Why do I need a license to play copyrighted music On Hold?

(...or How DO Rock Stars Afford Those Lavish Cribs?) 

If you’ve just decided to upgrade your callers’ On Hold experience, you may be asking the question above.  It’s a great question and ignoring the answer could put you in violation of U.S. Copyright law…and cost you a hefty fine.

There are a host of people involved in the creation and production of songs and music, including composers, authors and publishers.  In fact, their musical works are protected as “intellectual property” by U.S. Copyright Law.  Here are just two examples of how copyright holders make their living thru licensing:

Bought a CD? A portion of purchase price for a music CD goes to the copyright holder. The purchaser of the CD is granted license for personal listening and for people in the car or home. (not for re-broadcast at the neighborhood bar-b-que, school pep rally, or thru a telephone system.

Listen to music on the radio? As you know, radio stations derive their income from advertising fees or subscriptions. A portion of the radio station’s income goes to the copyright holders of the music they broadcast. The listener is granted license for personal listening and for people in their car or home. (not for re-broadcasting to groups, pep rallies, or thru an intercom or telephone system.)

Bottom line: Playing copyrighted music through a business telephone system constitutes a “re-broadcast” and requires a separate and specific license.

Best Solution: Customized Music and message productions provided by On Hold Marketing are properly covered under licenses maintained with multiple music producers.