BMI Licensing for Business Explained

BMI’s significance in the music industry cannot be overstated. It represents an expansive and ever-growing catalog of music created by some of the world’s most renowned and budding artists. This makes BMI an essential partner for music creators seeking copyright protection and businesses looking to legally and ethically use music to enhance their offerings.

Who BMI Represents

BMI’s roster is impressively vast, including more than 22.4 million musical works by 1.4 million songwriters, composers and publishers from around the globe, including Taylor Swift, Luke Combs, Lady Gaga and Elvis Presley. It spans a multitude of genres, from pop, rock, jazz and classical to country, R&B, hip-hop and beyond.

But BMI’s reach isn’t all-inclusive. A number of creators, such as Billie Eilish, Jay Z, Garth Brooks and Lin-Manuel Miranda, are represented by ASCAP, another leading PRO. The diversity among the artists represented by the different PROs makes licensing complex. Businesses must ensure they have licenses from all the appropriate organizations for the music they want to play.

What Is a BMI License?

A BMI license authorizes businesses and organizations to legally play music from the PRO’s vast catalog. This license is not just a formality  — it’s a legal requirement. BMI offers a variety of licenses, depending on the specific needs of different users. These include, but are not limited to:

• Radio Stations: These licenses allow terrestrial, satellite and internet radio stations to broadcast music to their listeners.
• TV Stations and Networks: From local broadcasters to national networks, these licenses cover the public performance of music across television.
• Live Venues and Clubs: Whether it’s a cozy café hosting live music nights or a concert hall, BMI ensures that performances are legally covered.
• Restaurants and Bars: Establishments serving food and drink often enhance their ambiance with background music or live performances, requiring a BMI license to do so legally.
• Digital Platforms: With the rise of digital consumption, BMI licenses extend to streaming services, websites, and other digital platforms, ensuring that music can be legally enjoyed in the digital realm.

Nearly any business, including fitness centers, doctors’ offices, retail and convenience stores, spas, hotels and commercial properties, needs BMI licensing, even if they play music over the radio or television. If you’re wondering, “Does my business need a music license?” The answer is probably yes.

Each type of business has a tailored fee structure that reflects the specific use case of music in that setting. For example, a live music venue’s fees might be calculated based on factors such as the venue’s capacity and the frequency of live performances. In contrast, a restaurant’s fees could be determined by its square footage and the type of music played, whether live or recorded.

For small to medium-sized businesses, such as cafes and local restaurants, annual fees can range from a few hundred to several thousand dollars. Larger establishments may face higher fees, which can escalate into tens of thousands of dollars, reflecting the broader reach and potentially greater revenue generated from the use of copyrighted music.

Fees are collected annually; sometimes, companies may be eligible for discounts for belonging to an association or paying on a specific schedule.

When a business plays music in a public setting without the appropriate licensing from a PRO like BMI, it infringes on these copyright protections.

The consequences for businesses and venues that fail to obtain the necessary BMI licensing can be significant. BMI actively monitors commercial establishments for compliance with music licensing requirements. If a company uses copyrighted music without a license, BMI typically first sends out a licensing notice in an attempt to educate the business about copyright law and the need for a license. If these efforts are ignored, BMI has the legal right to take action against the company, including filing a lawsuit for copyright infringement.

Real-world examples of legal actions taken by BMI against unlicensed music use underscore the seriousness of copyright infringement. These cases often result in court orders requiring businesses to pay damages and legal fees, often amounting to thousands of dollars. For instance, establishments ranging from small bars to large restaurants and even retail chains have faced litigation for failing to secure the proper music licenses. In many cases, the cost of settling these legal disputes far exceeds the expense of obtaining a license in the first place.

Beyond the financial implications, legal actions for copyright infringement can also damage a business’s reputation, losing your customers’ trust and goodwill. This is especially relevant in an era where consumers increasingly value social responsibility and ethical business practices.

Frequently Asked Questions About BMI Licensing

BMI licensing can be challenging to navigate. But SiriusXM Music for Business is here with the answers to your questions. Read on to learn more, and be sure to see our music licensing explainer for additional information.

Is BMI Licensing Legit?

Yes, U.S. copyright law recognizes BMI as a legitimate licensor of music.

What Happens If a Business Plays Music Without a BMI License?

If you play BMI-represented music without a license, the PRO will contact you to inform you of the violation and explain the importance of BMI licensing. If you continue to play music without the appropriate license, the PRO can take you to court, where you may be liable for thousands of dollars in fines.

What Are BMI Alternatives for Businesses?

If you don’t care about playing BMI-represented music, you can license with ASCAP or another PRO to play the music they represent. It’s usually easier and more cost-effective to sign up with a streaming music service like SiriusXM Music for Business.