BMI Unveils Pact for Use of Music in the Workplace

Broadcast Music Inc. on Monday unveiled what it called the first performance agreement to compensate songwriters and composers when their music is used by corporations, ranging from background music to sales presentations and even company-sponsored aerobics classes.

The agreement follows a survey of 7,500 companies by BMI, the performing rights organization, in which the companies showed that they are increasingly using music in the workplace.

That survey also indicated that companies want to simplify the licensing procedures, BMI said.

Under the agreement, companies would pay one annual fee based on the number of employees, cutting the paperwork required.

Previously, companies had to fill out three or four agreements because there was no single agreement.

Under the U.S. copyright laws, songwriters, composers and holders of copyrights are to be compensated when their music is used in public places.

The agreement only covers BMI-licensed music.

It would apply to a wide-ranging use of music in the workplace, including television and radio programming received by companies at work sites and even music played when people are put on hold on the telephones.

Companies that are BMI licensees include American Express, IBM, Microsoft and Apple Computer.

Under the agreement, companies using the performance agreement will be allowed to choose their favorite hits from BMI’s catalogue of rock, country, classical and other forms of music.