Royalty and Licensing

Where to Start?

Live365 is pleased to be one of the few streaming providers who can honestly say that we can provide full royalty/licensing coverage for most Internet radio stations who use our service. This means you can feel comfortable and secure knowing that if you opt to choose one of Live365's Royalty/Licensing Included PRO packages you are covered for all SoundExchange, ASCAP, BMI and SESAC Internet broadcasting fees.

As a Live365 Broadcaster, What Do I Need to Know About the Copyrights that Protect the Music I Play? Do I Need to Worry About Licensing?

Every song that you play on your station contains two separate copyrighted works. The first work is called the "musical composition," which consists of the song's music and lyrics. The second work, made while the band played the song in a recording studio or at a concert, is called the "sound recording."

U.S. law requires a Webcaster to obtain permission from the copyright owner of a musical composition before the Webcaster plays the song. To do so, a Webcaster can request a "public performance license" from a copyright owner in exchange for payment of a license fee or royalty. ASCAP, BMI and SESAC are the performing rights organizations that issue those licenses.

Licenses for "sound recordings" are issued and administered by the performing rights organization SoundExchange. (Comprehensive descriptions of the whys and hows of licensing are available below.)

If you are unsure if your broadcast will contain any copyrighted/licensed works, it is best to be safe and cover your broadcast by purchasing a Royalty/Licensing Included PRO package. (Back)

How Do I Know If I Need My Own SoundExchange License?

First, answer the following questions:

Do you have a broadcasting package that is based on a maximum number of simultaneous listeners AND that allows you to opt-out of Live365's in-stream audio advertising, most Live365 branding, and all in-stream Live365 network identification? (Most PRO customers fall into this category). If so, you will have to either license yourself with the Library of Congress' Copyright Office/SoundExchange and submit documentation to us to warrant that you have your own license; OR you can have your SoundExchange royalties paid by Live365 by switching to one of our TLH-based broadcasting packages.
Are you a non-commercial entity or organization? If so, it may be cheaper for you to obtain the Non-Commercial Statutory license. See http://www.soundexchange.com/rates.html for details.
Do you have a large station and wish to make it into a bona fide business? If so, you may be better off licensing yourself under the Small Webcaster Settlement Act. See here for details.

If you answered "yes" to any of the above questions, you should deal directly with SoundExchange and the Library of Congress' Copyright Office to acquire a license for your station. (Back)

How Do I Know If I Need My Own BMI, ASCAP and SESAC Licenses?

First, answer the following questions:

Do you wish to launch your Player Window directly from your Web site (rather than first linking to your station page on Live365 and then launching your Player Window from our Web site)?
Do you wish to earn revenue from your station or Web site (for example by selling audio ads or soliciting donations)?

If you answered "yes" to either of the above questions, you will need to secure "musical composition" licenses from SESAC, ASCAP, and BMI. If your station, your Web site and your Live365 Broadcasting package meet certain criteria, you can apply for these licenses through Live365's Affiliate Licensing Program, which can greatly simplify the license application process and save you money! (Back)

Introducing Live365's Affiliate Licensing Program for ASCAP, BMI and SESAC Licenses

In response to customer requests, Live365 has made special arrangements with our friends at SESAC, BMI and ASCAP to offer discounted versions of their standard Internet licenses to certain Live365 Broadcasters. This enables Live365 to offer eligible customers a "one-stop" service by providing bandwidth, broadcasting tools, and music licensing all in one place! When you purchase broadcasting services from Live365, you can apply for discounted ASCAP, BMI and SESAC licenses (available only to qualified Live365 customers). For your convenience, Live365 will include your license fees on your monthly billing statement.

The primary requirements for obtaining these licenses are:

Live365 must be your exclusive streaming provider. For example, if you run a separate Shoutcast or WindowsMedia stream with any other third party in addition to your Live365 stream, you are not eligible.
You must be based in the United States.

While you can apply for these licenses individually by contacting us, for your convenience, we offer all three licenses in a bundled package at a substantial discount compared to purchasing them separately, for either $38 or $48 per month according to the following criteria:

BMI: Offers two levels of license depending upon your size, including an exclusive Micro-Caster License for small, budget-conscious Webcasters.

BMI's Micro-Caster: If you have a broadcasting package that allows for 25 or fewer simultaneous listeners, and you plan on generating less than $500 in monthly revenue from your station via your Web site, you qualify for our Affiliate BMI Micro-Caster license. The BMI Micro-Caster license accounts for $10 of the $38 bundled package.
BMI's Mini-Caster: If you have a broadcasting package that allows for 500 or fewer simultaneous listeners and you plan on generating less than $1,200 a month in revenue, you qualify for our Affiliate BMI Mini-Caster license. The BMI Mini-Caster license accounts for $20 of the $48 bundled package.

ASCAP: Offers one license. If your Web site will generate fewer than 550,000 sessions in the following 12 months, and you plan on generating less than $1,200 a month in revenue, you qualify for our Affiliate ASCAP license. The ASCAP license accounts for $20 of either bundled package.

SESAC: Offers one license. If your Web site will generate fewer than 550,000 sessions in the following 12 months, and you plan on generating less than $1,200 a month in revenue, you qualify for our Affiliate SESAC license. The SESAC license accounts for $8 of either bundled package.

"Revenue" is fully defined in the short licensing applications that you will need to complete, but, conceptually, it is the money you make from your use of copyrighted music on your broadcast and through your Web site. For instance, income from commercial audio spots run on your station or income from any listener donations will count as revenue. The "litmus test" is to ask yourself: "If my station was no longer available on my Web site, would I still generate this revenue?" (Back)

If I Obtain a SoundExchange or ASCAP/BMI/SESAC Licenses On My Own, What Documentation Does Live365 Require Me to Submit?

Broadcasters who intend to obtain their own SoundExchange or ASCAP/BMI/SESAC licenses must submit sufficient documentation to Live365. The proper Live365 forms to complete, sign and submit can be found here. A copy of all the required notices and agreements with the Copyright Office of the Library of Congress and the relevant Performing Rights Organizations must accompany this form, as outlined in the form. The form and the required documents must be faxed or mailed to Live365:

Live365, Inc.
950 Tower Lane, Suite 400
Foster City, CA 94404
Attn: Licensing

FAX: (650) 345-7497 (Back)

What If I Do Not Intend to Play Any Copyrighted Music?

If you believe that all of the music that you will play is not protected by copyright (for example, you might play certain older music for which the copyright has expired), you will need to certify to Live365 that the music is not copyright-protected. The proper Live365 form to complete, sign and submit can be found here. The completed form must be faxed or mailed to Live365:

Live365, Inc.
950 Tower Lane, Suite 400
Foster City, CA 94404
Attn: Licensing

FAX: (650) 345-7497 (Back)

What If Most of the Music That I Play Is Not Copyrighted?

If you have determined you are not covered by Live365's blanket licenses, you must obtain public performance licenses for the musical composition or sound recording before you play any copyrighted song, even if it's just one song. This is required by law. (Back)

Tell Me More About Copyright and Licensing

It All Starts With a Song

As we said, every song that you play on your station contains two separate copyrighted works. The first work is called the "musical composition" and consists of the song's music and lyrics. The second work, made while the band played the song in a recording studio or at a concert, is called the "sound recording."

The copyright to a musical composition and the copyright to the sound recording can be owned by different people. For example, a songwriter may agree to assign the copyrights to his or her musical compositions to a music publishing company in exchange for an annual salary. It becomes the music publisher's job to promote the song so that a popular artist or band will record it. When the song is broadcast on radio or TV or is Webcast on the Internet, the music publisher and the songwriter are entitled to be paid royalties from the "public performance" of the song.

So, the music publisher, the songwriter and the recording artist can be different from one another. Other times, the music publisher, songwriter and recording artist may be the same person. For example, an artist who writes and performs his or her own songs may decide to act as his or her own music publisher. (Back)

The Public Performance License for Musical Compositions

U.S. law requires a Webcaster to obtain permission from the copyright owner of musical composition before the Webcaster plays a copyrighted song. To do so, a Webcaster can request a "public performance license" from a copyright owner, in exchange for payment of a license fee. But how do Webcasters identify, contact and pay each music publisher and songwriter in advance of using their music? And how do music publishers and songwriters issue licenses to thousands of Webcasters and make sure each Webcaster pays the license fee? This process is called "blanket licensing," and is conducted by Performing Rights Organizations ("P.R.O.s").

Performing Rights Organizations license the right to publicly perform musical compositions. On behalf of the music publishers and songwriters they represent, the organizations offer Webcasters "blanket" licenses that cover not just a song or two, but whole catalogs, which comprise thousands of songs. In the United States, there are three performing rights organizations for musical compositions: ASCAP, BMI and SESAC.

While licenses must be obtained from only those organizations whose music you play, Live365 recommends that Webcasters who need licensing outside of Live365's blanket license obtain licenses from all three Performing Rights Organizations. Each organization represents music of many styles and periods. Further, each year some music publishers and songwriters decide to switch from one organization to another, so it can be difficult to determine which organization represents a particular song. For further information, please visit their respective Web sites: ASCAP, BMI and SESAC. (Back)

The Public Performance License for Sound Recordings

The owner of the copyright in a sound recording owns the exclusive right to publicly perform the recording through a digital transmission, such as over the Internet. Therefore, Webcasters must also obtain a public performance license for each sound recording they play. In the United States, SoundExchange is the Performing Rights Organization that provides public performance licenses for the Webcasting (streaming) of sound recordings. SoundExchange collects license fees and distributes royalties to record labels (the majors, as well as independent and artist-owned labels), the featured recording artist and the backing musicians who contribute to the recordings. Under the Digital Millennium Copyright Act ("DMCA"), Webcasters are entitled to these licenses only if their playlists comply with certain requirements, called the "sound recording complement." For example, songs cannot be available on demand, and no more than four songs by an artist can be streamed on the same station within any three-hour period. Information about SoundExchange is available here.

Public performance license fees for streaming sound recordings vary depending upon the type of Webcaster. For non-commercial stations, the amount is usually a flat fee. For "Small Webcasters" (as defined by the DMCA statute), the fee is a percentage of revenue (subject to a minimum charge). For other commercial Webcasters, the license fee is either based on the number of performances or on the number of aggregated tuning hours (Live365 calls this Total Listening Hours, or TLH), streamed by the Webcaster. Further information is available on SoundExchange's Web site. (Back)

Why Pay License Fees at All?

Because it is the law. Copyright infringement can result in 1) a civil suit for money damages of up to $150,000 per song, 2) criminal penalties, including fines and imprisonment, and 3) personal liability on the part of corporate directors and officers. Moreover, license fees compensate the creators of content, including songwriters and performing artists.

Live365 believes that content creators should be fairly and reasonably compensated for their work. Therefore, if you answered the above questions designed to help you determine whether your station needs its own licensing and determined that your station requires licensing beyond what is provided by Live365, Live365 requires you to submit documentation as proof that you hold the proper licenses. (Back)

More About Live365's Licensing

For Musical Compositions

Live365 has a blanket license that, in many cases, makes it unnecessary for a broadcaster to obtain additional licensing.

However, you must obtain licenses from and must pay license fees to the Performing Rights Organizations if you intend to generate revenue from your station and/or you wish to launch your station directly from your Web site (without first launching your Live365 station page), and you intend to play any type of copyrighted music, including the music that accompanies talk programs and other non-music shows.

Please read and answer these questions to determine whether your station needs its own ASCAP/BMI/SESAC licensing and to ascertain whether you are eligible for the Live365 Affiliate Licensing Program.

If you require them, it is your responsibility to obtain these licenses, either through the Live365 Affiliate Licensing Program, or by contacting ASCAP, BMI and SESAC directly.

For Sound Recordings

Live365 covers sound recording royalties for many of its broadcasters with its statutory license. Your station is covered unless you have a broadcasting package that (1) has a price structure based on a maximum number of simultaneous listeners AND (2) allows you to opt-out of Live365's in-stream audio advertising, most Live365 branding, and all in-stream Live365 network identification.

Please read and answer these questions to determine whether your station requires its own sound recording license through SoundExchange.

If your station does require its own public performance license for sound recordings, you may obtain a license directly from SoundExchange. If you intend to license yourself, you must submit an "Initial Notice of Digital Transmissions of Sound Recordings under Statutory License" along with a $20 application fee to the Copyright Office of the Library of Congress. The form can be found here. The royalty rate you pay will depend on what type of Webcaster you are. You will be responsible for reporting and paying royalties directly to SoundExchange. Do not expect SoundExchange to contact you or invoice you; it is your responsibility to determine the royalty rate that you qualify for, calculate your royalties and pay royalties to SoundExchange.

If you believe that you do not need a public performance license for sound recordings (i.e. if you do not intend to play copyrighted music, or you intend to play only music you wrote, performed and recorded), you will need to warrant this to Live365 and provide a signed affidavit to support your warranty. See above for the form and documentation that is required. (Back)

What If I Am Based Overseas?

You should first contact the Performing Rights Organization in your jurisdiction to inquire about licensing options. Then, contact legal@live365.com should you have further questions. (Back)

OK, I Signed Up for the Program. Now What?

Although you have paid your licensing fees, you are not officially licensed until your license application has been accepted by each of the licensing organizations (BMI, ASCAP and SESAC), and you have received notification that your license is in effect.

When you purchased your license, you should have received an e-mail with two (2) links: one to the ASCAP/SESAC application form, and one to the BMI application form. Please read and fill out each form carefully, then submit them as instructed. When each Performing Rights Organization approves your application, you will receive notification via e-mail that your license from that organization is active. (Back)

What Happens to My Licenses If My Live365 Account Becomes Overdue?

We strongly suggest that broadcasters who are participating in the Live365 Affiliate Licensing Program keep their accounts current. If your Live365 account remains overdue for 30 days, your licenses will be revoked and you will be required to reapply in order to reinstate your licenses. (Back)

Why Do I Need to Provide My Web Site URL When I Purchase Licenses Through the Live365 Affiliate Program?

When you get a set of licenses from ASCAP, BMI and SESAC through the Live365 Affiliate Program, you are actually licensing your Web site, not your station. These licenses allow you to make money from your Web site as a "showcase" for your station. That's why its URL is required. (Back)

I Have Several Live365 Broadcasts. Do I Need to Buy an Affiliate License Package for Each One?

Possibly. As noted above, when you get a set of licenses from ASCAP, BMI and SESAC through the Live365 Affiliate Program, you are actually licensing your Web site, not your station. These licenses allow you to make money from your Web site as a "showcase" for your station.

So, if you have multiple stations launching from one Web site, you only need to purchase one set of licenses, provided that your stations' aggregate revenue, simultaneous listeners and total sessions in a 12 month period do not exceed the thresholds set by your licenses.

For example, if you have one station with 250 simultaneous listeners promoted via your Web site, and a second station with 300 SLs is promoted via the same site, the sum of simultaneous listeners exceeds the threshold allowed by the terms of the BMI license we offer as part of our Affiliate Licensing Program. In that case, your Web site would not qualify for our program, and you would have to go directly to ASCAP, BMI and SESAC for licensing. (Back)

I Have Several Web Sites Promoting My Station. How Do I Know How Many Licenses I'll Need?

If you are planning to use more than one Web site to generate revenue and accept donations, you may need multiple licenses. You will NOT need to uniquely license each Web site if all sites are "mirrors" of each other, containing the same content and having a substantially similar look and feel, as well as if the number of sessions from all of those site(s) does not exceed 550,000 in a twelve month period, the maximum allowed by ASCAP and SESAC.

Along the same lines, you will not need to separately license each Web site's URL if you have one primary destination site and all your other URLs are redirects to your main site. (Back)

Why Does Live365 Recommend That I Create a New Username Like nameofyourbroadcast_license Before Signing Up for the Live365 Affiliate Licensing Program?

We recommend that you actually purchase your license package under a username other than your broadcast username. It's really a way for us to reinforce that your licenses are not attached to your station; they are attached to your Web site. When you sign up for the Live365 Affiliate Licensing Program, you are licensing your Web site. You are not licensing your station. (Back)

What Happens If My Station Grows and I No Longer Meet the Qualifications of My Licenses?

That would be awesome! We love it when our stations grow. In the event your station grows so that it is no longer covered by your existing license, we will work directly with our friends at SESAC, BMI and ASCAP to facilitate a transfer of your licenses. You will only have to pay an adjusted fee based on how much you have exceeded the thresholds allowed by your Live365 Affiliate Licenses. (Back)