responsibility of all parties.

There are over forty different tariffs, which covers everything from music in shops to music on-hold telephone systems. This way there is a fairer charging system according to use. The tariffs paid will also depend on size and type of organization and premises, these will include private business, and government organizations, educational establishments etc. finally it will also include the extent to which the music is used. Royalties are divided between the writers and publishers depending on the publishing agreement. Naturally there are cases when no payment is required, this also applies for small groups and bands who want to hand out a certain amount of copies of their albums free of charge, however, you still require a licence.

As the Chairman of a CD and DVD duplication and Replication company we have, on many occasions had to refuse to proceed with the order due to the customer not having the relevant licence. Many new Groups and Bands leave this to the last minute. They produce their album, have venues booked where they want to either hand out or sell copies and then try and get their master copied. This naturally leaves companies like mine in an invidious position, wanting to help to turn the CD's around quickly but unable to respond without the relevant licence.

Unfortunately, there are some unscrupulous suppliers who are prepared to provide the copying without the licensing. This leaves both parties vulnerable to litigation.

For the songwriter, composer or publisher, when a piece of music is registered, it will allow them to start earning money whenever it is used. This can be when it is played on the radio, TV programme or advertisement, festivals, gigs or indeed when any business uses their music in a way described earlier.

Therefore, budding songwriters and publishers on the one hand and businesses etc on the other would be advised to contact PRS for Music directly or visit their website for more information.

To access further information on this subject go the PRS music website, you can find their website by putting the organisations name in the search engine or call Dischromatics on 01495 243222 for specific advise when requiring CD and DVD duplication and replication.

Do you need a license to play a local bands CD in your shop?

Many thanks in advance,

Stacey

It depends on a number of factors. The best thing is to conct PRS, their website is easy to find.

Let me know if you have a problem

Regards

Must admit I was unaware of this, and then last week we got a letter through saying there was no registered license at our office and we could liable if caught playing music. Basically written in the same tone as the TV license people, and quoting numerous examples such as listening to an ipod.

So even if one of the guys is sat beavering away at his desk with his ipod on, then we become liable for a license.

I'm all for copyright protection, and artists getting rewarded, which is why I buy my CD's and DVD's or download from official sites, or pay for concert tickets.

I can maybe see the implications maybe if you are a restaurant playing music to your customers, or even hold music for the companies phone.

But for someone listening to an iPod?

Smacks of yet another stealth tax for the small business to contend with.

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Precisely!

I knew about the licence for playing open music but had idea about iPod and simular devices for listening to music............that sucks!

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My understanding is that if the music is being used to improve business, then you're liable.

So if it's a Christmas CD putting customers in a Christmassy mood, it's enhancing your business and you pay.
If it's a thumpy Ministry of Sound compilation providing a background tempo to keep your packing workers pepped up, it's enhancing the business and you pay.
If it's chanting Gregorian Monks keeping a stressed-out exec this side of an aneurysm, you pay.

They even made an effort to extract money from a small convenience store in Scotland because, after the business decided it couldn't afford the PRS fee and got rid of the radio, one of the shop workers would sing to herself a capella while filling shelves. Happily they were made to back down on that one.

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The world really has gone beaurocratically mad

If that's not a real word, it should be, and no doubt somewhere there is an investigation department of the made up words division, and a fine is probably already in the post.

Luckily being xmas, I won't get it until August...

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hmmmm........I don't want to be bothered by this licenses when I play my music. I guess no normal human being does. That is why these licenses are put into the background -- considered a MUST.

If what the artists really want is to share music -- then they should say so. In this age, this can be done practically in you garage, bedroom, at home, anywhere.

Otherwise if they want the royalties and all -- I believe that every performance live or not should be began or ended with the the rights/license being played. So there, a nice way of preventing music being played illegally.

---man this is becoming a challenge for both parties and in betweens.

I'd like to imaging those days that bards play their thing -- not a care about licenses and all -- makes you wonder what the world has come to, eh.