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As an event planner, who will constantly use all types of music as part of your events, you need to be aware of music licensing laws, of your compliance obligations under those laws and the rights of musicians to payment for the use of their music. Music is a constant presence in our lives today. Nearly everywhere we go-- to the mall, the grocery store, in our cars, our homes, at the movies, on the television, to events, in elevators, and sometimes in our offices, some type of music is being played. It is often such a constant presence that we do not even pay attention to it most of the time. Because music is everywhere, we may assume that it belongs to everyone.
Your Meetings and Events Are Alive, with the Sound of Music
Music sets the mood and helps emphasize a corporation's message at company events such as management conferences, sales meetings, training seminars, and gala banquets. Imagine a company picnic, holiday celebration, or retirement party without music. Imagine trying to motivate employees at a meeting or seminar without the benefit of some hard-driving music to set the tone. Imagine trying to hold a gala or a large event without music to dance to or to entertain the attendees. Music will be a central part of many, if not all of your events, and there are certain costs and obligations involved.
Here is an excerpt from a press release sent out to meeting and event planners, dated February 25, 2003, distributed by Broadcast Music Inc. (BMI) from Nashville, TN, “Music Adds Excitement To Meetings And Trade Shows, But Don’t Forget To Pay The Songwriters.”
Pssssst. Wanna know the secret ingredient of lively meetings and trade shows? It’s music! Music can bring vitality to any gathering. When properly used, music can focus attention, attract customers, and increase the energy level at any meeting, trade show, convention or exposition.
“There is so much clutter between the dot-coms and carmakers and computer makers that you need a way to connect to people. One of the ways you can do that is through music.”*
Rob Schwartz, creative director, Nissan Motor Co. account, TBWA/Chiat/Day
The power of music in selling a product or service has been recognized by national advertisers for many years. It’s difficult to watch television or listen to radio for more than a few minutes today without hearing Shania Twain singing for Revlon, Faith Hill crooning for Pepsi, David Bowie and the Rolling Stones backing Microsoft, Sheryl Crow touting Oldsmobile, or Alan Jackson pushing Ford trucks. Advertisers pay five or six figures to use even little-known songs, and they are willing to pay even more for a signature song by a superstar.
While using music in exhibits and conventions isn’t free, it’s inexpensive in comparison to what advertisers pay for songs in national TV and radio commercials. For example, BMI can grant a trade show organizer legal access for each exhibitor to perform 4.5 million live or recorded songs from approximately 300,000 copyright owners at a cost of just 5 cents per show attendee. That’s just $500 for a show attended by 10,000 persons. In the case of a trade show or convention where live or recorded music is performed on the exhibit floor, the number of attendees equals the number of persons registered at the show or convention. BMI’s minimum fee is $110 for the year 2003. The fee is the same whether you play one song or 100 songs.
“Great songs are very precious when you come across them. When you can emotionally connect an artist’s ability with what the lyrics are trying to convey, an audience really feels that. It’s a magic combination.”*
Randy Scruggs – songwriter, artist, musician, producer
The organizers or presenters of a meeting, convention, or trade show are responsible for licensing all music used at their event. At the request of trade show organizers, BMI recently expanded its licensing agreement so that management companies may cover fees for their clients. “Having a management company handle music licensing will expedite administration for many organizations,” said Tom Annastas, BMI Vice President, General Licensing. “We’re happy we can accommodate them.”
U.S. Copyright Law recognizes musical compositions as intellectual property, much the same as books, computer software, movies, poetry and television programs. Songs cannot be used in public without the permission of the copyright owner. The Copyright Act defines as “public” any meeting “where a substantial number of persons outside a normal circle of a family and its social acquaintances is gathered.” Because the expense and time required to negotiate with multiple copyright owners would be overwhelming for a typical business playing popular music, most songwriters select a performing rights society (PRO) to represent him or her. The United States has three PROs – BMI, ASCAP, and SESAC – each representing different songs, composers and music publishers.
Most of the writers of hit songs are not the same as the stars who sing them. While a few songwriters become recording artists, most are unknown, highly-creative people who earn modest incomes. According to BMI, the average songwriter earns less than $5,000 annually from the public performance of his/her songs. “The revenue from businesses using music to enhance their profit and image is an important part of a songwriter’s income,” said Annastas. BMI is a non-profit-making organization, and all of the money it collects beyond administrative costs is passed on to the copyright owners. Annastas said BMI currently returns more than 82 cents of each dollar collected to the songwriters. “We operate efficiently so that our business customers can more easily afford the music, and songwriters receive more compensation for their work,” said Annastas. “Songwriters give American business one of its best bargains.”
* Rob Schwartz and Mark Hosler quotes are 1999 copyrights of the Orlando Sun-Sentinel. Quotes by Randy Scruggs and Willie Nelson are 1999 copyrights of American Songwriter magazine. All quotes used with permission. "Courtesy of BMI"
Imagine the following setting at an event that you have planned. The opening session of your event welcomes the crowd with the band playing “Welcome to the Jungle”, a Guns N‘ Roses hit, as Kenny G. jazz tunes frame the background tone during breaks. Your guests love it, so it is a success. Now let's look at this scenario from a copyright perspective and open the curtains on the issue. Unless you, as the planner, have secured a minimum of two different licenses to perform the music, whether live or mechanical, you are infringing on copyright law. And, you could be subject to legal liability that includes paying fines and damages.
Is this fair? The law does not look at issues from a point of “fairness,” but from a position of liability. In this case, you may be guilty of vicarious liability. The George Washington University defines vicarious liability as a charge, “…imposed on persons other than the person who performed the wrongful act.” This includes the person or entity who played the music, read the book passage, sang the song, used the software, displayed the picture, and so on.
For some who play without paying, ignorance is to blame. One Massachusetts-based planner told Meetings and Conventions Magazine (M&C) that, when organizing his first convention, he gave absolutely no thought to music licensing. "It simply did not occur to me. I was horrified when I learned that my show was not properly licensed." In the word of the American Society of Composers Authors & Publishers (ASCAP), “Music is a vital part of the total service businesses offer to customers. ASCAP's licensees recognize that using music benefits their businesses because music, like other amenities or products, pays off in heightened customer satisfaction, increased profits, and improved employee morale and productivity.”
The music licensing issue has always been a consideration for many industries, including major television networks, local television and, radio stations, cable and satellite networks and systems, public broadcasters, internet web sites, colleges and universities, night clubs, taverns and restaurants, background music services, fitness and health clubs, private clubs, concert presenters, dance halls, shopping centers and malls, theme and amusement parks, airlines, skating rinks, and retail stores. It is now a part of the general hospitality sector because of organizations such as the American Society of Composers Authors & Publishers (ASCAP), Broadcast Music Inc. (BMI), and SESAC (only the acronym is used now, but the initials had stood for the Society of European Songwriters, Authors and Composers). Their intention is to license live and mechanical music that is used for meetings, conventions, trade shows, and expositions.
In the past, music licensing was a private issue between producers, building managers, hoteliers, and the licensing agencies. Now these licensing agencies, starting in the late 1980’s, have decided to enforce their contracts through the end user. Who is the end user? The audience. Who represents the audience? The person, association, corporation, or organization that causes the music to be played. One may think the “band” causes the music to be played. Although musically correct, legally, the “band” is only playing because of the entity that has asked or paid them to play. So, it is the contracting entity that constitutes the legal user or the infringer. The law was written with the burden of compliance on the larger organization to aid enforcement. There could be many “fly-by-night” musicians playing unlicensed music to smaller audiences, but corporations, associations, and event-planning entities target larger markets and broadly advertise and market their events, making them easier to locate. They also tend to have a physical address, are listed in their local phone and business directories, and are on the Internet.
The bottom line is if you use music at your meeting, convention, or events, you have financial and legal obligations to reimburse the composers, authors, and publishers through their licensing agencies. If you do not volunteer the reimbursement for the right to use that music, then you are subject to criminal penalties under the copyright laws in the United States. This whole area of copyright is very important with respect to meetings, conventions, and events because it pertains not only to music, but also to artwork, logos, images, and costume characters that are often used or represented.
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Industry News: Top Entertainment Acts Can Hook Big 'Whales' at Casinos
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featured artist: Mark Chesnutt
 Mark
Sonder, CSEP is the Chief Entertainment Officer of Mark Sonder
Productions, an award-winning leading national entertainment agency designing
headline talent and production services for facilities,
corporations and associations. In addition, Sonder sits on
the faculty of the University
of Nevada at Las Vegas (UNLV), The George Washington University, Stratford
University, and Northern Virginia Community College. Event
Entertainment and Production is the book published by
Wiley authored by Sonder.
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