The Music Licensing Issue
All Sound Solutions On Hold products contain royalty-free music and copyrighted messages!
Unlike music played over the radio, or any other store-bought music, the music contained in all Sound Solutions On Hold productions is royalty-free. Once purchased, no other royalties are due to Sound Solutions On Hold or any other third-party music licensing agencies such as ASCAP or BMI or SESAC. As a courtesy to our clients, we provide our productions with an indefinite license . . . . this means that the productions are yours to use . . . for as long as you like . . . and you never have to worry about licensing or copyright issues!
As a point of reference, should you wish to play a radio or some other form of non-licensed music over your telephone system, the following applies:
The Law
By statutory definition, since a corporation or other company is a place 'where a substantial number of persons outside of a normal circle of a family and its social acquaintances is gathered,' (17 U.S.C. SECTION 101) it is a public place for copyright purposes. Whether the performance is by the playing of a CD or tape, by a radio tuned to a particular station, or via music-on-hold (which constitutes a public performance by virtue of its being a transmission to the public), permission must first be obtained in order for the use of that music to be lawful."
The Better Business Bureau has a publication you may be interested in reviewing that discusses this information in detail. You may view a copy by clicking here.
The Organizations
Songwriters and music publishers are represented by three organizations...Broadcast Music, Inc. (BMI) and American Society of Composers, Authors and Publishers (ASCAP) and (SESAC, Inc.). These performing rights organizations, as they are formally known, represent the writers and publishers who own the copyrights.
The Penalties
The law allows copyright owners to receive as damages for infringement between $500 and $20,000 for each work infringed upon.
Enforcement
ASCAP, BMI and SESAC employ a small army of people whose sole job is to call businesses and attempt to be placed on-hold. On the first call, violators are offered the opportunity to purchase an annual license for the rights to play a radio on-hold or music. Violators who refuse to purchase the license are warned that they are in violation of copyright laws, and they must cease the play of the radio on-hold. Users who are caught in violation and refuse to pay license fees are typically called by ASCAP and BMI subsequently to see if they have ceased playing the radio or other non-licensed music source. Violators who are caught, again, may receive substantial monetary court judgments against them. Some judgments attempt to recover previous licensing fees that can go as far back as from the time the business began operating.
Licensing
To obtain a license to play a radio or any music on-hold, contact each of the agencies listed above. You must contact each of the agencies to insure you are not playing any music licensed by their organization. Annual fees generally run approximately $165 for up to ten telephone lines (per organization) . . . . or over $1,000.00 for three years.
We hope that you may have found this information to be useful. If you have any questions about our productions . . . or any of our programs, please feel free to contact us at your convenience.