{"id":6869,"date":"2016-05-11T10:39:16","date_gmt":"2016-05-11T16:39:16","guid":{"rendered":"http:\/\/www.rockoncolorado.com\/roc-wp\/?p=6869"},"modified":"2016-05-06T14:48:04","modified_gmt":"2016-05-06T20:48:04","slug":"understanding-p-r-o-s-small-business","status":"publish","type":"post","link":"https:\/\/www.rockoncolorado.com\/roc-wp\/understanding-p-r-o-s-small-business\/","title":{"rendered":"Understanding P.R.O.’s for Small Business"},"content":{"rendered":"
\"We<\/a>

We got this fun graphic from www.indie-music.com<\/p><\/div>\n

So you have a small business, maybe a restaurant or a bar, and you decide it would be fun (and maybe profitable) to have a musician come in and play for a few hours on Friday and Saturday night. \u00a0He\/she comes in and plays familiar old tunes for a few hours, you pay them $100, plus they make some tips and everyone\u2019s happy. \u00a0It\u2019s fine and dandy for a few months and then you start getting letters, emails, or phone calls from an organization called BMI demanding that you pay them thousands of dollars for some kind license or something. \u00a0You\u2019ve never heard of it before, so you ignore it until one day when they hit you with a real actual letter of intent to sue. \u00a0You settle with BMI and tell the musicians that you can\u2019t afford to use them anymore. \u00a0It seems too quiet, so you start playing CDs over the PA, maybe even hire a DJ. \u00a0Then you get contacted by ASCAP wanting essentially the same the same thing as BMI. \u00a0It\u2019s confusing, Who are these people? \u00a0How many of them are out there? And why do you have to pay them at all?<\/span><\/p>\n

Here\u2019s what they are:<\/b><\/p>\n

Performing Rights Organizations. \u00a0There are 3 of them: ASCAP, BMI, and SESAC. \u00a0What they do is collect licensing fees on behalf of songwriters\/musicians\/publishers (or whoever owns the copyrights to the songs) and then they use that money to pay those copyright owners. \u00a0So when a musician (any musician) plays an Elvis song in public, Elvis\u2019 estate is entitled to a small payment. This applies to recordings as well. Each songwriter signs up with one of these PRO\u2019s to handle the collection of these fees\/payments, because, obviously, even Kanye West can\u2019t keep track of every time one of his songs gets played somewhere. \u00a0So these PRO\u2019s sell licenses to businesses which allow those businesses to play music from the organization\u2019s catalog. Then, the PRO uses that money to pay the artists.<\/span><\/p>\n

What if I have the musician only play originals that he\/she wrote?<\/b><\/p>\n

You still have to pay. \u00a0The musician should be a member of one of the PROs and if he\/she plays his\/her music in public he\/she is entitled to be paid for it (in addition to what you may be paying them for the live show). \u00a0Sure, some musicians don\u2019t know that, or care, but all it takes is for a musician to play one song they didn\u2019t write or one of them to report their playlist to a PRO and you\u2019re screwed.<\/span><\/p>\n

What if I\u2019m a retail store and just play the radio for background music?<\/b><\/p>\n

It\u2019s still a public performance of the music in question and you are still using that music in your business to improve sales or the experience of being in your business. \u00a0You have to pay. \u00a0Services like Muzak usually include licensing in with the fees you pay them.<\/span><\/p>\n

Do I have to pay all 3 of them?<\/b><\/p>\n

Yes. \u00a0Each PRO has a different catalog of artists and songs. \u00a0It\u2019s really hard to keep track of which songs are in which catalog and play music from only one of them.<\/span><\/p>\n

What about a jukebox?<\/b><\/p>\n

It depends on if you are paying a service to provide the jukebox music or if you own the box and put the music you choose into it. \u00a0If you pay for a service, you are probably paying the licensing fees as well. \u00a0If you load it up yourself, you probably need to get those licenses. \u00a0Hopefully, the jukebox brings in enough revenue to pay for those fees.<\/span><\/p>\n

If this doesn\u2019t answer your questions, and especially if you are being sued over this kind of stuff, it\u2019s a good idea to talk to an experienced Entertainment Attorney (not just your usual attorney). \u00a0You need one with education and experience in the Entertainment field.<\/span><\/p>\n

If you need more info here are links to the 3 US PRO\u2019s:<\/span><\/p>\n

ASCAP: <\/span>http:\/\/www.ascap.com<\/span><\/a><\/p>\n

BMI: <\/span>http:\/\/www.bmi.com<\/span><\/a><\/p>\n

SESAC: <\/span>https:\/\/www.sesac.com<\/span><\/a>
\nOther countries have different PRO\u2019s, so if you aren\u2019t in the USA, you need to look up the PRO(s) that service your country.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

So you have a small business, maybe a restaurant or a bar, and you decide it would be fun (and maybe profitable) to have a musician come in and play for a few hours on Friday and Saturday night. \u00a0He\/she comes in and plays familiar old tunes for a few hours, you pay them $100,
+ Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":6871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"ngg_post_thumbnail":0,"footnotes":""},"categories":[3],"tags":[817,818,816,819,820],"class_list":["post-6869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-music-biz","tag-ascap","tag-bmi","tag-pro","tag-sesac","tag-small-biz"],"yoast_head":"\nUnderstanding P.R.O.'s for Small Business - RockOnColorado.com<\/title>\n<meta name=\"description\" content=\"Understanding P.R.O.'s for Small Business - The Music Biz - RockOnColorado.com\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rockoncolorado.com\/roc-wp\/understanding-p-r-o-s-small-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understanding P.R.O.'s for Small Business - 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