We often are asked for advice about whether it’s necessary for licensing ASCAP, BMI For Hold Music. Note, this article is not an attempt to provide legal advice. We recommend consulting a qualified lawyer. However, we do have experience with ASCAP and BMI because we are a professional music on hold provider that pays licensing fees on behalf of our customers.
The more important question every business should ask is, “What do I want my callers to hear while they wait on hold?” Music with voice may be a better choice for your business, so please read our article on music vs. voice on hold. If you are still interested in obtaining proper licensing for hold music, we can help you explore what’s involved.
ASCAP, BMI, SESAC, GMR. The Performance Rights Organizations in the US.
Performance rights organizations (PROs) represent songwriters, composers, and music publishers. They collect fees from businesses and broadcasters to compensate their members. In the US, there are five PROs. A majority of writers and publishers in Canada are represented by SOCAN.
By engaging a hold music company such as Easy On Hold, your music licensing obligations should be met. (We can only speak for Easy On Hold, so it’s best to check the licensing when choosing a music onhold company.) Alternatively, you may contact the PRO or PROs that represent the composers and publishers of the music you are using. If your company is considering “royalty-free music” please see our blog post on the use of so-called “royalty free music”. It may not cover all of the necessary licenses.
How much does it cost for an ASCAP BMI License For Hold Music?
Will you be playing songs that are licensed by ASCAP only? BMI only? SESAC? Global Music Rights? All of the above? A great reason to use a music provider like Easy On Hold is that you may not know which PRO to pay. You see, it’s all about knowing the publisher and composer affiliations.
A single location business can expect to pay in excess of $200 per year per licensing organization. Larger organizations with more users (or phone extensions) would pay much more.
You will be asked to send in reports to each PRO to tell them which artists and songs you are playing. Therefore you should consider whether your staff has the bandwidth to complete reports.
Then there’s the issue of ephemeral rights, the costs paid to record companies for using their recording on your phone system or server. These fees can be extreme. As a result, most businesses engage a music-on-hold company.
Hold Music Requires Licensing
Music is important. We usually hear music when our call is being transferred or if a call agent or business places us on hold because we need to know that we have not been disconnected. Music creators are protected by licensing laws, so you will be responsible for knowing the basics of music licensing. Talk to a competent lawyer or ask Easy On Hold for information about how proper licenses are covered by your music on hold company.
Source(s):
http://www.ascap.com
http://www.bmi.com
http://www.sesac.com
http://www.socan.com
