In order to effectively and efficiently enforce their rights
under Federal copyright laws, American composers, lyricists, and
publishers usually join one of the three performing rights organizations.
These organizations grant licensees the right to publicly perform
the works of all of their members or affiliates, for whom the
organizations collect and distribute the fees paid by the licensees.
More than 80% of the fees collected by the two largest organization,
ASCAP and BMI, are paid to composers and publishers as royalties
for the performance of their copyrighted works.
Foreign writers and publishers are also represented by these
organizations. Under this system, composers and publishers are
relieved of the burden of monitoring their copyrights throughout
the world. Moreover, those who wish to publicly perform copyrighted
works need not negotiate royalties with each composer or publisher
whose works they want to use. Three organizations license performance
rights for most of the music copyright holders in the United States.
They are: (1) the American Society of Composers, Authors and Publishers
(ASCAP); (2) Broadcast Music, Inc. (BMI); and (3) SESAC, INC.
When faced with the prospect of expending considerable time,
effort and money in trying to negotiate separate licenses directly
with each composer or publisher whose music will be performed,
most businesses using publicly performed music will choose to
obtain a Blanket License from one or more of the performing rights
organizations. A Blanket License permits the license holder to
perform any or all the works in the performing rights organization’s
repertory. THE NATIONAL FASTDANCE ASSOCIATION HAS A BLANKET LICENSE
AGREEMENT WITH ALL THREE OF THE COPYRIGHT ORGANIZATIONS. THEREFORE,
ALL CLUBS/ORGANIZATIONS AFFILIATED WITH THE NFA FALL UNDER THE
NFA’S “UMBRELLA” OF PROTECTION.
Given the broad scope of the protection given copyright holders
and those assigned their rights, anyone whose business in one
way or another performs music for its customers or members should
be aware that they may be called upon by one or more of the major
performing rights organizations to license the performance of
copyrighted works in their respective repertories. Buying a license
from one performing rights organization—say, BMI—does not protect
a business from liability for unauthorized performance of songs
in ASCAP’s or SESAC’s repertories.
A list of places and events at which licensing could be required
includes, but is not necessarily limited to: restaurants, bars,
clubs and hotels where live or recorded music is played; shopping
malls, stores that play broadcast or recorded music; spas, gyms
or other sites that offer exercise to music; trade shows; conventions;
dance studios; skating rinks; private clubs or fraternal organizations,
the Internet, etc.
Numerous NFA Conventions, events and major parties are located
at hotels. Though most hotels have their own licensing agreements
with the performing rights organizations, these agreements do
not usually extend to the NFA host club. This club must either
secure its own agreements in order to perform music or affiliate
with the NFA and come under its “umbrella” of protection.
What happens if a license is not obtained? The cost of performing
copyrighted musical works without a license can be far greater
than the cost of the license. Failure to obtain a license to perform
publicly copyrighted music is copyright infringement under the
copyright laws. The copyright infringer is subject to a civil
suit in federal court. Sanctions against an infringer can include
an injunction and the copyright owner’s actual damages, as well
as the infringer’s profits, or “statutory damages” of up to $30,000
for EACH copyrighted song performed without a license (up to $150,000
if the infringement is willful). The infringer can also be required
to pay the copyrighted owner’s legal fees. The law further provides
for criminal sanctions against those who willfully infringe on
a copyright for commercial advantage or private gain.
The National FastDance Association has obtained Blanket License
Agreements with the three performing rights organizations specifically
to protect our affiliated members from unnecessary difficulties.
We currently have numerous major events hosted by our affiliated
members all across the country. These are professional people
who want to offer a legitimate event that falls within the parameters
set by copyright laws. They want to do the right (and legal) thing
that will allow them the luxury of one less problem. Typically,
the average NFA event has 200-400 participants. The fee for ASCAP
is approximately $70.00, and for SESAC, about $50 per event. The
current annual fee to BMI is absorbed by the NFA. So, the average
cost to those hosting an NFA affiliated event is only $120.00
to make it totally legitimate. The fees are not “marked up”, and
we process all reports and paperwork.
The ASCAP, BMI and SESAC “umbrella” can also extend to the frequent
monthly or bi-monthly club parties held in locations not usually
covered by such protection. Additionally, the coverage can extend
to those who are dance instructors outside the realm of dance
studios.
The NFA will be happy to send an informative brochure that tells
more about ASCAP, BMI and SESAC. Simply write to us at:
National Fastdance Association
3371 Debussy Road
Jacksonville, FL 32277
(Request Publication No. 07-24-276)
Or call us at our toll free number: 877-NFA-CLUB
We would also encourage you to visit the web sites of the three
performing rights organizations.
ASCAP: www.ascap.com
BMI www.bmi.com
SESAC www.sesac.com
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