Frequently Asked Questions

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   1. What is the Television Music License Committee and what does it do?

We are a non-profit association that helps all full-power, commercial television stations in the United States and its territories deal with ASCAP, BMI and SESAC (the PROs). We negotiate music performing rights licenses that stations sign with these organizations. We design the method of allocating industry-wide fees among all of the stations licensed by the PROs (the vast majority of local television stations), subject to agreement of the PRO or court approval and then perform this calculation of fees. After stations sign their license agreements, we try to help resolve problems between stations and the PROs when they arise. We are the station's advocate.


   2. How is the Committee funded?

Through voluntary station contributions.


   3. How is the Committee structured?

The Committee is made up of volunteers from television stations and group broadcasters throughout the country (representatives of large and small market stations, affiliates and independents.) See the Committee page for more information on Committee members. There are three paid staff employees who work in New York and Washington, DC.


   4. What does a music publisher do?

It used to be that a main function of a music publisher was to publish the sheet music of its members. In that way they were helping to promote their music. Now, though they still do that, they do much more. They own or administer the copyrights to their music (i.e., you would go to them for a synchronization, master use, or even a public performance license). They promote their music (e.g., trying to get radio stations to play music in their catalog) and protect composers (e.g., dealing with the PROs on their behalf).


   5. What are music public performance rights?

One of the rights the copyright law grants to composers is the right to collect royalties for public performances of the music they create. ASCAP, BMI and SESAC license performance rights. For a television station, the public performance right means the right to broadcast music over the air in programming as well as in commercials and promotional and public service announcements. For a restaurant, the public performance right means the right to play music in the restaurant for the diners to hear. For a gym, it can mean the right to play music in the aerobics classes. In all of these instances, music is being performed for public consumption. For further information see the copyright basics page.


   6. Doesn't my network pay for that?

Yes and no. If you're an ABC, CBS, NBC or Univision affiliate, your network has a network license with ASCAP, BMI and SESAC but that license only covers performances of music contained in the network shows. As one of those affiliates you still have plenty of programming that is not "network" and your licenses with the PROs cover performances of music in your "non-network" programming and announcements. The PROs to date have not licensed Fox, Pax, UPN, WB or TBN, so for affiliates of these networks and for other independents, your licenses with the PROs cover all of your programming (even the network stuff). As far as music licensing is concerned, only stations affiliated with ABC, CBS, NBC or Univision are considered "network" stations; the rest are considered "independents."


 7. What do ASCAP, BMI and SESAC do?

These PROs represent music composers and publishers by licensing and collecting royalties from businesses that publicly perform, i.e., broadcast or play, the composers' and publishers' music. ASCAP, BMI and SESAC collect information about what music is being performed so they can pay composers and publishers some of the money that was paid to them by the businesses that performed their music. A composer can only be a member of one PRO at a time, but music publishers can have affiliates of two or all three PROs.
In short, the relationship is like this:

PRO licenses a business

the business plays music and the business pays PRO

PRO pays the composer/publisher for the music
that was played by the business.


   8. Why do I need to have licenses with the PROs?

Television stations play, i.e., broadcast, music throughout their broadcast day and the composers and publishers of that music are entitled to a payment for the music in those programs. Playing music over the air without the music copyright owner's permission is copyright infringement. Producers of television programs and commercials usually do not pay for music performance rights. Since most television programs and commercials contain copyrighted music from one or more of the PROs' repertories, having a license with all three PROs provides protection from copyright infringement risks. For example, a song can have two composers and one can be represented by ASCAP and the other by BMI.


   9. Why don't I get performance rights when I buy the show from the syndicator or when I get the music from the
   music
library?

When you contract with syndicators for their shows, they give you all of the rights needed to air the shows except for this one right. Why? Historically, composers have found it more profitable to license these rights through the PROs than to negotiate prices directly with producers. In addition, many producers benefit from the system insofar as they control the music publishing rights and receive royalty distributions from the PROs. Most music libraries are members of ASCAP, BMI and/or SESAC so that when you contract with them for their music, they are hoping to get money from you as well as their PRO. They are generally only granting you the synchronization rights (i.e., the right to mix or synchronize their music with your video) unless you purchase the performance rights, as well.


   10. If I wanted to, could I license the performance right to the music in a show from someone other than a PRO?

Yes, if the music publisher is willing. The relationship between the PROs and their composers and publishers is a non-exclusive one. That means that the composers and publishers can license their performance rights directly to you. They don't have to do this but they can. You just have to make sure to ask for these rights and be prepared to pay for them.


   11. What is a blanket license and a per program license?

A blanket license protects you from copyright infringement for performances of all music in a PROs repertory. Under a blanket license, you pay one price each month no matter how much of the PROs music you use. A per program license also protects you from copyright infringement for performances of music in a PROs repertory. However, under a per program license, you only pay for programs that have the individual PRO's music in it. Under a per program license, a station files detailed monthly reports with the PRO showing what it aired that month and which programs contained music from the PRO. If you "clear" (i.e., remove or get the rights directly from composers or publishers) enough of a PRO's music from your programs, you will pay lower total fees under a per program license than you would have had you been paying on a blanket license.


   12. Why would I ever want to license music performance rights directly from composers and publishers or
   through my
program suppliers?

If you're on a per program license with a PRO, then licensing the performance rights to music in some of your shows allows you to pay less money to the PRO. (SESAC does not currently offer a per program license.) If you have a blanket license, acquiring performance rights directly doesn't make much sense, since it wouldn't reduce your blanket license fees.


   13. How is it determined how much I pay ASCAP, BMI and SESAC?

The Television Music License Committee designs the method for allocating industry-wide fees (determined either through agreement with a PRO or by a federal Rate Court) and then performs the calculation of fees using one of two methodologies. With ASCAP and BMI, we use a methodology (approved by the Rate Court) that, in short, takes the industry-wide fee and allocates money to each market based on Nielsen DMA size. Within each market the money is then divided up among the stations based on a 3-year average of ratings.

There are two components to the SESAC allocation: part one is based on ratings and part two is based on your network affiliation.

To see the actual allocation methodologies, take a look at your station's licenses.


   14. How can I budget for the future?

The television industry is operating under final licenses with BMI and SESAC through December 2004. The industry-wide blanket license fees for both BMI and SESAC will stay the same in 2004 as in 2003 ($85m with BMI, $13.5m with SESAC), but there will be a reallocation of fees among the stations in 2004, just as was done in 2003, based on fresher ratings data. If your ratings increase, your fees will probably increase or if your affiliation changes your SESAC fee could change. If you would like some more specifics on this, please call us.

Currently the industry is in litigation with ASCAP to determine final license fees beginning April 1998. During this interim time, your fee will stay the same. However, when the lawsuit is resolved with ASCAP (either through mutual agreement or court decision) that result will go back to April 1998, and so you should protect yourself going all of the way back to then. It is possible that even if we win our case and the industry fee decreases, due to a particular station's ratings, your ASCAP blanket fee could increase. If you would like more specifics on this, please feel free to call us and we will try to help you.


   15. What if I am streaming or want to stream my local programming on my station's website, is the music in those
   streamed
programs covered by my ASCAP, BMI and SESAC licenses?

Both the BMI and SESAC licenses ended December 31. 2004. In both cases, stations are currently operating under interim licenses that protect them from copyright infringement liability during the interim period, but at least some website transmissions may have to be separately licensed or may be subject to additional fees retroactive to January 1, 2005.

Arbitration proceedings with SESAC were concluded at the end of January 2006 and we are currently awaiting a final arbitration decision that will be retroactive to January 1, 2005. SESAC argued that the website performance rights subject to arbitration were limited to those in the current SESAC license. We requested expanded provisions. Stations should be immune from copyright infringement actions during this interim period, however, the final license provisions may include retroactive fees for some website uses and may require separate licensing for others.

We are working with BMI to negotiate a final license that will include at least some website privileges. Although we are uncertain of the final provisions of that license, stations should be able to transmit through their websites without concern for copyright infringement during this interim period so long as the programming is locally produced. However, the final license provisions will be retroactive to January 1, 2005 and may include additional retroactive fees for some locally produced website performances and some website uses may require separate licensing.

We do not expect either the BMI or SESAC licenses to cover website transmissions for which a subscription fee is charged.

The final ASCAP license (covering the period December 1, 2004 - December 31, 2009) allows stations the right to transmit over the internet, on a live or archived basis, all or a portion of their locally produced programming that aired during the term of the license. It also allows stations the right to use music in content over the Internet where the primary purpose is to promote the station and/or any of its programs.

It is important to note that none of the licenses we currently have allows for downloading of music or the streaming of network or syndicated programming. That permission can only be given by the program suppliers.

   16. What about my station's digital television (DTV) signal -- is that covered by my licenses with the PROs?

BMI's license ended on December 31, 2004 and an interim license is now in effect. We are working with BMI to negotiate a final license that will include digital channel broadcasts. We are uncertain of the final provisions of that license, but stations should be able to broadcast over their digital channels without concern for copyright infringement during this interim period. However, the final license provisions will be retroactive to January 1, 2005 and may include additional retroactive fees for some digital channel performances.

SESAC's license that ended December 31. 2004 required that programs broadcast on the digital signal "predominantly are also broadcast simultaneously over the station's free, over-the-air analog signal". In the arbitration proceeding that concluded in January 2006, the TMLC requested an expansion of these provisions. Although stations should be immune from copyright infringement liability until the arbitrators' decision has been issued, stations may be subject to retroactive fees for some performances broadcast on digital channels and others may have to be separately licensed.

The license currently in effect with ASCAP covers all broadcasts made by stations on their digital frequency (as long as there is no subscription fee for access to these digital broadcasts). There is no extra fee charged nor is there any extra paperwork to be completed by the station.


   17. How can my station get involved with the Television Music License Committee?

Give us a call!!!