From the AH&LA Information Center: Music in Hotels
Q: My hotel recently received a letter from an organization called Global Music Rights saying we needed to buy a license from them to play music in our hotel lobby and restaurant. We already have a license from BMI, ASCAP and SESAC – do we really need one from a 4th organization as well?
A: Global Music Rights (GMR) is a relatively new company in the music licensing industry, founded in 2013 by longtime entertainment executive Irving Azoff. According to their website, they own rights to songs by many popular artists.
GMR seems to work similarly to other music licensing companies. They enter into agreements with copyright holders, obtain the rights to license the copyrighted music, sell these licenses to the businesses wishing to pay such music, and in turn, pay to copyright holder. The most common license is a blanket one which allows an individual or business to re-broadcast thousands of songs in licensing company's database.
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Q: When do I need a license to play music or show something on TV in my hotel lobby? What about playing music in the fitness room?
A: If you're playing music is a public space, more likely than not, you'll need a license. There are exceptions if your business is simply playing a radio broadcast, but those exceptions are based on the square footage of the space it's being broadcast in and there are limitations on how many speakers can be used to broadcast. This is covered by Title 17, Section 110(5) of the U.S. Copyright Act. This section also includes similar guidelines for Television broadcasts.
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Q: What if my business is playing Pandora? Is that legally okay?
A: The previously mentioned 110(5) exemption applies only to broadcasts subject to FCC licensing and regulations and therefore would not apply to "internet radio". And Pandora's Terms of Service specify "Use of the services in a business establishment requires a special license to a separate service." However, Pandora does offer Pandora Business Music Solution; likewise iHeart Radio and Spotify offer their own business solutions as well.
Interestingly, it appears as though both Pandora and iHeart Radio have agreements with Mood Media, which is the company that purchased longtime background music provider Muzak in 2011. Generally speaking a contract with a background music provider, such as Mood Media/Muzak, will usually include any needed music licensing with the necessary organizations – but it doesn't hurt to inquire and make sure your licenses are covered if you're contracted with them.
If you've received a letter threatening legal action from of the music licensing companies, it's best to seek immediate legal advice.
While the AHLA Information Center cannot provide legal advice, we are here to help provide additional information on this or any other topic. Please contact Kyle Howton at (713) 743-6797, or via email at informationcenter@ahla.com.
