Avoiding Music Licensing Problems

Over the years a number of my clients have attempted to avoid having to purchase music performance licenses by purchasing or leasing customized, pre-licensed background music tapes from companies like Muzak or AEI. However, this did not provide them with a license to play the frequent bits of music emanating from their in-store TV sets. The lack of such licenses is a favorite window of opportunity for performing rights licensing organizations such as ASCAP, BMI and SESAC, each of which enforces a different collection of copyrights for particular works of music. In order to be safe and not have to screen each piece of music issuing from their TV's, these clients would be forced to buy licenses from each licensing organization and pay license fees based on a number of factors such as the size of each of their stores and whether live music is to be performed in one or more of them. These fees often run into hundreds and sometimes thousands of dollars.

Now there is a way to get one very low cost license from all three of these organizations. It seems that the national trade association for tavern owners (the National Licensed Beverage Association) recently negotiated a group license agreement covering most of its members, and costing $30 per participating store per year. You automatically become a member of NLBA by joining your state licensed beverage association. Here in Washington we have the Washington State Licensed Beverage Association. Its membership fee is $200.00 per store per year. Restaurants and lounges with liquor licenses can join these associations. Thus in Washington, your total state and national beverage association and music license fees could be $230/store/year.

This version of the group license does not cover certain stores, such as those larger than 3,500 square feet which have more than 3 TV's or TV's with screens larger than 55 inches. Other restrictions apply. For more details contact the NLBA at 4214 King Street West, Alexandria, VA 22302-1507, 703-671-7575, e-mail nlba@msn.com, the WSLBA at 324 Custer Way SW, Tumwater, WA 98501, 800-648-8881, or the licensed beverage association in your state.