RADIO AND CD MUSIC ON HOLD
Why You Can't Play "Just Any Radio Station or CD" On Hold
From BMI (Broadcast Music, Inc.) a performing rights organization. BMI collects license fees on behalf of its songwriters, composers and music publishers and distributes them as royalties to those members whose works have been performed.
Q:
Our music-on-hold system uses programming from local radio stations. Aren’t the stations already licensed?
Though radio stations are licensed with BMI to perform the music they broadcast, that agreement does not cover further public performance by those receiving the radio broadcast signal. When radio music is used in music-on-hold, that use is a separate performance under the copyright law.
Q:
So, I should pay licensing fees. If we have a music-on-hold system in our office, how are fees assessed?
If you use a service, such as Music On Hold by Easy On Hold, ask whether your hold music provider is properly paying royalty fees on your behalf. If not, you are obligated to pay fees. Music on phone-hold system fees are based on the number of trunk lines your office has, which is the number of different individual telephones you have with music-on-hold capabilities. In addition, each office would need its own license.
Q:
We use our own tapes and CDs on our telephone. Isn’t this our private property to play where and when we like?
Although, most people buy tapes and CDs thinking they are now their property, there is a distinction in the law between owning a copy of the CD and owning the songs on the CD. There is also a difference between a private performance of copyrighted music and a public performance. Most people recognize that purchasing a CD doesn’t give them the right to make copies of it to give or sell to others. The record company and music publishers retain those rights. Similarly, the music on the CDs and tapes still belongs to the songwriter, composer or music publisher of the work. When you buy a tape or CD the purchase price covers only your private listening use, similar to the “home” use of “home” videos. Once you decide to play these tapes or CDs in your business, it becomes a public performance.
Q:
Does The price Of the music-on-hold system we purchase include performance licensing fees?
Some providers of customized music-on-hold programming may include music licensing fees in their price. Easy On Hold does. Easy On Hold pays composers and publishers significant blanket fees on behalf of clients using the music on hold. Other firm offering phone on hold music service may be creating liabilities for you. Be certain your provider utilizes unlicensed music for on-hold productions. If you are uncertain, ask your service whether or not they do include the music licensing fees in their price.
Q:
If we choose to pay BMI directly, how do we report music usage under our Music On Hold Agreement?
You will submit a report (on a form provided by BMI) indicating the number of telephone trunk lines used to provide music-on-hold during the previous contract year. If necessary, your fee will be adjusted based on this report.
More Information About Music On Hold Licensing
Can I Use Radio or CD Music On Hold?
Understanding Music Licensing Fees
Easy On Hold offers only properly licensed music for your messages on hold productions. If your office is playing on music on your phone hold button and you're not sure if it is properly licensed, take a moment to review this information. Radio or CD music on hold must be licensed. If you have a custom made on hold message production in use on your phone lines, it is your responsibility to be an informed consumer.
Music Licensing Is Your Responsibility
How To Avoid Fines: Use Music On Hold Legally
Custom-scripted on hold messaging provides the right message to the right people at the right time. Callers are tuned in to you and what you have to offer, so that's prime time for making a good impression. Even with the more powerful marketing potential custom music on hold messages provide, the cost is significantly less than national music services, do-it-yourself solutions, or (gulp) fines and fees.
