Laws on Music Broadcasting
Music broadcasting is replaying live or pre-recorded copyrighted music to the general public through electronic medias such as radio, television or the internet. Music broadcasts in many different places such as stores and restaurants for people's listening pleasure. However, many establishments that broadcasts music for the general public must adhere to costly laws and tedious procedures.
Blanket License
The U.S. Copyright Act requires that most establishments that broadcast music for the general public from television and radio sources must acquire a blanket license. A blanket license grants permission to establishments to play an unlimited amount of copyrighted music without having to seek permission from individual copyright holders, songwriters, composers and music publishers. A blanket license is purchased from performing rights organizations for an annual fee which covers music licensing costs and royalties owed to the individuals affiliated with each song. Performing rights organizations such as ASCAP (American Society of Composers, Authors and Publishers), BMI (Broadcast Music Incorporated) and SESAC (Society of European Stage Authors and Composers) provides blanket licenses to meet establishments' needs. Failure to complete required forms and receive proper licensing can result in lawsuits and pricey fines.
Fairness In Music Licensing Law
In 1998, the Fairness in Music Licensing law was passed. The law exempts more establishments from paying music licensing fees for broadcasting music from television and radio sources only. The extended licensing exemptions apply to establishments following certain specifications. Bars, grills and restaurants must be smaller than 3,700 gross square feet. Any establishment that exceeds the required measurements can still qualify if: six or fewer speakers are used throughout the building with four or less being used in one room, or four, larger than 55 inches (screen size measured diagonally) televisions used with only one in each room combined with the speaker requirements. In addition, each establishment should broadcast music no further than its establishment and charge no admission fees. American and international copyright owners, music makers and publishers stand to loose millions of dollars from the enactment of this law.
The Fairness in Music Licensing law includes a music store exemption that extends licensing exemptions for retail businesses that broadcasts music for the purpose of selling it as well as the electronic medias (CD players, televisions and radios) that can play the music. Retail businesses must be less than 2,000 gross square feet to be exempt from paying music licensing fees, but only if they broadcast music through radio and television sources only.