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DMCA Radio Licensing Overview

In the United States, the Digital Millennium Copyright Act (DMCA) simplifies radio licensing. By agreeing to follow a set of operational rules and to pay pre-determined royalty rates, “non-interactive” services can easily acquire the necessary blanket licenses. This process is simpler than negotiating directly with the rightsholders, however MassiveMusic still recommends that you hire an attorney or consultant to make sure you are properly adhering to the DMCA.

Outside of the US, radio services can be implemented in coordination with the collection societies in most countries. The MassiveMusic catalogue contains locally relevant music around the world, and we can help you navigate the international licensing processes.


Licensing Organisations

DMCA-compliant radio is primarily overseen by SoundExchange, an organisation that administers sound recording licenses and pays out royalties to labels and artists. You will need to submit a Notice of Intent to the U.S. Copyright Office, elect your classification for payment directly at SoundExchange and provide a copy of your records to MassiveMusic.

The public performance licenses are administered by the Performance Rights Organizations (PROs): ASCAP, BMI and SESAC. MassiveMusic can assist you with acquiring these licenses; if you obtain them directly you will need to provide copies to MassiveMusic (redacted is OK).

Licensing Process

The first step is to file a Notice of Use of Sound Recordings Under Statutory License with the U.S. Copyright Office and pay the filing fee. Next you must determine your SoundExchange service provider classification and file the appropriate Statement of Account (SOA). Based on a number of factors, such as your revenue and listening usage, your classification will determine the royalty rates you pay and the rules your service must follow. You can read more about this process here; MassiveMusic may be able to assist with these steps.

You will also need to acquire licenses from the PROs, which MassiveMusic may be able to assist with. Once SoundExchange has accepted your SOA and you have obtained the necessary public performance licenses, you are legally permitted to begin streaming.

MassiveMusic must also perform one last step on your behalf. We will contact all our labels and suppliers and seek their permission to allow you access to their content via our API. Legally your licenses permit you to stream almost any recordings you want. However our agreements with the labels grant them the right to approve our clients on a technical and operational basis.

Generally the labels will not withhold approval so long as you can demonstrate that:

1. your service is DMCA-compliant
2. you can meet all reporting requirements, 
3. your site does not promote any objectionable brands or activities, and 
4. you offer sufficient up-sell opportunities to listeners (such as links to purchase downloads).

If a label does not approve your service, we can tell you why so that you have the opportunity to address the issue.

Playback Rules

Sections 106, 112 and 114 of the Copyright Act detail exactly what is and isn’t permissible under statutory digital radio licenses. You have several options to enforce these rules. If you use MassiveMusic’s Playlist Tool to curate your stations, we can ensure playback complies with the DMCA. Or you can build your own features to enforce rules. Some-- but not all-- of the requirements are:

  • Tracks may not be played “on-demand”
  • No more than three songs from one album per hour
  • No more than two songs from one album played consecutively
  • No more than four songs from a compilation per hour
  • No more than three songs from a compilation played consecutively
  • No more than four songs by the same artist per hour
  • No more than six forward skips per hour and no rewinding
  • Tracks cannot be cached locally for offline listening
  • The service is not allowed to publish advance program guides or use other means to pre-announce an order of songs within a playlist or when particular sound recordings will be played
  • A user may not listen to any playlists that he or she creates
  • Continuous looped programs and playlists may not be shorter than three hours long
  • An archived program must be at least five-hours long and cannot be made available for more than two weeks

If you want your service to have functionality beyond what these rules permit (such as on-demand streams or jukebox plays), you will need direct licenses with the labels, publishers and PROs. MassiveMusic can assist you in acquiring these.

Royalties

SoundExchange and the PROs have different methods of calculating rates depending on your business model. You can read about SoundExchange rates here, and we are happy to talk with you about the PRO rates. You will be responsible for paying all royalties, so it’s important that you understand the calculations and your obligations.

These organizations also require regular reporting so that they can pay out their rightsholders. SoundExchange has a specified format. The PROs’ reporting requirements will be addressed during the licensing process. Finally, some labels may require enhanced reporting. MassiveMusic can help produce any reports you need.

Updated 5 months ago