Music Licensing 101
ASCAP, BMI, SESAC, and GMR: What is a Performing Rights Organization?
Have you ever wondered how artists get paid when a business or venue plays music? Whether it be karaoke night at the local bar or simply background music played throughout the day, U.S. copyright law requires that each business owner gets advance permission to play a copyrighted work.
Advance permission can be obtained in the form of a blanket music license from the four different Performing Rights Organizations, also known as a PROs. These organizations serve as intermediaries between music copyright holders and those who want to play copyrighted music in public.
There are four major PROs in the United States, including: BMI, ASCAP, SESAC, and GMR. It’s important to get the proper blanket licenses from PROs to make sure that copyright owners get paid for their work, and to make sure that you and your business stay protected — if you play copyrighted music without the right licensing, you and your venue could face serious legal liabilities and even go out of business.
Each of the PROs offer different blanket licenses that cover their unique catalogue of musical works and it is the responsibility of the music user to make sure they buy the appropriate license for whatever music they plan on playing. Seem’s easy right? Well, not so much.
In every case it is impossible to know with any certainty what works are included in a PRO’s repertory. For major artists like Drake or Bruce Springsteen, contact GMR. However, for Beyonce, you might have to call ASCAP, BMI or even both. Because while PROs have searchable databases on their respective websites, they also include giant disclaimers stating the information may not be accurate, warning the PRO “makes no representations and/or warranties with respect to the accuracy or completeness of the information found within the search results.”
Without any transparency into who owns what, most venues are forced to pay thousands of dollars in licenses from all four PROs or risk potential copyright infringement. The confusion, the costs, and the potential liability have left many venues asking if it even makes sense to play music. Because while it’s an important element for many venues that helps draw crowds and set the mood, the complexity and potential liabilities far outweigh the risks.
This hurts venues as well as artists and songwriters, and impacts everyone’s ability to enjoy music in the community. Without transparency in music licensing, the entire music ecosystem suffers.
Luckily, there is a proposed piece of legislation that could address this threat. The Transparency in Music Licensing Ownership Act, introduced by Rep. Jim Sensenbrenner (R-WI) with support on both sides of the aisle, would make our music licensing system more open and accessible. The bill, also known as “the Database Bill,” would create a free public database where music stakeholders from across the industry can access authoritative, fully searchable, and up-to-date records of music ownership and licensing information.
For more information on music licensing, please visit our Coalition partners’ websites. More information is available from WineAmerica, The Brewers Association, and The National Restaurants Association.
