WHY MUSIC LICENSES ARE NEEDED
United States copyright law allows a person buying a CD, MP3 or similar music delivery device to enjoy a non-public performance of that material (at home or in a vehicle). For public, “live” performances of someone else’s copyrighted music — including radio, TV, bands or Karaoke — non-exempt entities have a legal obligation to obtain and/or pay for permission.
Dozens of Ohio businesses have been sued and made to pay tens of thousands of dollars for playing music without proper licensing.
Broadcast Music, Inc. has sued hundreds of establishments across the country, including bars and restaurants in southwest Ohio, for playing BMI-licensed songs without a proper license. A Hamilton JournalNews/Middletown Journal search of civil court records shows that BMI Inc. — one of three main protective-rights organizations — usually settles out of court or gets a summary judgement and, in either case, collects thousands of dollars per violated song.
The lawsuits are part of a concerted effort by such organizations to enforce copyrights and could serve as a warning to other businesses illegally playing licensed music.
“The entertainment industry is in a frenzy not knowing how to protect – put fences around — their copyrights in the digital age, because there’s nothing really that can preclude a perfect digital copy,” said University of Dayton law professor Tracy Reilly, who teaches courses about real property and intellectual property.
In Hamilton, Jen’s Bar and Grill lost a summary judgement to pay $68,000 for 17 violations after nearly two years of letters from BMI asking the bar to purchase blanket licensing fees.
The Cobblestone Tavern in Fairfield was ordered to pay $25,000 for five April 28 violations after BMI claimed it sent 33 letters about licensing in three years. Court documents show the bar, if licensed, would have paid $8,176.95 for that three-year period and $2,065.50 annually.
Many businesses that play music or TV — not just bars and restaurants — could be subject to similar lawsuits if they don’t meet the legal exceptions for square footage or have music systems that include blanket licenses. BMI, the American Society of Composers, Authors and Publishers (ASCAP) and the Society of European Stage Authors and Composers (SESAC) are the biggest entities that license music and collect royalties for song rights-holders.
The Pub at The Greene in Beavercreek paid more than $30,000 to BMI after a Southern Ohio United States District Court civil case for playing four BMI-licensed songs such as Van Morrison’s “Brown Eyed Girl” and Johnny Cash’s “I Walk The Line.”
“How many times do you go into a restaurant and hear them playing a radio station, for example,” said attorney David Rickert, who represented The Pub but could not speak directly about the case due to a confidentiality clause. “Technically, you need a license for that. I think it’s something people just aren’t aware of. Now they’re starting to crack down a little bit on it.”
Attorneys and a spokesman from BMI would not comment about either the pending or settled lawsuits, giving only this statement:
“BMI works with business owners using music by our represented songwriters and music publishers. The company’s goal is to educate business owners in order to broaden awareness of copyright, music licensing and songwriter music compensation rights. BMI only takes legal action as a last resort, following notifications and considerable periods of time, when a business refuses to purchase a license for the music being used.”
Documents show BMI asked Jen’s Bar and Grille to buy a music license as early as July 2010 and each month thereafter until April 2011 and several more letters until a May 14 letter sought $2,816.24 for two year’s worth of back licensing fees. A May 16 letter indicated the case was sent to BMI’s attorneys.
Jennifer Hill, listed in the lawsuit of Jen’s Bar and Grill, did not return multiple messages seeking comment.
About the Author