Music Licensing for Hotels, Motels, and other Lodging Establishments

Musical compositions, like other copyrighted creations such as videos, computer software, magazines and books, are the legal properties of their creators. The copyright law protects the musical works of songwriters, composers, and music publishers by granting them the exclusive right to perform their works in public. A Music Performance Agreement, in turn, gives you the right to perform these musical properties in a business setting.

Although most people buy tapes, CDs, or digital audio files thinking they are now their property, there is a distinction in the law between owning a copy of the music and owning the songs on the CD, etc. There is also a difference between a private performance of copyrighted music and a public performance. When you buy a tape, CD, or digital audio file, the purchase price covers only your private listening use, similar to the "home" use of "home" videos. Once you decide to play these tapes, CDs, or your iPod in your business, it becomes a public performance.

Yes, but only nominally and not for the public performance of their works, which is a separate use. Since in many instances the songwriter or composer is different than the artist performing the work, approximately 50%, and in some cases as much as 75% of a songwriter's income comes from the public performance of their work. This makes the public performance right a critical component of the songwriter's income and is what enables them to continue to create music for use in your business.

About one out of every two songs played on radio is a BMI-licensed song. The BMI repertoire also includes the music of songwriters and composers in more than 60 other countries and includes numerous Grammy, Country Music Association, and American Music Award winners. BMI writers also represent the largest percentage of inductees into the Rock & Roll Hall of Fame, account for one-half of all the winners of the coveted Pulitzer Prize in the field of classical music, and have received the most Rhythm & Blues Foundation Pioneer Awards and Downbeat Jazz Poll Awards.

BMI currently represents more than 6.5 million musical works. For a list of these works and the more than 300,000 songwriters, composers, and music publishers who are affiliated with BMI, please visit our web site at http://www.bmi.com/gl. You can also call the BMI repertoire information line at 1-800-800-9313 where you can request information on specific song titles.

Since it's your business that's benefiting by the performance of music, you are responsible for ensuring your organization is properly licensed. This responsibility cannot be passed on to anyone else even if musicians hired are independent contractors.

Many Commercial Music Services (CMS) are licensed with BMI for the audio-only programming they provide to the venue. The venue must confirm that a particular CMS is appropriately licensed with BMI. There are several limitations in BMI’s agreement with the CMS providers that will not allow them to license on the venues behalf. Those limitations apply and the venue must obtain its own licensing with BMI if:

• The venue is charging an admission fee or cover charge of any kind;
• The venue utilizes the programming for an accompaniment to dancing or is used by a DJ/VJ;
• The venue utilizes the programming for instructed health club classes.

For all other types of live or recorded music, which include but are not limited to tapes, records, CD’s, VJ’s, televisions, free-play jukeboxes, Karaoke or other digital audio not provided by the CMS, the venue must obtain the appropriate licensing from BMI.

Once appropriate licensing is obtained from BMI, the hotel is covered for the use of BMI music. However, it is important to note that if any of the above applies, or music is used which is represented by either of the other two performing right organizations, the establishment needs to secure additional licensing to cover all its music uses.

Yes, TV, cable, and radio stations enter into license agreements with BMI. However, these agreements do not cover the re-broadcast of such TV, cable, and radio to the public at properties like yours. In fact, public performances of radio and TV are specifically addressed in Title 17, Section 110(5) of the U.S. copyright law which states that any establishment, other than a food service or drinking establishment, that is 2000 square feet or larger must secure public performance rights for TVs or radios if the following conditions apply:

• For TV, if the property is using: more than four TVs; more than one TV in any one room; or if any of the TVs used have a diagonal screen size greater than 55 inches.
• For radio, if the property is using: more than six loudspeakers; or more than four loudspeakers in any one room.

BMI does not make a profit on licensing fees. All fees, less BMI's operating expenses, are paid to our affiliated songwriters, composers, and music publishers in the form of royalties. Currently, more than eighty-seven cents of every dollar of your organization's licensing fee goes to our affiliated copyright owners.

There Is A One Percent AH&LA Member Discount for each hotel, motel, or resort which is a member in good standing of the American Hotel & Lodging Association and its member state associations, provided its BMI account is current.

BMI is happy to make speakers available for presentations to your state association by contacting us at 1-888-689-5264 (toll free).