Law regarding on hold music
Should you wish to play a radio or some other form of
non-licensed music on hold, the following applies:
The Law
By statutory definition, since a corporation or other company is a place 'where
a substantial number of persons outside of a normal circle of a family and its
social acquaintances is gathered,' (17 U.S.C. SECTION 101) it is a public place
for copyright purposes. Whether the performance is by the playing of a CD or
tape, by a radio tuned to a particular station, or via music-on-hold (which
constitutes a public performance by virtue of its being a transmission to the
public), permission must first be obtained in order for the use of that music to
be lawful."
The Organization
Songwriters and music publishers are represented by two companies...Broadcast
Music, Inc. (BMI) and the American Society of Composers, Authors and Publishers
(ASCAP). These performing rights organizations, as they are formally known,
represent the writers and publishers who own the copyrights. You may also need
licenses from SESAC and Harry Fox Agency.
The Penalties
The law allows copyright owners to receive as damages for infringement
between $500 and $20,000 for each work infringed. Moreover, a corporate officer who has
the right or ability to supervise the company's music use and who has a direct
financial interest in the corporation can be held personally liable for the
infringement.
Enforcement
These agencies employ a small army of people whose sole job is to call businesses
and attempt to be placed on-hold. Violators are warned that they are
in violation of copyright laws, and they must cease the play of the radio
on-hold. Users who are caught in violation and refuse to pay license fees are
typically called by ASCAP and BMI subsequently to see if they have ceased
playing the radio or other non-licensed music source. Violators who are caught,
again, may receive substantial monetary court judgments against them. Some
judgments attempt to recover previous licensing fees that can go as far back as
from the time the business began operating.
The yearly fees involved in playing the
radio on hold can easily exceed the cost of a custom on hold production with out
the benefits:
Benefits of On Hold Advertising
- Reach a Captive audience
- Cross Sell Products & Services
- Inform & Motivate Callers
- Build Brand Awareness
- Enhance your Companies Image
- Separate yourself from the Pack
On Hold Advertising is cost effective and it targets your market like no other advertising can!
Why On Hold Advertising (Music on Hold)
You've spent time and money to make your phone ring. Now what? People are on the line ready to buy your product or sign up for your service. What happens when you place them on hold? What do they hear?
Don't lose sales because your callers hear silence on hold. Let Holdtel's On Hold Advertising help.