Licensing Rights
Playing Fair – The Basics on Music Licensing
Because we frequently get questions about how music licensing works, we’ve put together this general guide to music licensing as applied to our Digital Jukeboxes. It contains some general information about our licensing procedures and answers some of the most frequently asked questions. However, music is a specialized area of entertainment law and we recommend that you direct any specific questions to a knowledgeable attorney or music rights consultant.
At TouchTunes, we believe in the protection of copyright. We support the philosophy that songwriters and artists deserve to be compensated for their creations.
Music Rights
In general, each song that is played on our Digital Jukebox requires a license to reproduce the recording from the Record Company, which typically owns the master recording embodied on the record, and a license to reproduce the underlying composition, from each Publisher which owns a portion of that underlying composition. In addition, we secure the right to publicly perform these compositions from the applicable Performing Rights Organization (PROs).
Record Companies: Record Rights
The master recordings reproduced for use in our digital jukeboxes are protected by copyrights typically held by the Record Companies or the artists themselves. We are required to secure licenses for the reproduction rights to the recordings we use. TouchTunes has successfully negotiated master use licenses with all the major record labels as well as many independent labels and digital aggregators.
Music Publishers: Publishing Rights
The music publisher is the entity that owns the copyright in a song: the music and lyrics to the song itself, not the paper on which it is printed or the recording on which it is performed. Anyone who wishes to record, perform or synchronize a song in, for example, a motion picture film or television program, must secure a license and pay a fee or royalty. TouchTunes has successfully negotiated publishing licenses with all of the major music publishers and thousands of independent publishers.
Performing Rights: Public Performance Rights & Organizations
In the United States of America nearly all public performances of music are licensed through ASCAP, BMI or SESAC. Nearly all "professional" American songwriters belong to one of these societies and virtually all music publishers have companies which belong to all three societies. TouchTunes has agreements with all three of the US societies authorizing the performance of their repertoire consistent with the terms of each license agreement.
The US Copyright Act grants the copyright owner (songwriter or music publisher as the case may be) the exclusive right to license the performance of a musical composition in public. That means that no one may publicly perform copyrighted music without the express prior permission of the copyright owner or their agents. The PROs are set up to act as agents for their publisher and songwriter members.
ASCAP (American Society of Composers, Authors and Publishers):
Established in 1914, ASCAP has over 360,000 members and represents 8 million songs. The Society is a not-for-profit corporation. The Board of Directors is elected from songwriter, composer and publisher members. www.ascap.com
BMI:
Founded in 1939, BMI represents more than 400,000 songwriters, composers and publishers and their 6.5 million musical works. www.bmi.com
SESAC:
SESAC was founded in 1930. It is now a privately held company and the smallest of the three performing rights societies. www.sesac.com
JLO (The Jukebox License Office):
The JLO is a joint venture of ASCAP, BMI and SESAC that handles the licensing of public performance rights on non-digital jukeboxes in commercial establishments in the United States on behalf of music publishers and songwriters. The licenses we secure from Record Companies, Publishers and from the PROs have the same restrictions and limitations that a CD jukebox JLO License has. That is, both the JLO CD Jukebox License and the TouchTunes performance licenses cover only music performed when the jukebox is coin-operated, accessible and operated by patrons and located in establishments where no cover charge or entry fee is levied.
Other Music Uses:
Our licenses do not give the local establishment the right to engage a DJ to play music, to hire a live band to perform, to use the jukebox for karaoke or for any other use. Nor can the local establishment charge a cover, entry or similar fee to customers entering the location. Our licenses do not cover any other music sources such as radio, television, CD or MP3 players, especially if the music is played through our jukebox. Performing music at the location in this manner or charging admission is generally not authorized by the licenses TouchTunes obtains from the Record Companies, Publishers or PROs, and may subject the local establishment to liability for copyright infringement, unless other licenses are obtained. For further information please feel free to contact to our Music Department.
