A blanket license is a type of music license that allows the licensee to use a broad repertoire of copyrighted music without negotiating individual agreements for each song. This licensing model is widely used by businesses, broadcasters, and public venues to legally play copyrighted music, stream music online, or use music in various commercial settings. Understanding what a blanket license is, how it functions, and how it relates to organizations like ASCAP, BMI, SESAC, and PRS is essential for anyone involved in music licensing or music usage in a commercial context.
Background: The Need for Music Licensing
Music copyright law grants creators exclusive rights to their work, including rights to reproduce, distribute, perform, and display their music. When businesses or organizations want to use copyrighted music publicly—such as in a restaurant, radio station, gym, or online streaming—they need to obtain permission from the rights holders. Since there are millions of songs and countless rights holders, negotiating individual licenses for each piece would be impractical. This challenge led to the development of collective licensing models like blanket licenses.
What Is a Blanket License?
A blanket license is an agreement that grants permission to use a large catalog of copyrighted music for a specified period, typically in exchange for a fixed fee. It simplifies the licensing process by covering all songs within a repertoire, eliminating the need to identify and negotiate with each rights holder separately. The licensee can then play, perform, or stream any song within the licensed repertoire without seeking additional permissions for each use.
Usage context: A restaurant may pay for a blanket license to play any music from a collection of thousands of songs, without worrying about licensing each track individually.
Origin of the term: The word “blanket” in this context refers to coverage that is broad and inclusive, much like a blanket covers a large area. It implies comprehensive permission over an entire catalog rather than specific songs.
How it’s used in a sentence: “The cafe obtained a blanket license from ASCAP to legally play music during business hours.”
How Does a Blanket License Work with ASCAP, BMI, SESAC, and PRS?
ASCAP, BMI, SESAC, and PRS for Music are performing rights organizations (PROs) that represent songwriters, composers, and music publishers. They issue blanket licenses to licensees—such as radio stations, TV broadcasters, live venues, and digital streaming services—allowing these entities to perform or play the PROs’ repertoires legally.
Process:
- Application: The licensee applies for a blanket license from the PRO, providing details about their business and intended music usage.
- Negotiation & Payment: The PRO offers a license agreement, including the licensing fee, which is often based on factors like audience size, revenue, or usage type.
- License Granting: Once the license is issued, the licensee can perform or broadcast any song within the PRO’s catalog without additional negotiations.
- Royalty Distribution: The PRO collects licensing fees and distributes royalties to rights holders based on usage data.
For example, a radio station licensed by ASCAP can play any song from ASCAP’s extensive catalog without individually licensing each song, simplifying compliance and legal protection.
Choosing the Right Blanket License
When selecting a blanket license, consider:
- Repertoire Coverage: Does the PRO’s catalog include the music you intend to use?
- Cost: Is the license fee within your budget? Fees are often tiered based on usage or revenue.
- Type of Usage: Does the license cover your specific needs—live performances, broadcasting, online streaming, etc.?
- Legal Compliance: Ensuring the license is valid and covers all necessary rights reduces legal risks.
For instance, a streaming service might need a comprehensive blanket license from multiple PROs to cover all territories and genres it offers.
Common Problems and Misconceptions
Despite their convenience, blanket licenses can sometimes lead to misunderstandings:
- Over-licensing: Some licensees pay for licenses covering more music than they actually use, leading to unnecessary costs.
- Coverage Gaps: Not all PROs represent all rights holders or genres, so a license from one PRO might not cover all music used.
- Misuse of Licenses: Playing music outside the scope of the license (e.g., in a different location or for different purposes) can lead to legal issues.
- Cost Variability: Fees can vary widely based on the licensee’s size, usage, and the PRO’s policies.
For example, a small café might assume a small license is sufficient but later discover that certain performances require additional coverage, especially if they host live bands or special events.
Comparing Blanket Licenses and Other Licensing Models
Other than blanket licenses, licensing models include:
- Per-Use Licenses: Paying for each individual song or performance, which is more cumbersome and often more expensive for frequent usage.
- Mechanical Licenses: For reproducing copyrighted music in recordings, separate from performance licenses.
- Synchronization Licenses: For using music in visual media like movies or commercials.
Blanket licenses are typically preferred for ongoing, broad usage, whereas per-use licenses suit infrequent or specific applications.
Cost of Blanket Licenses
The cost of a blanket license varies depending on several factors:
- Type of Business: Larger venues or broadcasters pay higher fees due to greater usage.
- Scope of Usage: The extent of music use, including the size of the audience or broadcast reach.
- Geographic Coverage: Licenses covering multiple territories or countries cost more.
- PRO Policies: Each PRO sets its own fee structures based on their licensing policies and the value of their repertoires.
For example, a small restaurant might pay a few hundred dollars annually, while a national radio network could pay thousands or tens of thousands of dollars per year.
Is a Blanket License Safe and Legally Valid?
Yes, a properly obtained blanket license from a recognized PRO is legally valid and provides a safe way to comply with copyright law. It ensures that rights holders are compensated for public performances of their works. However, licensees must adhere to the terms—such as usage scope, territory, and duration—to avoid legal issues. Regular audits or reporting may be required, depending on the agreement.
It’s important to note that a blanket license does not cover all music rights, such as mechanical rights or rights for synchronized visuals unless explicitly specified. Therefore, licensees should understand the scope of their license and supplement it if necessary.
Frequently Asked Questions
1. Do I need a separate license for each PRO?
Yes, if you use music represented by multiple PROs, you generally need to obtain blanket licenses from each organization—such as ASCAP, BMI, SESAC, and PRS—to cover all repertoire rights.
2. How do I know if my business needs a blanket license?
If you publicly perform, broadcast, or stream music regularly, and want to avoid legal risks, a blanket license from relevant PROs is usually necessary. Consult with the PROs or legal experts to determine your specific needs.
3. Can I use a blanket license for online streaming?
Yes, many blanket licenses cover online streaming, but you should verify that the license includes digital use rights and covers your streaming platform’s geographic regions.
4. What happens if I use music without a license?
Using copyrighted music without a proper license can lead to legal action, fines, and damages. It’s essential to secure the appropriate licenses before using music publicly or commercially.
5. Are blanket licenses expensive for small businesses?
Typically, small businesses pay modest fees for blanket licenses, but costs vary based on usage scope. Many PROs offer tiered pricing suited for small venues or startups.
In conclusion, a blanket license simplifies the process of legally using copyrighted music across various settings. By understanding how it works with organizations like ASCAP, BMI, SESAC, and PRS, licensees can ensure compliance, support artists, and avoid costly legal issues while enjoying the rich world of music in their business or projects.
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