Having a BMI license for music is the first thing every retailer should do. Nobody wants to get bills sweeping down their doors with privacy and copyright penalties. As much as you know the importance of overhead music in your store, you must respect the rights of the artist and musicians who owns the music..
At present, the cost of running a brick and mortar store is getting higher day by day. The factors are many. The repercussions faced after the outbreak of COVID-19 influenced the supply chain of many products. In addition, the rapidly changing government policies are playing are causing much disturbance that results in creating pressure over retailers.
To combat these downsides, retailers are opting for smart ways. Well, it’s good to look for a technique that can speed up your business but it should be fair and legal.
When it comes to overhead music in stores, the outcomes are many. It can boost traffic, enhance the shooing time and make buyers stay in the store for longer. However, there are certain things one must learn about taking a BMI license for music to keep things legal. If you do not pay attention to the legalities you may have to face high charges. Back in 2011. a restaurant owner received a huge $30,450 BMI penalty for playing four unlicensed tracks on the premises.
Performing rights organizations (“PROs”) deals with the use of music commercially. If you get a letter from the organizations working under PROs you take it seriously. The renowned organizations are namely ASCAP, BMI, SESAC and Global Music Rights. These organizations can charge you with expensive fines up to $150,000. If you want to save yourself from the havoc better learn about the five crucial things listed below:
The first misconception is that many retailers think what charges they get from PROs are not so important. However, as per US law, if you are playing a track of any artist who is not allowing you or is not aware of your activities, you get the penalty to pay the fees. The PROs has to collect the penalty fees from the businesses and they transfer it to the songwriter or the artist.
Never assume that the organizations listed above are outdated and that their actions are not applicable today. The first organization was ASCAP and it was launched back in 1914. Coming second was SESAC, in 1930 and BMI in 1939. Among them, the latest is Global Music Rights. It has been operational since 2015. After every decade the terms and conditions are revised for better implications. All of these bodies work under U.S. law and are completely legal.
PROs are the legal bodies that have to ensure both parties are dealt with justice. Therefore, they tend to be more litigious. They listen to the concerns and stories of both two sides. Although they imply strict penalty fees but in case if you find it hard to pay they will surely come up with a solution. They are qualified to find a way out that can ease things down for you. However, it’s wise to pay for the products you are using instead of getting trapped in the penalty structures. Here is a case reported by ASCAP charging a bar with over $90,000 penalty fees for not paying $5000 for the products they were using without the legal permission.
You can not deny the fact that music plays a role in increasing sales in your store. Apart from this, it has many psychological benefits that set the mood. Whether you own a retail store or run a bakery, you know the brighter sides of playing overhead music, so not pay for it as well? The musicians and artists should get their fair share of the credit. They should earn for the gems of tracks they produce or write. With PRO fees, you give a sort of praise to the artist encouraging them to work more.
Therefore, it’s important for the business owners to respect the laws and pay the fair share of the PRO fees and avoid getting any lawsuits.
You can opt for Per Segment licenses as it can help you negotiate your PRO fees depending upon the usage your store needs. Until recently, it was difficult to track the live music performances through technology and this gave an edge to the store owners to apply for Per Segment licenses. It helped them lower the rates and get feasible PRO fees.
Receiving a penalty notice could be alarming for you. If you opt for run Google searches you might start getting nightmares. So, do not stress about it and simply contact the organization and settle down your fees. Remember that it’s a part of your business investments and that it will benefit you in the long run. By hiding from minimal PRO fees, you can put your entire business in a lot of trouble. So, think carefully and take the right decision.