Legal Question in Entertainment Law in California
Being sued for royalty infringement
I was told I could be sued for royalty infringement by playing recording artists CD's on our office phone system for people to listen to while on ''hold''; true or false???
2 Answers from Attorneys
Re: Being sued for royalty infringement
You would be infringing their copyright because you have not obtained a license. Specifically, playing their music on your telephone line would constitute a public performance, and since you did not obtain a license, you are not contributing to their royalty which they are entitled to. Depending on the music, you can obtain the license from ASCAP, BMI, or SESAC.
There are however, some services that provide "on hold music" that do not require licenses.
Re: Being sued for royalty infringement
The short answer is, yes. I assume you've been contacted by a representative of BMI, ASCAP or SESAC. In order to play such music over your telephones, you'll need to obtain a license from them. Alternatively, you can purchase a licensed background music system, which should do the trick.
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