Music and Movie Licensing - Policy Issue
Overview
Like many American businesses, apartment communities play musical works in common areas, such as reception areas, foyer or lobby spaces, leasing offices or elevators. In accordance with existing copyright law, the playing of music, movies or television shows in these areas is considered a “performance” of such work. This may require owners and operators to obtain licenses from Performing Rights Organizations (PROs), including ASCAP, BMI and SESAC in the case of musical works or MPLC, Swank, or Criterion in the case of TV and film works.
Industry Position
Rental housing providers should follow federal copyright laws in obtaining appropriate licenses to play music and movies in their communities. The National Apartment Association (NAA) supports music and movie licensing and copyright reforms that aim to improve efficiency, transparency and reduce burdens for apartment communities caused by a duplicative licensing administrative system.
As an Owner or Operator, How Does this Affect My Business?
In exchange for a licensing fee, PROs grant the apartment owner or operator the right to play copyrighted music or audiovisual works legally in apartment community public spaces. Over the past decade, activity by the PROs to collect licensing fees from apartment communities and other end users has increased substantially.
Contact Information
To learn more about this issue, please contact NAA's Public Policy team.
Despite rigorous work on the part of apartment owners and operators to understand and comply with copyright law, there remains a lack of transparency in the current marketplace for music and video. Reliable ownership information is sparse and not readily available on who owns the music or film and to whom the licensing fee(s) should be paid. This creates a duplicative licensing administration system. Additionally, there is a strong need for more specificity in the law about what might trigger licensing requirements at an apartment community.
The apartment industry urges Congress to do the following:
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Enact copyright and music/audiovisual licensing reforms to reduce compliance burdens for apartment communities and enable greater transparency in the ownership of artistic works so that end-users are clear about who they must pay.
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Define the space within apartment communities where music, movies or television shows are played requires licensing as only those areas not designated for residents only.
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Preserve the existing consent decrees governing ASCAP and BMI and continue the fair competitiveness of the music marketplace.
Music, movie, and television licensing obligations must be made clearly understandable to apartment owners and operators to effectively determine when a license might be required and what type of license is appropriate for the apartment community.