22 Things Roller Skating Rink Owners Must Know About Music Licensing

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Every year, members pay their music licensing fees to the RSA, which then gets sent to the music licensing organizations. With those payments comes a lot of questions. That's why we're giving a refresher course to members and potential rink owners about the importance of music licensing. 
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Music brings life to your roller rink, creating an atmosphere that keeps skaters coming back. However, understanding the legal responsibilities of using music in your business is crucial. Here’s a comprehensive guide to help you navigate U.S. copyright law for your roller rink.

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1. Music Makes the Experience
Music sets the tone for your roller rink, making it more enjoyable and memorable. It can influence the type of crowd you attract, the energy of your rink, and even the speed of skating. The right music can turn a good skating session into a great one.

2. Who Really Owns the Music?
When you hear a song, you might think it belongs to the performing artist. In reality, unless the artist wrote the song, they don't own it. The ownership typically lies with the composer, songwriter, and music publisher, among many others. They are the ones who created the music and have the legal rights to it and each person might belong to different Performing Rights Organizations (PROs).

3. Understanding Copyrights
A copyright gives the owner exclusive rights to their creation. From the moment a song is written down or recorded, it is protected by copyright law. This means that others cannot use the song without the owner's permission, which is usually obtained through a license.

4. Why Pay to Play?
Paying for music licenses ensures that artists are compensated for their work. Music is a business, and like any other business, creators need to earn a living. Licensing fees support artists and encourage them to continue making music.

5. When Must Businesses Pay?
​Anytime music is played in a public setting, such as a roller rink or during a sporting event, a license is required. This includes live performances, DJ sets, whether the music is played from CDs, a playlist of downloaded music, or any streaming service. The law considers these performances public, even if they happen within your privately owned rink.

6. The Truth About Business Streaming Services
There is a lot of misinformation about business streaming services. Some claim that services like Spotify or Apple Music for business cover public performance licenses. However, this is not true if your business charges an admission fee. These services are intended for personal use only. If you intend to use them in your skating center, you will still need to pay your music licensing fees.

7. What is the Role of Performing Rights Organizations (PROs)
Performing rights organizations (PROs) simplify the licensing process by allowing businesses to obtain licenses for thousands of songs from multiple artists. PROs like BMI, ASCAP, SESAC, and Global Music Rights issue blanket licenses that cover all the music in their catalogs, making it easier for business owners to comply with copyright laws. They act on behalf of songwriters and publishers to issue licenses and collect fees.  By obtaining licenses from these organizations, you ensure that you can legally play a wide range of music in your rink.

8. Where Do Licensing Fees Go?
Licensing fees collected by PROs are distributed to the music creators as royalties. Most of the fees go directly to the artists, with a small portion used for administrative costs. This system ensures that artists are fairly compensated for their work and can continue creating music.

9. Do You Need Multiple Licenses?
Songs often have multiple creators, each possibly represented by different PROs. To play these songs legally, you need licenses from all relevant PROs for each song. Many businesses opt for blanket licenses from all major PROs to cover all potential music usage and to avoid legal complications.

10. The CD and Download Misconception
Purchasing a CD or a digital download gives you the right to play the music privately. This means you can play it at home or in your car, but not in a public setting like your roller rink. For public performances, you need additional licenses.

11. Getting Licenses Made Easy
The RSA partners with PROs to offer discounted rates to members. You can visit the RSA website, download the necessary forms, and pay the fees to ensure your rink is compliant. (If you own more than one rink, you must pay for each rink individually.) This streamlined process makes it easy to obtain the licenses you need.

12. Who’s Responsible?
As the business owner, you are responsible for securing the necessary licenses. If your rink is found to be playing music without a license, you could face significant fines and legal action. It’s important to ensure you have the right permissions to avoid these risks.

13. How Fees Are Determined
Licensing fees vary based on the type of business, the admission charge, the occupancy size of the building, how the music is performed, and how often it is played. Some PROs offer discounts to specific groups who have negotiated lower fees, which is what the RSA has done on behalf of members. For competitive events, there may be separate fees that you need to discuss with the licensing agency.

14. The Consequences of Non-Compliance
Ignoring copyright laws can lead to severe penalties. These can include fines, court costs, and even criminal charges in extreme cases. The fines can be substantial, often enough to put a small business out of business. Compliance is not just a legal requirement but also a way to support the music industry.

15. How to Obtain a License to PROs
The RSA partners with PROs to offer members discounted rates. Visit the RSA website, download the necessary forms, and pay the annual fees to each licensing agency. Every member pays a different rate based on annual admissions revenue or floor size, but the RSA simplifies the process by handling the accounting for the PROs. This saves YOU money and the PROs the time to collect from every member. To make this easier on members, the fees are due at different times during the year so that you’re not required to pay them all at once. 

16. Do PROs Really Enforce U.S. Copyright Laws?
Yes, PROs actively enforce copyright laws. They monitor businesses to ensure compliance and take legal action against those who fail to obtain the necessary licenses. Enforcement can include sending representatives to check on businesses, issuing fines, and pursuing legal proceedings to recover unpaid fees and damages.

17. What Happens During an Audit?
If a PRO suspects that you are playing music without a license, they may conduct an audit. This involves checking your music sources and usage. If they find you are not in compliance, they will issue a notice of infringement, and you may have to pay backdated fees and penalties.

For instance, with Global Music Rights, if you fail to pay your license and you play a song violating the Copyright Act, each song could incur $150,000 in statutory damages. If an auditor is sitting in your rink and hears you play 20 of their songs, that's $3 million dollars in fines alone. You do not want to put yourself at risk.

18. What Are the Types of Music Licenses?

• Public Performance License: Required for playing music in public spaces, including roller rinks. This is the most common license and is issued by PROs.
• Mechanical License: Needed if you are reproducing music, such as making copies of a CD.
• Synchronization License: Required if you are synchronizing music with visual media, like a promotional video for your rink.
• Master Use License: Needed for using a specific recording of a song in a project.

19. What are Some Tips for Staying Compliant?

• Regularly Review Your Licenses: Ensure all your licenses are up-to-date. Licensing terms and fees change every year, so periodic reviews are essential.
• Keep Records: Maintain detailed records of your music licenses and payments. This can be useful if there are ever any disputes or audits.

20. Have Roller Skating Rinks Ever Been Sued by a PRO?
Yes. Several roller skating rinks have faced lawsuits with hefty fines for playing unlicensed music. After receiving cease-and-desist letters from a PRO, they had to negotiate settlements and obtain the correct licenses which cost significantly more due to the backdated fees.

21. Which Music License Do I Need to Pay For?
All of them. One song might have 10 people who worked on its creation, and all 10 are registered to various music licensing organizations, which means you would be required to pay for all of them to play that one song. Also, Supreme Court precedent has been set on the matter.

22. What is the Supreme Court Precedent on Music Licensing?
The Supreme Court of the United States has established several important precedents related to music licensing and copyright law. While the Court has addressed various aspects of copyright law, specific cases that are particularly relevant to music licensing include:
1. ABC v. Aereo (2014)

• Summary: In this case, the Supreme Court ruled against Aereo, a company that allowed users to stream and record over-the-air television broadcasts via the Internet. The Court held that Aereo’s service was a public performance and thus required a license, even though each user had their own individual antenna.
• Relevance to Music Licensing: The decision reinforced the principle that retransmitting copyrighted material to the public, even through individual devices, constitutes a public performance. This is applicable to music licensing, as playing music in public spaces, including through streaming services, requires proper licensing.

2. Eldred v. Ashcroft (2003)

• Summary: This case involved a challenge to the Sonny Bono Copyright Term Extension Act, which extended the duration of copyrights. The Supreme Court upheld the act, thereby affirming Congress's authority to extend copyright terms.
• Relevance to Music Licensing: The ruling impacts the duration for which music remains under copyright, influencing the licensing requirements for businesses wishing to use copyrighted music.

3. Sony Corp. of America v. Universal City Studios, Inc. (1984)

• Summary: Known as the "Betamax case," the Supreme Court ruled that the use of video recording devices for time-shifting TV programs did not constitute copyright infringement.
• Relevance to Music Licensing: While this case primarily dealt with video content, it established important principles about fair use and private versus public performance. However, it emphasized that public performances, like playing music in a commercial setting, require proper licensing.

4. Twentieth Century Music Corp. v. Aiken (1975)

• Summary: The Court decided that a small restaurant owner playing music through a radio was not performing the music publicly and did not need a license. However, the decision was narrowly tailored, focusing on the specific facts of the case.
• Relevance to Music Licensing: The Aiken decision led to amendments in copyright law, specifically Section 110(5) of the Copyright Act, which clarified the scope of the exemption for certain small businesses. This affects the licensing requirements for small businesses versus larger establishments.

5. MGM Studios Inc. v. Grokster, Ltd. (2005)

• Summary: The Supreme Court ruled that companies distributing software that promotes copyright infringement can be held liable for the infringement acts of their users.
• Relevance to Music Licensing: This decision underscored the responsibility of intermediaries and service providers in preventing copyright infringement, relevant to music platforms and services that might facilitate unlicensed use of music.

General Principles from These Cases:

• Public Performance: Playing music in a public space, such as a roller rink, typically constitutes a public performance and requires proper licensing.
• Copyright Duration: Copyrights last for an extended period, often the life of the author plus 70 years, during which licensing is required for public use.
• Intermediary Liability: Platforms and services that facilitate music distribution need to ensure proper licensing to avoid liability.

These cases collectively reinforce the necessity for businesses to comply with music licensing requirements to legally play copyrighted music in public settings.

Conclusion
Understanding and complying with U.S. copyright laws is essential for any roller rink owner. Music is a vital part of the roller skating experience, and proper licensing ensures that you can continue to provide a vibrant, engaging atmosphere without legal issues. By obtaining the necessary licenses from PROs and staying informed about your responsibilities, you support the music industry and protect your business from costly fines and legal action.

Due Dates for Music Licensing with the RSA
Payment forms for each of these (if applicable) are found on the RSA members only portal. Click on Members Only > Music Licensing Payments.

• ASCAP: November 1 Forms are mailed, and you are reminded weekly by RSA Today Newsletter two months prior. Can be paid online by credit card or mail by check.
• Global Music Rights: October 1 Forms are mailed, and you are reminded weekly by RSA Today Newsletter two months prior. Can be paid online by credit card or mail by check.
• BMI: January 30 Forms are mailed with your RSA membership dues invoice, and you are reminded weekly by RSA Today Newsletter two months prior. Due to the complexity of calculations, we cannot create an online payment form for BMI, so this must be paid by check by mail or credit card over the phone.
• SESAC: Must be paid directly to SESAC, but members do get significantly discounted rates, so make sure to have your RSA Member ID handy. Note: We have not used alpha and numeric member ID numbers for more than 10 years, so please make sure you have your accurate member ID that can be found on your membership card that is mailed every year.

Learn More
For further information on each of the licensing agencies, see the following:

• BMI: www.BMI.com
• ASCAP: www.ASCAP.com
• SESAC: www.SESAC.com
• Global Music Rights: www.globalmusicrights.com

Additional Resources

• U.S. Copyright Office: www.copyright.gov
• Council of Better Business Bureaus: www.bbb.org/us/business