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Music Licensing
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| Music played by South Dakota businesses
has long been a tough issue; many of us remember
more contentious times when agents from performance-rights
societies (such as ASCAP - American Society of Composer,
Authors and Publishers and BMI - Broadcast Music,
Inc.) would travel around the state deciding who
owed money for services used by retailers. We have
kindler, gentler times now… but we still get phone
calls from these companies. What's right and what's
wrong? |
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Q: Are small businesses exempted from the
requirement to pay music licensing fees?
A: Restaurants under 3,750 gross square feet
(not counting the parking lot) are exempt from
paying royalties on radio and television music
only. Restaurants over 3,750 gross square feet
may also be exempt if they play no more than four
televisions, each measuring up to 55 inches diagonally
(no more than one per room), with no more than
six speakers total, and with no more than four
speakers per room -or- if they play radios that
have no more than six speakers total, with no
more than four speakers per room. For restaurants
to be eligible for the exemption, they must not
charge a cover fee to see the television or listen
to the radio. Other retail businesses under 2,000
gross square feet (not counting the parking lot)
are exempt. Retailers over 2,000 gross square
feet (not counting the parking lot) will receive
the same equipment exemption as restaurant owners
(see above).
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Q: If I have the local radio station playing
over a speaker system in my business, am I required
to be licensed?
A: You may be, depending upon the number of
speakers in the system. Q: If I have a radio playing
behind my counter or in my private office, but
it is not aired over a speaker system, does that
require a license? A: A homestyle radio does not
require a license. However, playing CD's or tapes
or records over a homestyle system in your public
areas of the business is considered licensable
use (this old include retail store showroom floors,
and areas of your business accessible by the general
public).
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Q: My restaurant is under 3,750 gross square
feet. I play CDs in my establishment. Can I play
the CDs and claim the exemption due to the size
of the business?
A: No. Just because you paid for the CDs doesn't
mean you're entitled to play them publicly. The
exemption only covers restaurants which play radio
or television music only. You must either stop
playing the CDs or pay for the right to play them.
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Q: If I hire a band to play in my establishment,
doesn't the band pay all licensing fees?
A: The band may be required to pay a fee, but
this still does not change your legal obligation
to pay a fee. The law imposes an obligation to
pay on both the performer and the business who
allows the performance.
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Q: Where can I get more information on music
licensing?
A: Call ASCAP at 1-800-910-7347, BMI at 1-800-957-8451
and SESAC at 1-800-826-9996. Article courtesy
of the National Restaurant Association
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