Will a licence from a performing rights organisation be enough to cover the music on my app or digital service?
If you’re launching an app or digital service involving music and are considering licences from performing rights organisations (PROs), this article will help clarify what they are and how they work. It will also assist you in determining whether these types of blanket licences from PROs will sufficiently meet your music licensing needs or if more bespoke agreements with rights owners might be necessary.
What are performing rights organisations (PROs)?
A performing rights organisation (PRO) helps musicians and songwriters get paid when their music is played in public spaces like shops, restaurants, and in some cases online. They grant performance rights and collect royalties from these places, ensuring fair compensation for artists. Many PROs, such as PRS and PPL in the United Kingdom, SACEM in France, and GEMA in Germany also collect money when music is played on radio and TV to distribute to rights owners.
What are PRO licences?
In the USA, PROs such as ASCAP, BMI and SESAC offer blanket licences which provide one type of solution for obtaining music licences for use in apps and digital services.
These licences typically cover the publishing rights of musical works, granting the right to use the compositions which include the underlying musical and lyrical elements. They allow the use of a wide range of music from the PROs’ repertoire without negotiating individual agreements with songwriters, composers or publishers.
However, how suitable the PRO licences are for a digital app or service depends on the specific use case and the required rights.
What can PRO licences for apps and digital services let you do?
PRO licences mainly cover the public performance rights for non-interactive uses of music in a manner similar to traditional radio broadcasts (i.e. the user cannot select what they want to listen to and the selection is not personalised).
These licences can cover a wide range of music uses, including:
- Background music
- Non-personalised or selective playlists
- Internet radio
However, it’s important to keep in mind that in certain cases, e.g. if you need music from specific publishers, you may need to seek licences directly.
What are the limitations of PRO licences?
PRO licences in the USA only cover the public performance rights for non-interactive uses of music, which comes with certain limitations.
The nature of your music usage will determine the specific publisher rights you need a licence for, and whether relying solely on PRO licences would be suitable.
‘Publishing rights’ is the umbrella term used to refer to the various legal rights associated with musical compositions (songs).
The most common publishing rights are:
- Public Performance Rights: The right to publicly perform the song, e.g. during concerts, on the radio, in clubs, restaurants or other public venues (including those online).
- Mechanical Rights: The right to license the composition for use in audio recordings, such as CDs and digital downloads.
- Synchronisation (or Sync) Rights: The right to license the composition for use in audiovisual works, such as movies, TV shows, commercials and online videos.
- Print Rights: The right to publish and distribute the sheet music or lyrics of the song.
For example, for user generated content that allows users to sync audio with their own video content, you would not only need a licence for the public performance rights, you would also need one for the mechanical and sync rights too.
In such cases, exploring other licences in addition to PRO licences would be necessary. This often involves engaging directly with rights holders or making use of specialised third-party services like Blokur.
Territory restrictions for global music apps
One major issue that apps and digital services find when considering PRO licences are the international limitations. This is because these types of licences are typically limited to the territories in which the PRO operates.
As shown in the image above, ASCAP’s blanket licence primarily covers the United States. If your app operates globally and plays music outside ASCAP’s stated territories, you will need to obtain licences from the relevant PROs in each territory where you want your app to be available. This can involve contacting multiple PROs, navigating their licensing process and understanding and complying with all the different local copyright laws.
In short, if your app will operate in 100 territories, you may need to contact 100 PROs!
How much can blanket licences from PRO’s such as ASCAP, BMI, SESAC etc cost?
The cost of PRO licences from organisations such as ASCAP, BMI and SESAC can vary based on several factors. These include:
- The specific use case
- The size of the app or service
- The amount of music being used
- The revenue generated by the platform etc
PROs typically have different pricing structures based on the nature and scale of the music usage. They may offer tiered pricing based on factors such as the number of sessions or plays, the revenue generated by the platform or a combination of both.
It is always recommended to contact the PROs directly or consult their websites for accurate and up-to-date pricing information. You can find information for major PROs here:
Most Significant Non-US PROs
- PRS (UK)
- GEMA (Germany)
- SACEM (France)
- SOCAN (Canada)
- APRA (Australia)
- IPRS (India)
- Argentina (SADAIC)
- Chile (SCD)
- Colombia (SAYCO)
- Uruguay (AGADU)
- See more here
Challenges in obtaining global music licences for apps and what to consider
While licences from PROs like ASCAP can provide a starting point for licensing music in an app or digital service, they may not cover all use cases, and there currently isn’t a single global service that can handle music licences for apps operating in different territories.
Therefore, depending on your specific requirements, you may need to explore additional licences or engage with rights holders directly to ensure compliance with copyright laws in different territories. This may require seeking guidance from legal professionals or specialised licensing services like Blokur, who can assist you in navigating the complexities of obtaining the right music licences.
If you’d like to find out how Blokur can assist you with acquiring music licences for your app or digital service. Feel free to get in touch!
