By Steven Kaip, Managing Partner, MusicOnHold.com  

Before you record that music off of the radio, or use that professionally recorded CD, or even simply connect a radio for your on hold messaging content, you need to understand the law. It is not all that simple. Licensing will be needed, or you could find yourself in an unnecessary lawsuit. Here are some tips on what you can and cannot do.

The Purpose Behind The Licensing

The reason behind the licensing of playing music - from any source, even from the radio, is simply because they who either made it, wrote it, or played it are entitled to any financial gain that can be made from their work. In plain English, if you make it, it is yours, and you are entitled to do with it what you want, and not anybody else without your express permission. This holds true in just about every area of work, art, or life - unless you are under the employ of another for that work.

Now it is true that some would disagree with this - at least in some aspects of it. There is no time to debate that issue in this article. Playing a CD from your favorite artist, or connecting the radio is legally considered broadcasting. And like all broadcasters, you'll need a license to broadcast, and you'll need permission to broadcast licensed content like your favorite song from your favorite artist..

Buying A CD, or MP3, Does Not Give License

When you buy that pre-recorded CD in the store, or download a legal MP3 file such as those sold from Apple;s iTunes, it only gives you the right (permission, or license) to enjoy private listening. If you in any way want to play it for the benefit of others, other than your immediate friends and family members, then that is considered broadcasting. Playing the music in a restaurant, bar, office, store, or putting it onto an on hold messaging machine requires a license.

There are three large companies in the U.S. who are the regulators of ensuring that musicians and artists receive their fair share. Licenses need to be obtained from them - depending on the songs played. These licensing agencies are: Broadcast Music Incorporated (BMI), the American Society of Composers, Authors, and Publishers (ASCAP), and Society of European Stage Authors & Composers (SESAC). A few other small ones exist, too. Individual songs, or music from CD’s used in an on hold production need to be licensed by contacting those organizations.

Music Used In Your Custom On Hold Message Is Already Licensed

When you have a professional audio marketing company create your on hold message production, you are usually given a license for the music that is contained in your production. Your on hold provider will include paying the license fees as part of their overall package. This license is generally only valid for the one production it is used on. A second production, using the same music would require a second payment for a second license. But don't worry, your on hold provider already knows this and it will be included in their price.

By working with a reputable on hold message agency you can be assured that your messages and your company will not be the subject of front page news and you will not be singled out for additional payments and or fines.

For the exact legal details, you can always check BMI, ASCAP or SESAC web sites or my recommendation is simply to inquire further with your on hold message provider.