Mechanical Royalties Due?

[yosefTux]

If a business uses an instrumental portion of a recording as their hold music (in their phone system) are mechanical royalties due? In the case I'm thinking of, it's at up to 200 locations, and the single song is on a loop, changed about once a month.

[nadumr]

from what I understand of what you're describing, the answer is no.
a mechanical license is for the right to sell a recording of a song.
they should have obtained a performance license for both the recording and the composition though.

[yosefTux]

Thanks. Got my terms mixed. I was wondering, because I suppose it could fall under private performance (they don't charge you for calling them).

[nadumr]

That doesn't sound right. They're still using it for commercial purposes. How did they get your instrumental music to begin with without obtaining a license?

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[brandobean]

Originally Posted by nadumr

That doesn't sound right. They're still using it for commercial purposes. How did they get your instrumental music to begin with without obtaining a license?

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Yeah. Something isn't right. Businesses can't use copyrighted material for commercial purposes. That includes playing your music in their waiting room (which is. Public performance) and I would think in their hold call system too.

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[Don Hills]

Wouldn't that be covered under the same rights required (fees paid) for playing music in a workplace?

[MediaMix]

Originally Posted by yosefTux

If a business uses an instrumental portion of a recording as their hold music (in their phone system) are mechanical royalties due? In the case I'm thinking of, it's at up to 200 locations, and the single song is on a loop, changed about once a month.

Call your PRO (BMI/ASCAP) rep. I'm sure they are already on top of it. If not, you alerted them.

[nadumr]

your PRO can address the issue of the composition being performed, but the recording, assuming you own it, needs to be licensed by you to them for commercial use.

[yosefTux]

Thanks for all the responses. This was a question based only on hearing their hold music, and I was simply curious to know what their obligations are. Since this is a client of my company, I would not be able to disclose without some real indication of a violation.

This is a popular restaurant chain, and the phones are mainly used for reservations, so their legal staff would have to be pretty stupid to overlook this aspect of their business. I think this is music they've also used behind their ads, so it's a good bet it's licensed for this use as well.

I know of another company that uses a shoutcast broadcast (Radio Paradise) - arguably the best hold music I've ever heard, I'm often disappointed when they pick up the phone.

There is another company that uses multiple live DJs for their hold music, one for each group of queues - Microsoft. The DJs announce wait times, and tell you personally when you're next.

[brandobean]

I've heard companies using radio stations for hold music. That puts the song selection out of there hands...but I don't know the legal ramifications of it.

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[nadumr]

It's a pretty brainless move for a restaurant to use a commercial radio station for their hold music. What happens if a commercial for their competitor comes on the air? It's different if they use a commercial-free service like Muzak, who have already licensed the songs they use to be used by their commercial subscribers. Maybe your client had already licensed their music to a service like this (and provided an instrumental).

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[yosefTux]

I have heard that awkward moment before
Happens in restaurants with sports bars on their TVs all the time

[narcoman]

they will have paid a general purpose music license use - same as a broadcaster.