In-store music can be a powerful marketing tool. Music Industry Piracy Investigations (MIPI) answers some frequently asked questions about the do's and don'ts of playing tracks in a commercial environment.
Q:I bought a legitimate CD. Can I make copies for use in my retail store?
A:The purchase of a CD only gives you the right to own the physical disc, to play it privately and to pass on the same physical disc to another person. This means that copying the music from a CD (including onto an mp3 player) without the permission of all relevant copyright owners is an infringement of copyright except in very limited circumstances. The Copyright Act allows you to 'format shift' music for personal use. For instance, to copy from CD format to MP3 format in certain limited situations. However, this does not extend to use of the music in a retail store. If you want to copy your legitimate CDs to play as background music in a commercial setting, you must get:
* Permission or a licence from the record company that controls the copyright in the sound recordings (contact the licensing department of the relevant record company) and;
* A license from Australasian Mechanical Copyright Owners Society (AMCOS) for the reproduction of the music. Generally, AMCOS will offer a 'blanket' licence which allows you to be covered for all reproduction of musical and literary works for certain purposes.
Q:Is it illegal for me to download music from the internet and play it in my retail store?A:The basic legal principle is that you cannot copy or distribute music including from the internet without the permission of all relevant copyright owners. There are a number of legitimate download sites in Australia which are listed on the MIPI website under the 'links' tab. If you are unsure of whether a particular website is appropriately licensed, you can contact MIPI. If you legitimately buy music from iTunes or other legal online distributors you should check their terms and conditions to make sure that you are licensed for the relevant purpose, including to use as background music in a retail store.
Q:What about downloading music through file sharing?
A:Unless authorised, the vast bulk of peer-to-peer 'file sharing' is considered illegal copying and transmission of copyright material. This activity hurts sales of music and the livelihoods of people in the business.
Q:What if I download music to use in my retail from a site overseas where the law might be different?
A:Internet activities of this sort typically involve acts of copying, transmission, or distribution in both the 'receiving and sending' countries and the laws of each will apply. Be aware that if you download music files to your computer located in Australia, without the copyright owners' permission, you are committing an infringement of copyright under Australian law.
Q:Do I need any licences to play legitimately purchased music in my retail store?
A: Yes, there are a number of licences that may apply depending on how you use the music. Basically, the owner or operator of the retail store needs a public performance license from the Phonographic Performance Company of Australia (or the relevant copyright owner) to play protected sound recordings and a public performance license from the Australian Performing Rights Association (APRA) to play the musical and literary works. Further, the sound recordings used must be licensed copies.
Q:Can I be fined or jailed for music piracy?
A:Music pirates can be fined up to $60,500 and punished with up to five years imprisonment for each offence. For companies the fines are up to five times as much. Under recent changes to the Copyright Act the police can also issue an on-the-spot fine of $1320 and sieze pirated music.
Rates for Retailers
The Australasian Performing Right Association (APRA) collects and distributes licence fees for the public performance and communication of its members' musical works. Below are the latest annual rates for background music in retail stores, depending on the size of the premises and devises used.
MIPI is an organisation that provides investigative and intellectual property rights enforcement related services to the Australian music industry.