Music Licensing for Businesses Using Music on Hold

Though radio stations are licensed with BMI to perform the music they broadcast, that agreement does not cover further public performance by those receiving the radio broadcast signal. When radio music is used in music-on-hold, that use is a separate performance under the copyright law.

The fees are based on the number of trunk lines your office has, which is the number of different individual telephones you have with music-on-hold capabilities. In addition, each office would need its own license.

Some providers of customized music-on-hold programming may include music licensing fees in their price. Others offering this service may be creating liabilities for uninformed clients because they utilize unlicensed music for on-hold productions. If you are uncertain, ask your service whether or not they do include the music licensing fees in their price and to put this in writing.

At the same time that you pay your fee after the first contract year, you will submit a report (on a form provided by BMI) indicating the number of telephone trunk lines used to provide music-on-hold during the previous contract year. If necessary, your fee will be adjusted based on this report.

Although, most people buy tapes, CDs, and audio files thinking they are now their property, there is a distinction in the law between owning a copy of the songs and owning the actual songs. The music on the tapes, CDs and audio files still belongs to the songwriter, composer, or music publisher of the work. When you buy a tape or CD, 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 audio files in your business, it becomes a public performance.

Songwriters, composers, and music publishers have the exclusive right of public performance of their musical works under the U.S. copyright law. Therefore, any public performance requires permission from the copyright owner — or BMI — if it is BMI-licensed music. With a BMI Music License, you can publicly perform all BMI-licensed music.