ASCAP and BMI operate under federal consent decrees that prevent them from charging discriminatory fees for licenses. While an organization's fee schedules and methods of fee computation may differ, each treat like entities alike. BMI, SESAC, and ASCAP maintain standard fee schedules for different classes of businesses and organizations that set out the basis for fees and from which businesses can determine their cost of an annual license. These organizations have different rate schedules for various industries. For specific information, contact them at the addresses listed.

Failure to obtain a license to perform copyrighted music publicly is copyright infringement under the copyright law. The infringer is subject to a civil suit in federal court. Sanctions against an infringer can include an injunction and the copyright owner's actual damages, as well as the infringer's profits, or "statutory damages" of up to $30,000 for each copyrighted song performed without a license (up to $150,000 if the infringement is willful). The infringer can also be required to pay the copyright owners' legal fees. The law further provides for criminal sanctions against those who willfully infringe on a copyright for commercial advantage or private gain.

New technologies, pastimes, and merchandising techniques have been accompanied by the performance of music in nontraditional places such as malls, aerobic studios, restaurants and all types of retail establishments. Performance rights organizations have responded to this development by contacting more and more businesses that regularly use music in an effort to educate them to the rights of copyright holders and to assure that their members are paid for the playing of their copyrighted works.

It is true that, because of the difficulty of monitoring the millions of performances of copyrighted music taking place every day, royalties are not paid by every small and large business. But, given the changes in the commercial use of music, business owners should not be surprised if they are contacted and offered music licensing agreements by ASCAP, BMI, and SESAC representatives-either by mail, phone or in person.

Whether played as background or used to impart a special ambiance, music has become an essential part of many modern retail and service businesses. But the use of such music programming is almost never free. Below are important points regarding why businesses buy a license from a performing rights organization:.

1. The majority of music a business plays is protected by copyright law
2. Music copyright holders have the constitutionally created and federally protected right to demand royalties for public performances of their music, whether by live musicians, recordings, or broadcasts
3. The legal rights given to music copyright holders under the copyright law are substantially the same as those given to authors or creators of literary works, dramas, choreographic works, films, pictures, graphics, and sculptures
4. More than 85% of all fees collected by the two largest performing rights organizations are paid to composers and publishers as royalties for the performance of their copyrighted works

Anyone with questions about performing rights organizations, their license agreements, or rights and responsibilities under the United States Copyright Law should contact their attorney or the following organizations of the offices below:

BMI
10 Music Square East
Nashville, TN 37203
800.925.8451
www.bmi.com

SESAC
55 Music Square East
Nashville, TN 37203
800.826.9996
www.sesac.com

AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND PUBLISHERS
2675 Paces Ferry Road, SE, Suite 350
Atlanta, GA 30339
800.505.4052
www.ascap.com

U.S. COPYRIGHT OFFICE
202.707.3000
www.lcweb.loc.gov/copyright

Music is so common and widespread in our culture that frequently many of us take for granted the right we have (or think we have) to play it. Most people fail to realize that a legal license is required by law to play any copyrighted music.

RETAIL RADIO LLC
1401 El Camino Ave Suite 240
Sacramento, CA 95815
888.807.6683
www.retailradiousa.com