The Basics of Music Licensing in Digital Media - Videos, Podcasts, Commercials, Downloads, Fair Use - What Questions Should You Be Asking?
Broadcasters need to be aware that ASCAP, BMI and SESAC (the "performing rights organizations" or PROs) don't cover them for all uses of music - especially uses that may be made on station websites. Offering downloads, podcasts, and streaming video featuring music all require specific permission from music rights holders. And, as we wrote just last week, incorporating music into recorded commercials also requires specific permission from rights holders - not just your routine payment to the PROs. As music usually has two different classes of rights holders - those that hold the rights to the musical composition (the lyrics and music in the song, usually held by a publishing company), and the rights to the "sound recording" or "master recording" (usually held by the record companies), knowing who to ask for what rights can sometimes be complicated. To help explain some of the basic issues of where to go for what rights, Davis Wright Tremaine has put together a Guide to the Basics of Music Licensing, available here.
The Guide also addresses some of the controversial issues in music licensing, and the question of "fair use", a concept often cited but also often misunderstood. So check out ourGuide for a basic introduction to the law governing music rights issues.
I am a restaurant owner and regularly have live bands playing music from non-digital sources. We also have DJ's who play originally mixed digital music. Are we subject to the licensing rules from companies like BMI
Yes, a restaurant or bar that features live music or DJs to entertain your customers will need licenses from the performing rights organizations to cover the public performance of the underlying musical works (with the limited exception of a case where the bands are performing all their own songs and agree to waive any public performance rights - especially unlikely with DJs). Only very small retailers using only home audio equipment, essentially to entertain their own employees, are exempt from public performance royalties
I wonder how many bars/venues (percentage wise) where there is live music playing/DJing have the proper licenses from the licensing companies (PROs).
You would be surprised at how many bars do have PRO licenses. The PROs do a good job of policing venues, so most know (or find out) that they have to comply.