Are You Legal? The Facts About Using Radio, TV & Consumer Music CDs

Consumer Music CDs - Not Without a License

When you buy a music CD from a retail store, you get a license for personal use only. You can play this CD for yourself and friends for noncommercial entertainment. When you use that CD as part of your business though, you are performing that music for the general public. Performance royalties must be paid. You will need to contact each of the performance rights organizations (PRO) representing the composers and music publishers on the CD. Each PRO will grant you a license for performance rights. These fees are collected once a year, and are based on certain criteria ranging from a few hundred to several thousand dollars per year.

Should you want to record your own message with the music, you will need to obtain written permission from the copyright holder of the sound recording too. This is usually the recording label. This license is known as a "Master Use" License. Failure to obtain the proper licenses can result in heavy fines.

Radio & Television - Not Without a License

Radio will broadcast music written by composers from all three performance rights organizations (ASCAP-BMI-SESAC). Therefore, you will need a license from all three to use radio or TV broadcasts as part of your business. For Music-On-Hold, the PROs usually provide a yearly blanket license covering all titles composed by their members. This fee is based on certain criteria and ranges from a few hundred to several thousand dollars per year.

How to License Music From Radio, TV or Consumer CDs

If you are using music broadcast over a Radio or TV station or on audio CD (or other format) for your business, you will need to enter into separate contracts with ASCAP, BMI and SESAC for performance rights. All three added together can cost between $500 and $30,000 (approx.) each year.

We include ALL the licenses you need in your purchase price. No additional fees are ever required.

For more information about using Radio, TV and Consumer Audio CDs for your business, along with cost effective alternatives such as our Music on Hold service, please download our FREE REPORT: Licensing Music On Hold for Your Business