Issue link: http://winesandvines.uberflip.com/i/619725
144 WINES&VINES January 2016 MARKETING Keep Winery Music in Harmony Licensing advice for wineries that play recorded or live music By Jane Firstenfeld A s if wineries don't face sufficient regu- latory issues—TTB, ABC and OSHA are acronyms that spring to mind, not to mention direct shipping— many winery owners are not aware that even the recorded music that enlivens their tasting rooms also comes with a cost. While wineries of every size likely have an in-house compli- ance specialist or employ consultants, few if any have help to steer them through the com- plexities of music licensing. WineAmerica (WA), the Washington, D.C.- based organization that lobbies for wineries across the continent, alerted members in Oc- tober 2015 of its effort to help provide simpler, more transparent music licensing regulations. WA has allied with the MIC Coalition, "a multi- industry group dedicated to protecting the music economy." "Music is integral in preserving the ambi- ance of the winery tour and tasting experi- ence," said Caroline Shaw, WA chair and executive vice president of Sonoma County's Jackson Family Wines. "Our members need policies that are understandable and transpar- ent so they can book local singers and song- writers, stream Internet radio and remain an attractive place to enjoy a local wine." The music licensing guidelines released to WA members state, "Currently there is discus- sion on Capitol Hill regarding music licensing modernization. WA is monitoring these.…We expect at some point legislation will be pro- posed to alleviate the problems...at which time we will encourage our members to contact their senators and representatives. Until a bill is passed, wineries are encouraged to seek the exemptions outlined in the current law or pay the licensing fees." The document explains that since music is copyrighted and licensed, the purchase price of audio files and CDs covers only personal use. "Public performance" outside a normal circle of family and friends requires permission from the copyright owner. As you may recall, "Happy Birthday to You" was only recently released into the public do- main: Virtually every tune you might consider playing in your tasting room remains under copyright through one of the Performing Rights Organizations (PRO), which represent song- writers, composers and music publishers. In the U.S., ASCAP is by far the dominant PRO, followed by BMI and SESAC. It is not currently possible to pay a single PRO: Each has legal grounds to collect separate fees. The PROs collect royalties from their li- censes and pay royalties back to the artists. "A music license provides you with the legal au- thorization you need to play music. A licensing agreement protects your business from the penalties involved in copyright infringement," according to the WA notice. "A winery is liable for royalties if: • The winery hosts live music or • Plays CD or Internet/satellite (consumer) radio inside or outside the winery." Separate concert licenses also are required for ticketed events staged outside the bar/ restaurant/tasting room. "Damages can start at $750 and can go up to $35,000 per song—or KEY POINTS Playing recorded or live music in a commercial venue requires some sort of payment to licensing organizations and the artists they represent. With three organizations licensing music, the legalities are complex. Once you're on these groups' radars, they will not ignore you. For very small locations, the "home-style" exemption may apply. Otherwise, licensers cannot negotiate prices. Current regulations were established in the 1950s. WineAmerica and the MIC Coalition are working for changes to modernize and simplify these rules. Wynona Judd performs with The Big Noise on Nov. 6 at Long Meadow Ranch in St. Helena, Calif., during the 2015 Live in the Vineyard Festival. STEVE JENNINGS