Impact of Copyright Laws on Local Businesses: A Deep Dive

Behind the Scenes of Music Copyright Compliance

In Bowling Green, Kentucky, there has been a growing concern about how copyright laws affect local businesses, particularly amongst those which utilize music within their premises. As per copyright lawyer Laura Hagan, understanding the legalities of what can and can’t be played often circles around whether the businesses are paying for the patrons to enjoy the music.

“It’s an unforeseen expense that business owners often don’t account for while developing their business plans,” says Hagan. It was recently announced that a local business was visited by an agent from a performing rights organization who came to investigate their music copyright compliance in an incident similar to various others that have taken place across the country.

The Role of Watchers

These organizations, similar to SESAC or BMI, frequently dispatch watchers who act akin to secret shoppers. The watchers visit businesses, listen to the background music being played and check if the business holds a license agreement for the specific tracks. “If they do not, then they’ll typically send them a notice that they need to purchase an agreement from them,” adds Hagan.

Facing the Music: Dealing with Performance Rights Organizations

Global non-profit ASCAP (American Society of Composers, Authors, and Publishers), which is one of the largest performing rights organizations, represents the performance rights of dozens of millions of copyrighted songs and compositions. But they are far from being the only one. Similar to ASCAP, BMI, SESAC, and Sound Exchange also require purchase licenses for their music catalogs before they can be performed for customers.

Confusion arises as purchasing a license from one of these organizations does not cover all music. Different organizations have different artists in their catalogs. Fines for playing unlicensed music can lead to hefty penalties, which can jeopardize the operations of small businesses.

Exceptions and Safeguards

Certain exceptions allow certain businesses to play music from radio broadcasts, however, such exceptions are limited. Variables such as the size of the venue, the number of customers the business has, and the number of speakers that are broadcasting can all play a role in whether a license would be required.

Most experts suggest the safest way to protect a business from hefty fines is to stick with music that falls in the public domain or to avoid playing music altogether.

Navigating Through Copyright Law

For more information on understanding copyright law, business owners can access resources available on the U.S. Government’s copyright website.