The Ins and Outs of Music Licensing
When owning and operating a dance studio there are some much-needed essentials, like the proper flooring, barres, mirrors and music. It seems like a no-brainer until you begin to look into the specifics. There are so many different types and brands of floors you can purchase, and searching for the right mirrors can become a difficult task in itself—where to find the coveted “skinny mirrors?” Then there is the music. It seems pretty straight forward, and we all know it is a fundamental element to any dance class. Music can be the life force behind our every movement on a good day or the signal to just begin our pliés on the not-so-good days. But whether it’s played by a live pianist or a CD in a stereo we need to pay our dues.
A music license can slip under the radar or be a misunderstood nuisance to some, but the reason we need one is actually quite apparent. You wouldn’t use someone else’s choreography without their permission and (if required) paying royalties, so paying to utilize others’ music should seem only fair. There are only three organizations in the United States that issue music licenses, and each has an extensive repertory of music: the American Society of Composers, Authors and Publishers (ASCAP); Broadcast Music, Inc. (BMI); and SESAC, Inc.
“[Music] is owned by someone, so you need to pay them for it,” says Vincent Candilora, senior vice president of licensing at ASCAP. “That’s basically what copyright law is; it’s someone’s intellectual property.”
Of course, copyright law is very involved with a long history and various amendments, but that’s the gist of it. You pay to play music in any public setting, whether it is for your ballet class, radio music in the background of your waiting area, or for the big recital.
The concept of “intellectual property” came up again and again while discussing music rights with each organization. This gives us something tangible to grasp—the musician’s expertise, talent and product are what we are paying for. It is easy to be confused as to why we have to pay when we can listen to the radio in the car for free. But on the most basic level, when music is played or performed in a recital or in a dance studio it is public space.
So how do you begin and what does the music license cover? Each of the three organizations offers a Dancing School, Dance Instructor or Dance Instruction Facility license (the name has a slight variation per each organization, but hey, “A rose by any other name…” right?). So, they all cover approximately the same grounds of music use. As a studio owner, you would seek a music license from the organization that owns the music you need. According to the U.S. Better Business Bureau (BBB), a business owner may also obtain a blanket license, which spans all three repertories. No matter which organization you are licensed with, a music license is absolutely necessary.
“[The license] makes all copyrighted material available through SESAC you would need to conduct business,” says Bill Stevens of SESAC. “It covers instructional work and recitals.” Both SESAC and ASCAP have a dance school license that canopies classroom work and performances like recitals. BMI’s “Athletic Clubs/Dance Classes” license only covers classes and performances in the dance school itself. If a recital or competition takes place at another venue, a “Competitions/Shows” license is required, although exceptions may be made if the outside venue already has a license with BMI.
In most cases the license can travel with the dance school, but when performing at another business, like a mall, that business is responsible for its own music license. The mall will usually already have permission for all of the music it plays and for special events around the holidays. This would certainly cover a studio’s dance performance.
However, Jerry Bailey, a spokesperson for BMI, mentions that dance schools renting out an auditorium, arena or stadium are often responsible for obtaining their own music permission. “Most of the time public auditoriums ask for renters to secure all of their own licensing,” he says. So a worthwhile warning to any studio owner or director: check with your venue beforehand to see if they are covered or if you are obligated to provide a license.
Again, it is also important to check with the organization you are licensing with because they may have differing guidelines and exceptions.
BMI, SESAC and ASCAP all represent the musical artists and their rights to be compensated. Each was founded in the early 1900s and singers, songwriters and composers utilize these organizations so they do not have to manage their own copyrights. ASCAP is the oldest, established in 1914, and according to Candilora is slightly different from the others because it is the only one owned and run by the composers, publishers and songwriters themselves.
As mentioned before, there are some exceptions like when teaching or involved in charitable endeavors, but in most cases music licensing is explicitly outlined in the copyright laws. “Often dance teachers will say, ‘We don’t need a license because we’re teaching.’ That in itself does not make them exempt,” explains Bailey. “They are teaching for a profit. If it’s a face-to-face classroom situation or a non-profit organization then they don’t, but most studios operate for-profit.”
Bailey further outlines a narrow exemption as a non-profit or charity event, like a concert or performance, where no one gets paid—that includes everyone, the performers, organizers, stage crew. When this is the case, BMI does not require a music license.
Now that we know what a music license does and does not cover, the next question on everyone’s mind is how much does it cost? The fee varies with each organization and mainly depends on how many students are enrolled in the dance school. As the number of students increases, so does the fee. The license lasts for one year, so each fee is annual. Here are some examples and an approximate break-up:
SESAC: Around $94/per year. (Further distinctions are available on their licensing agreement).
BMI: $284/per year for instructional use only for a school with 60-124 students. (Further distinctions are available on their licensing agreement).
ASCAP:Around $120/per year. (Further distinctions are available on their licensing agreement).
Each of these prices depends on the needs of the individual dance school and the music they will be playing. Also, how many students in the school, whether it will be used for background music and/or instructional use, and (in some cases) the type of dance taught all factor into the yearly price. Each organization has its own criteria and qualifications.
Discounts are also available for a music license if the dance school belongs to the Dance Masters of America or the Dance Educators of America. If you belong to one of these organizations, be sure to take advantage of the price reductions they offer.
The cost of not having a music license far outweighs the cost of buying one. According to the Better Business Bureau, being caught without a music license is a case of copyright infringement. Up to $30,000 per each copyrighted song performed without a license and up to $150,000 if the “infringement is willful,” as well as other fees may be charged.
Owning a dance studio, like any other business, requires the proper (and legal) preparations to keep it running smoothly. As dancers we understand the labor and love that goes into our work, which is why the notion of intellectual compensation is not difficult for us to grasp: the musician must be acknowledged. Music is so valuable to dance instruction, so there’s really no way around it. That is why it is so important to pay for what you use, or in this case, the proper business term is “pay to play.” So, are you covered?
Broadcast Music, INC (BMI)
10 Music Square East
Nashville, TN 37203
(800) 925-8451
www.bmi.com
SESAC
55 Music Square East
Nashville, TN 37203
(800) 826-9996
www.sesac.com
American Society of Composers, Authors and Publishers (ASCAP)
2690 Cumberland Parkway, Suite 490
Atlanta, GA 30339
(800) 505-4052
www.ascap.com