Using radio to keep your callers entertained while they wait on hold? Run, don’t walk, and rip the cord out of the wall. Your next sale could depend on it.

Way back in the 90′s, I decided to start Easy On Hold after a chance experience with a local restaurant. One evening, I called up a popular eating establishment to make a reservation, but was promptly placed on hold. While waiting, I heard a radio station playing a commercial for another restaurant across town.

You can probably guess what happened next. I promptly hung up, phoned in a reservation at that other restaurant and enjoyed a fabulous meal. Meanwhile, I couldn’t stop thinking about how downright dumb a business owner would have to be to run content on their hold button over which they had no control whatsoever.

With that, welcome to Easy On Hold, officially launched in 1997, to help businesses understand the importance of giving their callers a great on-hold experience.

So what happens? Typically, the telephone system installer offers to do a favor by plugging a 24/7 audio source (radio) into the music on hold port before signing off on the job. This demonstrates that the on hold port is active and working, but it is also dangerous. In addition to ads for their competitors being heard, rebroadcasting a radio signal on your phone system is not legal. In an article by attorney Mike Wilson, the downside of sidestepping proper music licensing for on-hold use is steep.

Actual damages as well as statutory damages of up to $20,000 can be awarded for each copyrighted song performed without a license. The damages can be up to $100,000 if the infringement is willful. And those who willfully infringe on a copyright for commercial advantage or private gain can be fined up to $25,000, be sentenced to jail time of up to a year,
or both.

Wait, don’t radio stations pay the royalties?

Most people using radio on hold probably are not aware that they’re in violation of any laws, in that they assume the radio station has already covered all licensing costs on their end.  It’s true that radio broadcast stations are licensed to perform the music they carry on their airwaves, but your phone system is technically creating a RE-broadcast. Radio phone on hold music is considered an unlicensed, separate performance under the copyright law. The spirit of the law is that responsibility falls to the end-user, so your re-use of a radio station is therefore subject to fees. Read more: Easy On Hold Whitepaper: Is It Legal To Use Radio On Hold?

Control what your callers hear.

A well-written on-hold program will communicate helpful information about your products, services and other aspects of your company that make you unique–and that affirm in your caller’s mind that, yes, I made the right decision contacting this company.

That misguided restaurant could have maintained the loyalty of a customer that night had it approached its on hold messaging seriously. Then again, maybe we wouldn’t be here today.

In previous postings, I’ve reported collection activities undertaken by ASCAP in order to get cash for playing music on hold. Now I can report on BMI, one of the other licensing organizations in the U.S.

This week an Easy On Hold client contacted us for help with inquiries made by BMI. Here’s a look at the email from the accounting department:

We continue to get pestered by BMI, they are a music licensing organization.  Easy on Hold actually references them in their literature.  The latest call from BMI basically is saying that just because you buy hold music, it doesn’t mean that you don’t owe licensing fees.  I have no idea how this works, but I would suggest you reach out to your contact at Easy on Hold, and see what the law is on this.   – Chief Financial Officer

The Myth Behind Royalty Free Music
Actually, BMI is right: just because you buy hold music does not mean that you don’t owe licensing fees. This is a big myth behind “royalty free music”. You may be purchasing music that is free of mechanical royalties (meaning you can copy it, download it, manipulate it), but it may not include performance rights. These performance rights are the fees BMI is attempting to collect here.

Rest assured, Easy On Hold is on top of this, and is paying performance fees on behalf of all of our clients. Note also that BMI and ASCAP are both very active in seeking fees and fines. Apparently, licensing organizations do no research prior to contacting a business to request money. This means they are randomly calling any business that looks as though they could come up with some form of payment.

If you are contacted by a licensing organization, talk to your music on hold provider directly. If your provider cannot come up with a written contract showing satisfaction of performance fees, fire them and hire Easy On Hold.

Epilogue
This issue was quickly resolved by the Easy On Hold Music On Hold Expert providing written proof of performance rights. The response from the client:

Talked with Julie from Easy On Hold. She provided the document which verifies legitimacy of the license, etc.  Thank you for your prompt and courteous support.  EOH is one of my favorite vendors.  -Theresa

Source(s):

http://www.ascap.com
http://www.bmi.com
http://www.sesac.com
http://www.socan.com

Licensing organizations aren’t letting up. The push is on to collect fees (and in some case penalties) for playing music on hold. It is your responsibility to know how music on hold licensing fees work. Here is a letter just received by one of our clients in Chicago, requesting “payment of fees”. This company will not need to pay, of course, because they use Easy On Hold for professional music on hold service.

I have recently written and contacted you concerning our offer of the ASCAP license to authorize the performance of copyrighted music in your business.  As of today’s mail, we have not received your signed license agreement and payment of fees.

It is important for you to remember that the performance of any copyrighted music in a public establishment must have the permission of the copyright owner, that is, the songwriter or publisher.  ASCAP represents the majority of the world’s most popular music, so our license is the easiest way for you to secure that permission.

The enclosed brochure explains your rights and responsibilities under the copyright law.  If you or your attorney have questions that remain unanswered by our literature, please do not hesitate to contact me at the number below.

Otherwise, please sign the enclosed license agreement and send it to us with fees as specified on the invoice.  An executed copy of the agreement will be returned to you.

For your convenience, you may pay your ASCAP license fees by fax.  Simply complete the credit/debit card information on the invoice and fax it, along with both pages of your signed license agreement, to (615) 691-7724.  You may also pay fees by phone by calling me at the number below and providing me with the appropriate checking account information.
Sincerely,

ASCAP, PO Box 331608-7515, Nashville, TN 37203-9998

Ring Central, a provider of “hosted PBX” telephone service, has made a bad suggestion in their article, Use Your Own Music For Music On Hold.

It’s easy to add anything from classical to classic rock and keep your customers entertained while they wait. Simply add a pre-recorded .wav file, and no doubt, it’ll be music to their ears.

Hold on! Ring Central is missing one very important piece of information: You must not use music for which you do not hold a performance license. Refer to our article, Music On Hold Licensing No Joke. Use of music on your telephone system constitutes a rebroadcast, and therefore requires a music performance license. Fines are steep if music licensing groups such as ASCAP and BMI catch up with you.

It’s true that the use of music on hold will enhance the experience your callers have while holding. It is also true that hold time seems shorter when there’s music on hold. Where you get that music, however, really does matter.

Music with voice on hold is even more effective for keeping callers on the line and connected to your products and services. This type of audio is considered “message on hold” or “on-hold messages” and usually involves a professional hold music message service such as Easy On Hold.

When Easy On Hold creates your custom on hold message production, you’re receiving music that is properly licensed for use on hold.

Can you use your custom Easy On Hold production with your Ring Central phone system?  Yes! Please note, however, that your audio may play from the start each and every time you place your caller on hold. Ring Central may have a work-around for this problem. Be sure to ask. In our discussions with Ring Central, we learned that you may request an arrangement that allows different audio files to play at different times of the day, or even a “random” or “shuffle play” approach using several different files.

Easy On Hold is ready to assist you when creating message on hold marketing announcements for use on your virtual PBX or hosted PBX system.

If you receive a letter from ASCAP asking for music licensing fees, pay attention. They may have the right to demand fees and they’re definitely not fooling around.

Take a look at a letter received at an industrial company in the U.S., warning of fines. This company was being called out because they want to use music on their hold button. Does music on hold require a license? Yes it does. Easy On Hold offers this coverage as part of your regular purchase with us.

The company being asked for licensing money will not have to pay, because the music they’re using on hold is properly licensed by Easy On Hold, the music on hold vendor.

Easy On Hold pays for the rights to not only edit the recorded music for use in advertising on hold, but also for the rights for the end-user to “perform” the music. Any time a piece of music is used in a business, such as music on-hold, it is considered a “performance”.

Do ALL phone on hold companies pay performance rights for their clients? NO. Be careful. The responsibility is that of the end-user. If you are considering putting on-hold music on your telephones, remember that unless you use a competent provider, such as Easy On Hold, you will be ‘on the hook’ to pay ASCAP as well as other licensing organizations including BMI (Broadcast Music Incorporated) and SESAC.