Music licensing

Music licensing is the licensed use of copyrighted music. Music licensing is intended to ensure that the owners of copyrights on musical works are compensated for certain uses of their work. A purchaser has limited rights to use the work without a separate agreement.

The following words and phrases appear in discussion of music licensing:

Rights organizations sample radio and television broadcasts, offer blanket licenses to broadcasters, and investigate complaints to detect and prevent unauthorized performances.

In the US, ASCAP and BMI hire field agents to monitor public performances. The field agents may act as agents for the organization, negotiating a fee for a blanket license, but individuals may negotiate directly with the organization. The fee may be presented on a take-it-or-leave-it basis, but in case of disagreement, the fee may be appealed to the Federal District Court in the Southern District of New York.

Broadcasting, in the context of music licensing, means the playback of recorded or live music for groups of people beyond what might be normally expected in a social setting. Legal claims are filed frequently against bookstores, bars, and live music venues that broadcast music without first obtaining a performance license.

The music broadcast in grocery stores and elevators is a service purchased from one of many organizations that offer it (the largest is Muzak). Part of the fee paid for the service is used to cover licensing costs. Except in very narrowly defined circumstances, noted below under the Section 110 "small business exception," a business, restaurant, or store that plays radio broadcasts or shows TV programs in the premises does not pay a licensing fee.

Radio stations pay fees to licensing bodies for nonexclusive rights to broadcast music. Radio stations and businesses typically pay a flat rate once a year, called a blanket license, which can vary based on the size of the audience, value of the advertising revenues, and amount and nature of music usage. As part of the license contract a radio station may conduct periodic audits of the music being played, with the audit results submitted to the licensing body.

Licensing issues are encountered when television shows or films using copyrighted music are released on DVD format.

When a song is cleared for usage on a TV show, historically to save money, the clearance typically applies only to television airings of the show in question. Thus, when the show is considered for DVD distribution to the home video market, the rights to the song must be renegotiated in order for the song in question to be included on the DVD. Most producers/production companies now include the rights for DVDs or "all media now known or hereafter devised," which assures production companies of the right to re-release without incurring additional licensing fees.

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Wikipedia