More than one-thousand songs played on the Peloton media network are named in the suit. Among them are Maroon 5\u2019s \u201cAnimals,\u201d Justin Timberlake\u2019s \u201cSuit & Tie,\u201d Kesha\u2019s \u201cDie Young,\u201d and the A Star Is Born<\/em> hit \u201cShallow.\u201d Could the company have simply forgotten to pay proper music licensing fees?<\/p>\n\n\n\n The music industry is also coming down hard on internet service providers, saying they’re not doing enough to stop illegal music downloads. Billboard Magazine reports on the issue this week:<\/p>\n\n\n\n More than 50 leading record labels and publishers have filed a lawsuit against Charter Communications<\/strong>, Inc. for contributing and profiting off its internet subscribers\u2019 copyright infringement. <\/p>Billboard Bulletin<\/cite><\/blockquote>\n\n\n\n The suit against Charter (providing internet service under the name Spectrum<\/strong>) states, \u201cIt is well-established law that a party may not assist someone it knows is engaging in copyright infringement.” That means if the internet provider has some knowledge that infringement is happening, it is required to take action.<\/p>\n\n\n\n Businesses<\/strong> using internet-based music sources<\/strong> without proper licenses should also take note. The companies that provide internet service to them are being pressured to shut down connectivity to stop illegal use of music.<\/p>\n\n\n\n Several record labels brought a case against Cox Communications<\/strong><\/a> in 2020, claiming the internet service provider knowingly allowed subscribers to share and download infringing songs via peer-to-peer sharing platforms such as BitTorrent. The jury awarded the record labels damages of $1 billion. Copyright infringement is an expensive risk.<\/p>\n\n\n\n This leads to questions for communications platforms and the service providers that configure them. Where is the hold music coming from? MSPs and platform providers take a “not-my-problem” stance, but could be violating infringement laws by helping their clients use unlicensed music. As we’ve seen, the music industry is pursuing communications providers as well as individual businesses.<\/p>\n\n\n\n Music On Hold<\/strong> can be licensed through Easy On Hold, which states in an online article about music licensing<\/a>.<\/p><\/blockquote><\/figure>\n\n\n\n Telephone equipment makers typically warn installers about music on hold licensing<\/strong>, in hopes of sidestepping any liability for themselves. The Toshiba Strata phone system installation manual says:<\/p>\n\n\n\n Important Notice \u2014 Music-On-Hold<\/strong> In accordance with U.S. Copyright Law, a license may be required from the American Society of Composers, Authors and Publishers, or other similar organization, if radio or TV broadcasts are transmitted through the music-on-hold feature of this telecommunication system. Toshiba America Information Systems, Inc., hereby disclaims any liability arising out of the failure to obtain such a license. <\/p>Toshiba Phone Hardware Installation Warning<\/cite><\/blockquote>\n\n\n\n Microsoft Teams Phone also carries a warning about hold music licensing<\/a>, as do almost all communications hardware and software companies.<\/p>\n\n\n\n The restaurant manager that connects a phone, computer or iPad to the internet and plays a personal music stream for patrons is actually assisting the restaurant owners in violating the law and can be held accountable<\/strong>. If you are asked to have something to do with the music in a business, it would be smart to check to see if music licensing fees are up to date. <\/p>\n\n\n\n Members of our team regularly talk to restaurant owners and managers about the music they play. How do they choose the music? Where does it come from? More than 50% of the time, smaller restaurants are not paying music licensing, opting for Pandora or Spotify streams from personal accounts. Many restaurant owners we spoke with seem to have an attitude of, “wait and see if I get caught.” Business owners often mistakenly assume that because they are small they won’t be noticed. One small restaurant we spoke with showed us the letter sent to them by music performance rights organization BMI, saying they need to fix the problem. Our advice: The music industry is very serious about licensing.<\/p>\n\n\n\n ASCAP, The American Society of Composers, Authors and Publishers<\/strong>, has pulled the trigger on lawsuits aimed at collecting fines and fees from establishments that have failed to pay for music licensing. Suits have been filed in Baltimore, Chicago and New Orleans, San Francisco and many other locations.<\/p>\n\n\n\n “Our goal is to have businesses comply with the law so that our members can be compensated for use of their work,” said ASCAP Executive Vice President of Licensing Stephanie Ruyle<\/strong> in a statement from ASCAP. <\/p>\n\n\n\n In a video report released in February, 2019,<\/a> Austin Music News reports that ASCAP has sued Austin, Texas venue The Nook<\/strong> as part of nationwide effort to collect fees. The Jacksonville Daily Record<\/a> reported that the venue Surfer The Bar<\/strong> has been named in a similar suit. Their fine could reach as high as $90,000, just for playing three songs.<\/p>\n\n\n\n The plaintiffs ask the court to permanently restrain the bar from publicly performing copyrighted material and that the defendants be ordered to pay $750 to $30,000 for each<\/strong> of the three counts of alleged infringement, plus attorney fees. <\/p>Jacksonville Daily Record<\/cite><\/blockquote>\n\n\n\n On Feb 4, 2019, The Riverfront Times (St. Louis, Missouri) reported that Sunset Hills bar JP’s Corner Bar was hit with a lawsuit from BMI, Broadcast Music Incorporated.<\/strong> BMI is just one of four<\/strong> music performance rights organizations that legally collect fees from businesses. Licensing organizations are sending “licensing executives” to go into businesses with a custom app that will listen for songs the organization has under license. Once the songs play, the chase is on. <\/p>\n\n\n\n Another venue in the St. Louis area, Beale On Broadway, was targeted by BMI in 2017 and settled out of court. The bar is no longer in business. Daniel Hill<\/a>, writing in the Riverfront Times<\/strong> stated:<\/p>\n\n\n\n …the industry’s practice of sending spies to bars and restaurants to sniff out and heavily fine small business owners has generated a fair amount of criticism. The fees can be difficult for businesses to absorb; in some cases the venues are forced to close their doors. <\/p>The Riverfront Time<\/cite><\/blockquote>\n\n\n\n Many restaurant owners ask, “does my background music license cover live music?”<\/strong> Total Food Service Magazine<\/a> says, “If you sometimes feature live music, a DJ spinning, karaoke, etc., additional, separate licenses must be obtained from the performing rights organizations.” Even if you have a live artist play once per month, you’ll be on the hook for the licenses for live music. Such music licensing fees are paid in addition to other types of fees.<\/p>\n\n\n\n The business music service Brandi Music<\/a><\/strong> has helped businesses “get legal” with their background music. Brandi pays all performance licenses for clients’ commercial use of music. In turn, Brandi pays ASCAP, BMI, SESAC and Global Music Rights as well as Sound Exchange on behalf of their clients. Services start at $29 per month, a lot less than fees charged by ASCAP and friends.<\/p>\n\n\n\n In an article at brandimusic.com, businesses are warned against using personal music subscription services<\/a> (Pandora, Spotify, etc.) in their business:<\/p>\n\n\n\n Streaming services are not licensed for public use.<\/strong> To quote the agreement you made with Pandora when you signed up for that personal account, “…for your own personal, non-commercial purposes…”. Spotify<\/strong> says, “Spotify is for personal entertainment only and not for commercial use. This means it can\u2019t be played in public places such as bars, restaurants, stores, schools, etc.”. <\/p>brandimusic.com<\/cite><\/blockquote>\n\n\n\nIndustry Goes After Charter Communications<\/h2>\n\n\n\n
Record labels sue, win a $1 billion case<\/h2>\n\n\n\n
Service providers assist in infringement<\/h2>\n\n\n\n
Restaurants Violate Music Licensing Laws<\/h2>\n\n\n\n
ASCAP Seeks Music Licensing Fees<\/h2>\n\n\n\n
BMI (Broadcast Music Incorporated) Continues to Seek Music Licensing Fees<\/h2>\n\n\n\n
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Music Licensing Fees For Live Music<\/h2>\n\n\n\n
Service Covers All Music Licensing Fees<\/h2>\n\n\n\n
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