Exactly, Asmovian. I am asking if there is a legal exception I fall into, like you don’t have to do X because you have less than Y employees, etc. I know I can probably get away with it, but I am hoping (maybe foolishly) that because I am so small or because of the type of business, I fall into an exception and actually don’t need a license.
I’m not aware of any exception according to the letter of the law.
However, there is an grey area informal pass based on how the music is played. For example, if there was a receptionist in the waiting room area and she was simply playing her radio at her desk, it’s incidental that the guests can also hear it. This is not the legal exemption you’re looking for but nobody goes after businesses for this type of thing. Car mechanics play their radios in the auto dealer service bays. People play radios at the beach. These are all “public” places.
However, it’s quite a different thing to pipe that same music on speakers mounted in the ceiling. In this case, the music contributes to the “atmosphere” of the business.
As with many legal issues, there is no exact boundary between music that is incidental vs music that is atmospheric. If you’re running a disco, you’re going to have a very hard time convincing a judge & jury that the music is incidental to the business, no matter what kind of sharp lawyer you have.
One way to avoid BMI ASCAP is to only play royalty-free music intended for waiting rooms and elevators: royalty free "music on hold - Google Search
The drawback with that is that it can get monotonous.
Let’s get this out of the way: I’m a lawyer, I don’t know you from Chuck E. Cheese, you’re not my client, and this isn’t legal advice. K? K.
There are big exceptions carved out of copyright law that permit just the sort of thing that you’re asking about. However, I don’t specialize in copyright law, so I’m not going to wax philosophic about whether your particular setup and use is or isn’t an infringing use. Instead, under the assumption that you’re an intelligent person, I’ll point you to the law on the subject.
Copyright law is in the U.S. Code at Title 17. Most of the stuff you’ll be interested in will be in Chapter 1. More specifically, you’ll want to peruse 17 U.S.C. sec. 110 et. seq.. Depending on your setup and your planned use, you may find an exception carved out in there for you. You will note, for example, that section 110(5)(B) permits a non-food-service establishment to publicly play a radio receiving terrestrially-broadcasted music, provided that the establishment is less than 2000 square feet, that the sound system have no more than 6 speakers and no more than 4 in one room, that no one is charged to listen, that the transmission isn’t further broadcast, and that the broadcasting station is licensed.
If you’re still leaning toward XM, you’ll need to look a little deeper for the rules as they relate to digital, non-terrestrial, paid-subscription broadcasts. Hope some of this points you in the right direction.
Edited to add: out of curiosity, why were you comfortable calling BMI and inquiring about a license, but not about calling XM to inquire about their price?
I believe the leeway provided by this code is designed around radio broadcasts that have embedded commercial advertisements. The broadcaster already pays BMI ASCAP and this law allows reasonable situations for the listener (consumer) to not have to pay BMI ASCAP again.
It sounds like Brynda wants to play music without commercials (CDs or XM).
I suspect that “XM for Business” has that additional BMI/ASCAP fee built in; usual subscription fees for satellite radio run about $13 a month, but when I searched for “XM for Business” the prices I saw quoted were around $30 a month. Sorta like the premium pricing added to "Music CD-R"s.
The compositions are in the public domain. The recordings are not and are subject to licencing (to collect performance royalties).
Does your partner have any recordings of her songs, especially a CD that she has recorded herself? I don’t think there would be any problem whatsoever with her music being played in the business space that you both share, since she is the creator. She may have to get permission from her publisher/distributor/label, but I find it hard to believe that she wouldn’t get it from them.
By the way, even though the discussion is about the playing of music in the lobby (or common area/s) of a commercial space, I believe the same restrictions apply to on-hold music.
A number of years ago, I was in charge of Information Technology for a not-for-profit charity, and we had a CD player plugged into our phone PBX system. We had several CDs and would put a new one on every week, with Christmas music during the holiday season.
The husband of one of our employees worked for a religious music publishing company. At least one of the CDs we were playing was a free, promotional CD that the music publishing company had distributed. He heard his company’s on-hold music one time and told us that, while he wasn’t going to rat us out, technically we were in violation of re-broadcasting copyrighted material. Just to be safe, he asked the company’s legal office about it, and was told that he was correct.
As others have said, though, the chances of being prosecuted are very slim (or non-existent).
Having said all that, there are many places on the Internet for “royalty-free music”. You may find some sites where reasonably good musicians have made their music available for free. Most sites, however, require a license fee pretty close to what you have already been quoted by the BMI/ASCAP folks.
As a potential patient sitting in a waiting room, let me add my 2¢. I do like classical music but not everyone has the same taste in music.
I have been in many waiting rooms where there is a TV. I find it annoying and nerve-wracking. I’d rather sit in a doctor’s office with my own thoughts or something to read. I don’t want to see a soap opera I don’t normally watch, a game show, or Jerry Springer. None of that is my taste and I find it an intrusion on my time. Yes, I’m in YOUR waiting room, but it’s MY time… until I am actually talking to the doctor face to face.
My dentist has a TV with recordings on it about dental health. Who thinks this is a good idea? I don’t want to be entertained nor sold a product. I made it on time for the appointment and, frankly, I want to be see on time. If I have to wait a few minutes, I liked it when it was just a quiet place…
Sorry, I know this isn’t what you asked. But it’s a recent pet peeve. We really don’t need to be stimulated all the time.
You know, when I’m in a room where a TV is playing something I don’t want to watch, I… don’t watch it. Radical philosophy, I know, but desperate times, desperate measures, etc.
I totally understand. But sometimes they have it turned too loud and the room is too small so it’s kind of in your face. I try to read and if I can get into it, I can ignore the TV. But sometimes not. Like if I had a medical issue I was concerned about and I’m nervous. Then the TV grates on my nerves. 
Maybe I should just sit in the hall and they can come and find me when it’s my turn…
Well, the bluegrass songwriter won’t mind. 
At $30 per month, the XM is only $160 more than paying BMI and has the added advantage of supplying the content. I’m not a big fan of XM programming, but the ability to change the station one in a while might be nice. The same could be said of other sources though.
What are the terms of the BMI or ASCAP license? If you pay them their money, are you then free to use just about any music you have available? For instance, can you listen to Pandora all day long at work and be OK?
You only have limited public performance rights for the collections of music that fall under BMI or ASCAP organizations.
Probably not because Pandora would inevitably play a song that was not covered by BMI or ASCAP. However BMI + ASCAP together covers about 93% of the music out there (at least 93% of the top40 popular music – I’m not familiar with the licensing stats for classical music recordings.)
How do you manage not to listen to it?
If Brynda pays the $200/year to BMI is she covered by both, or does she also need to pay ASCAP?
You pay each licensing entity separately.
Here’s a good article about music licensing: How Music Licensing Works | HowStuffWorks
However, if you buy the “XM for Business”, it is the XM network that pays for both BMI and ASCAP on your behalf. The consumer (the dentist office, restaurant, etc) of XM wouldn’t need to deal with BMI and ASCAP in that situation. However, you have to play what XM actually broadcasts. Just because one subscribes to “XM for Business” doesn’t mean they can play any personal CD in their private collection at the office.
How dos this work for DJs hired for weddings? These guys have tons of cds and albums that they are playing for a crowd. And they’re making money off of it too.
Do they have to pay royalty fees of some sort?
Yes, they are supposed do.
Most DJs are not in compliance but they stay under the radar because they are not the “big fish.” ASCAP and BMI enforcers go after businesses: restaurants, clubs, etc.
(Sometimes, you hear of “DJs” being nabbed for copyright violations, but these are not your weekend warrier DJs at neighborhood weddings. The DJs in those news articles are re-mixers of popular music releasing high-profile CDs. Two totally different species of DJs.)
If it’s a live band instead of a DJ, then most likely they are playing covers of other artists’ songs. The live band also is supposed to pay royalties. Again, most don’t.
If your child sings a cover a song for a school talent show? Hmmm… I don’t know that one and would have to look it up. My guess is yes, you owe royalties for that as well.
I would love to see the idiot who would try to prosecute the child.
Ok, you guys can go back to the discussion now.
Thanks so much, everyone. Just a few comments:
Max Torque, thank you so much for the link. That was one of the main things I was hoping for–a link to the actual regulations.
I didn’t call XM for business because I thought they might rat me out if I didn’t subscribe. I know, kinda paranoid. Sometimes I am a dumbass. I was afraid it was going to be more like $100 a month, especially since I couldn’t find the price online–as far as I could tell, you have to call them.
Ruminator, thanks for your link, too. I will read it later, but wanted to go ahead and post. You are right that I want commercial-free music.
On the side issue of not liking music/tv in the waiting room, I hate tv in waiting rooms, too luvs2draw. The reason I want music is so that it serves as a sound shield. My offices aren’t as soundproof as I would like (I hate hearing any outside noise when I am in session) so I want the music instead of a white noise machine. I get sick of the white noise. The music will be playing pretty softly.
PS It was brought to my attention that I was kinda snotty when I described lawyers charging by the hour. I am sorry, and can see how that came across. Pretty stupid of me, especially when I was hoping a lawyer would answer the question. I apologize.