Q & A
Each month, MusicBizAdvice.com answers your questions about the music industry.
License Requirements for Music in Non-profit Venues
Q.
I co-produce
a small non-profit coffeehouse that is hosted by a church. We host one show
each month of acoustic folk music, generally singer/songwriters performing
their own music - but some of them do play the occasional 'cover'. We are a
direct adjunct of the church, and our account is part of the Church account,
so we fall under their 501.C3 umbrella. We have a recommended donation for
our shows, and after paying a facility use fee to the church, all or our
proceeds are donated to local charities.
I have never considered whether we are in need of any licensing from any of
the agencies, since we derive no profit from our performances. I was
recently contacted by a very aggressive representative of [a performing
rights organization]. Is there a resource where we can find out what our
actual responsibilities are without hiring an attorney, or just accepting
the judgment of some licensing company?—P.
A. As a business owner, I understand your cost concerns.
Unfortunately, being a 501.C3 doesn’t exclude a business from paying license
fees for music performed in the venue…just as 501C3’s also aren’t exempt
from paying for services like electricity, phone, rent, printing, and coffee
supplies. Music is a service, too, like all the other items mentioned above.
As business owners we have to “just accept the judgment of some” electric
company, gas company, and telephone company and pay them. Music licensing is
no different. (And believe me, I usually have a lot bigger bone to pick with
the telephone company!)
Venues playing music are subject to a blanket license. Depending on the
performing rights organization, the blanket license is usually paid yearly
and is based either on the number of seats in the venue or gross receipts of
the venue. Some performing rights organizations do offer sliding scales for
non-profits, and there are certain exemptions for churches that may help
you. We recommend contacting ASCAP, BMI, and SESAC directly for their
policies.
Meanwhile, to help sort out the confusion, without mentioning names we
called BMI, one of the performing rights organizations that did not contact
you. Jerry Bailey, Director of Media Relations at BMI explains:
“There is little special consideration for non-profits under copyright law.
Most non-profits are required to compensate songwriters for public
performances of music.
“Copyright law does provide a few exemptions which may benefit churches. For
example, music ‘of a religious nature’ may be used without the permission of
copyright owners ‘in the course of services at a place of worship or other
religious assembly.’ Most performances of music in coffee shops, regardless
of venue ownership, do not qualify as worship services.
“In the case of music performances (recorded or live) at a church-owned
coffee shop which donates all monies after expenses to a church, such music
performances may be exempt from music licensing if the performance is not
broadcast, and there is no admission charge, or there is no ‘payment of any
fee or other compensation for the performance to any of its performers,
promoters, or organizers…’ In other words, if anyone involved with the
performance is paid (including ‘love offerings’ tips or passing the hat),
then the copyright owners have a legal right to compensation, also.”
Thanks to Jerry for clarification and a fast response, as well as to Darcie
Wicknick for additional research assistance.
Incidentally, you may be wondering why the copyright law allows churches to
use music ‘of a religious nature’ during religious services without
copyright owners’ permission, yet the exemption doesn’t apply to secular
music. The law was designed this way so that copyright owners aren’t put
into a situation where their music can be interpreted as an endorsement of
religious beliefs that may be in direct conflict with their own.
Hope that helps!
Randi Reed
Editor-in-Chief / Founder
MusicBizAdvice.com
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