Does every performance of copyrighted music in a municipality require a license?
March 03, 2008Q: Does every performance of copyrighted music in a municipality require a license?
A: Not every performance requires a license, according to attorney William Grothe, president of MPL Consultants, who has twenty years of experience at the largest performance rights organization in the country. He says making the distinction between performances that require a license and those that do not requires an analysis of a number of facts.
These include:
• Where the performance occurs
• The purpose of the performance
• The source of the copyrighted music
• The number of people listening
• The composition of the group listening
• Whether there is a commercial advantage to the performance (is anyone paid, are tickets sold to hear the music, and, if so, what is done with the proceeds?)
Are there exemptions in the Copyright Law that municipalities can take advantage of? The simple answer is “yes,” according to Grothe. The difficulty is that the exemptions that may apply have a number of variables that must be analyzed, such as the nature of the event at which the music is performed, the frequency of the event, whether anyone paid for the performance, whether tickets were sold, and what was done with the proceeds of ticket sales.
To what extent does a nonprofit status affect the need for a music license? There is no blanket exemption for nonprofit organizations, Grothe says. Such an exemption existed until 1978, but at that time “nonprofit” status became a variable in a number of exemptions, along with numerous other variables, all of which must be met before a specific exemption applies. So, for example, colleges, universities and symphony orchestras, which typically enjoy a tax-exempt, nonprofit status, nonetheless are required to obtain music licenses. These licenses are the responsibility of the specific organization, however, and not the municipality.
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