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Are You Sure About Paying That Performing Rights License?

May 2, 2013 by Guy Lewis

music in retail

How sure your monopolistic collection society is telling you the full story about your rights?

” ‘Rogue’ groups with links to the Ukrainian government collect music royalties, falsely claiming they are authorised to do so”

This quote is from a recent report by the US Trade Representative called the USTR’s annual 2013 Special 301 Special Report which outlines global findings on how countries around the world are protecting US patents, copyrights and other forms of intellectual property rights (IPR).

(the report has now been removed but may become available at a later date so search here to find it or other 301 reports for different years).

Although certainly not in the same degree of misrepresentation as the claim above, many national performing and composition rights societies state you need to pay them to play music but what they don’t ever tell you, and what they really should state is that you need to pay them for using music that they represent.

So music and musicians that they don’t have any legal representation for (so the musicians / copyright owners haven’t signed a contract with them to collect music royalties on their behalf) does not need any of their expensive licenses to be paid.

Of course in this case you need to deal with the musician directly or seek better deals with royalty free libraries like us here at Melody Pods.

Filed Under: Country Legals Tagged With: China, collection societies., copyright, IPR, Ukraine

Complex License Fee Calculations For US Music For Business

July 25, 2012 by Guy Lewis

The USA is quite unique in that musicians have a choice of collection agencies. This provides a better solution for artist’s because since there is a choice this suggests the fees for signup and efficiency of operations In collecting the music royalties should be better than other countries were effectively there is a monopoly of one collection agency.

However for businesses this means more complication in that they may be playing music from all the collection agencies and so need a license from up to three collection agencies at any time. Added to that there are regular stories of heavy handed visits, pestering phone calls and letters threatening legal action, all of which is obviously unpleasant for any business to receive.

Not all the US agencies subscribe to the same assertive pressure on businesses however since they represent named artists and copyright holders they do all have the right to collect royalties for use of their client’s music in business environments. How they calculate this can be at times very complicated. For example at the time of writing this article, ASCAP publish the following method to explain how they calculate how much you as a business should be charged for using their client’s music:

“Use Weight x Licensee Weight x ‘Follow The Dollar Factor’ x Time Of Day Weight x General Licensing Allocation”



added to and where applicable…

“Radio Feature Premium Credits”



plus where applicable…

“TV Premium Credits”



The latter is only used for where TV shows are being shown in your location.

Whilst it might be tempting to try to match the way ASCAP and others calculate a license fee based on and exclusively to, the physical size of your business, Melody Pods wants to make things much simpler. We license our music per device. So whatever the size of your business location, the subscription fee is simply the same. You are playing the same music in a small restaurant as you would in a large warehouse after all.

And of course it doesnt matter to use when you use our music, so we would never dare to charge you more for using our music in the evening as opposed to during the day for example.

Additionally, if you roam in your business, you take the right to use our music to anywhere you do your business.

Calculating these complex costs, and then monitoring and collecting these fees based on the usage simply means business are paying a lot of money to a society for administration knowing full well that a large part of the fee never gets back to the artists concerned.

Melody Pods provide a simpler way to license music that doesn’t require many foot soldiers to walk the streets checking usage, and offices of administrators billing and distributing licenses. We automate all that so that our costs, and the price to you becomes sensible and sustainable for businesses and artists.

Hence Melody Pods provides a simpler, easier and cheaper way to overcome these complications; a single source of professional music at a great price per month. So no need to pay a full annual fee suddenly hitting a business’ cash flow. Our service also provides invoices and license documents that can be shown to any pestering royalty collection agency. You should expect you will be pestered but after a while it will sink in that you do have a fully legal supply of music, you are paying the royalties due to the artists directly to Melody Pods and that if you only use our music collections you are not using any other music they may have the contract to collect performing royalties for.

Melody Pods. Simple, affordable good music.

Filed Under: Country Legals

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