Indeed, whether a restaurant is seeking to increase table turnover, retain patrons by fostering a soothing ambiance, or liven a festive gathering, music plays a crucial role. No resource has greater value when it comes to establishing a desired mood for a particular restaurant setting. Perhaps the most obvious examples are sports bars, where music from TVs highlighting action in the game provides a fitting soundtrack to the hustle and bustle of a lively crowd.

At the other extreme are steak houses and fine dining establishments. Here, the desired sonic mood is one that establishes a sense of calm and relaxation, one befitting a larger proportion of mature patrons. Falling between sports bars and steak houses is the neighborhood pub, which varies in nature and where the demographic is more mixed. Examples include college bars and restaurants, where indie pop or alternative music ratchets up the energized ambiance.

No matter the desired mood, numerous studies have established that music is central to creating the proper atmosphere — and driving profits. To cite a sampling:

• • A recent CNN article showed that people chewed food nearly a third faster when listening to high-volume, fast-tempo music, potentially increasing table turnover. Also according to CNN, a French study observed that as decibel levels increased, men not only consumed more drinks but also finished each drink in less time.
• • A study published by the Journal of Culinary Science & Technology determined that food tastes best to diners when 1) classical music is softly played, and 2) there’s the presence of subtle background “chatter.” The same study showed that the absence of music detracted significantly from the dining experience, with patrons describing something as innocuous as the “clink” of cutlery as unacceptably noisy. Music, of course, serves to mask such noise.
• • A Scottish study published by the Association for Consumer Research found that diners increased their expenditures by 23% when slow-tempo music was played. Most of the additional spending went toward the drink bill, which grew 51%. Because drinks are typically a high-margin item, the increase in profits was especially significant. Of course, it’s up to individual proprietors to determine whether profits are enhanced by fast table turns or by encouraging patrons to remain for long periods of time. Music can be a powerful tool in achieving either goal.

To facilitate such uses of music, Broadcast Music, Inc. (BMI), provides the necessary licensing to comply with copyright statutes for the use of more than 7.5 million musical works. Operating on a non-profit-making basis, BMI distributes approximately 84 cents of every dollar it collects to its roster of songwriters, composers and publishers. In essence, the organization serves as a “middleman” between restaurants and owners of intellectual property. “Organizations like BMI — performing rights organizations — are advocates of a system whereby people are compensated for their work,” says Casey Monahan, Director of the Texas Music Office, an adjunct to the Texas State government. “It’s extremely important, not only for restaurants but really for everybody in the country, to understand the value of, and the significance of, intellectual property.”

Originally published on Tuesday, December 17, 2013
3793 views at time of republishing

What types of music used in the public areas of a hotel always need a license?

• All live performances
• CDs, MP3s
• Streaming music from a website

In addition, radios in public areas must be licensed under any of the following conditions:

• If all the public areas combined contain more than six loudspeakers
• If there are more than four loudspeakers in any one public room or adjoining outdoor public space (like a patio)
• If there is any cover charge to enter the public area where the radio is played
• If the hotel uses music on their phone lines when callers are on hold

For TVs used in public areas, a license is needed under any of the following conditions:

• If the hotel uses more than four TVs in all the public areas combined
• If the hotel uses more than one TV in any one public room
• If any of the TVs used has a diagonal screen size greater than 55 inches
• If the TV uses more than six loudspeakers in all public areas combined
• If the TV uses more than four loudspeakers in any one public room or adjoining public outdoor space (like a patio)
• If there is any cover charge where the TV is being used

Fortunately, hotels don’t have to negotiate individual licenses with each songwriter, composer or publisher of the music they play. BMI grants permission, through one music license, to publicly play approximately half of all the music played in the U.S., with other performing rights organizations licensing the rest. The average annual BMI fee for a select-service hotel is $650. To cover your use of BMI music only, the fee structures are based on the type of music played:

• Live music only is based on entertainment expenses, with a minimum annual BMI fee of $225 for expenses less than $2,000.
• Recorded music only (CD’s, MP3s, streaming music from a website, etc., without audio-visual accompaniment such as TVs or DVDs) is based on the number of guest rooms, with a minimum annual BMI fee of $364 for up to 100 rooms.
• Live and recorded music together without audio-visual (such as TVs or DVDs) is based on entertainment expenses and the number of guest rooms, with a minimum annual BMI fee of $436 for up to 100 rooms. Live and recorded music with audio-visual and up to 100 rooms is $546.
• Radio and TV use that are licensable according to the criteria above are included in the tiered structures for recorded music, also based on the number of guest rooms. The minimum annual BMI fee for TV with up to 100 rooms is $546.

For hotels with more than 100 rooms, please refer to BMI’s hotel license at www.bmi.com/hotel and conveniently stay in compliance with copyright law to play any of the more than 8.5 million musical works that BMI represents.

Originally published on Tuesday, September 23, 2014
1866 views at time of republishing

How do the creators of the music you play fit into your business plan? They are small business people who earn their living from the product they provide just like any other suppliers, and the copyright law, which protects their product (music), was enacted to help them continue to provide it. That’s why businesses that play music need a license to do so under Federal Copyright Law.

What is a music license?

A music license provides copyright clearance to play music in a public setting, which under copyright law, is considered anything outside a normal circle of friends and family.

Why are there federal laws to protect songwriters and composers?

Very simply, so that they will continue to create music and the cycle of art and commerce will continue to grow. Songwriters help businesses and businesses help songwriters. Without compensation for songwriters, who don’t draw a regular paycheck for their work like other employees, the quality and quantity of music available for business and pleasure will quickly disappear, and, we will, eventually, have silence.

Who provides these licenses?

There are three performing rights organizations (PROs) in the U.S. that provide music licenses – Broadcast Music, Inc. (BMI), ASCAP and SESAC. Each represents a unique repertoire of music and grants blanket permission to play the copyrighted music they represent so that business owners don’t have to contact copyright owners directly, which saves time and money for both businesses and songwriters. Licenses with all three PROs provide businesses with copyright clearance to play virtually all of the music heard around the world every day.

For BMI, which operates on a non-profit-making basis, the process goes like this: once a business licenses and we receive their fee, we distribute all of the moneys received, less operating expenses, as royalties to our more than 600,000 affiliated songwriters, composers and publishers (copyright owners) based on radio, TV, cable, the Internet, concerts and logs provided by businesses that track and report the music they play. This performance data provides the most accurate snapshot of all of the music played publicly and the size of the audiences that hear it. This ensures that the songwriters, composers and publishers who do have public performances get paid accurately.

It is important to note here that many songwriters are not the artists who record their work and the payment they receive from the sale of these recordings is minimal compared to the artist’s share. This means that the fees that businesses pay on public performances are all that allow many songwriters to continue creating new music for all of us to enjoy. It is also important to note that the cost of a BMI music license for a hotel is typically less than $7 a day, which means that for the cost of a couple of drinks, all of your guests can be entertained.

Do I need a license to use radios and/or TVs?

The use of television in public areas of hotels often raises questions about copyright law and music licensing – even for broadcasts of sporting events. Some may wonder what a sports telecast has to do with music. An analysis of a typical game, however, reveals an abundance of copyrighted music throughout the broadcast. Music is everywhere, including in program openings, half-time programs, highlights, commercials, and breaks in the action. While television networks, local TV stations and cable networks secure public performance licenses for the music they use in their programs, those agreements do not authorize the re-transmission of such broadcasts to the public.

Public performances of radio and TV are specifically addressed in Title 17, Section 110(5)(B) of the U.S. copyright law which states that any food service or drinking establishment that is 3750 square feet or larger, or any other establishment, other than a food service or drinking establishment, that is 2000 square feet or larger, must secure public performance rights for TVs or radios if any of the following conditions apply:

For TV, if the business is using any of the following:

1. more than four TVs; or

2. more than one TV in any one room; or

3. if any of the TVs used has a diagonal screen size greater than 55 inches; or

4. if any audio portion of the audiovisual performance is communicated by means

• of more than six loudspeakers, or four loudspeakers in any one room or adjoining
• outdoor space; or

5. if there is any cover charge.

For radio, if the business is using any of the following:

1. more than six loudspeakers; or

2. more than four loudspeakers in any one room or adjoining outdoor space; or

3. if there is any cover charge; or

4. if the business is playing the radio (or any other type of music) through their phone line while customers wait on hold.

What happens if I use music without a license?

Penalties for copyright infringement are outlined in the federal copyright law and are not set forth by the performing rights organizations. The judge presiding over a copyright infringement case is given wide discretion in awarding statutory damages, which can be high — from $750 to $30,000 for each copyrighted song performed without a license, and up to $150,000 per work if the infringement is found to be willful.

How can I get a music license?

Most BMI music users apply for a license online. You can visit our website at www.bmi.com/licensing, read the answers to frequently asked questions, review the license for your business category, then click and follow the directions to become licensed to play the more than 8.5 million musical works that BMI represents.

Originally published on Thursday, March 20, 2014
2324 views at time of republishing