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Business to Business music

 
Business to Business
CD offices

The Music Services (Business to Business) Agreement commenced on 1st January 2008, and replaces the SG5 Production of Background Music Agreement, which expired on 31st December 2007.

The main changes to the licensing arrangements are the move towards licensing both the mechanical and performance rights required under one blanket scheme, as well as revised terms relating to online and satellite delivery of services.

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How to obtain clearance for the use of music in public locations as background music.

What is name of the scheme?

Music Services (Business to Business) scheme

 

What does the scheme allow you to do?

The Music Services (B2B) scheme allows you to supply music services to a company (directly or through a distributor) to locations such as retail shops, restaurants, public houses, commercial businesses, aeroplanes, pubs and hotel rooms. The supply of music services to the company (‘the client’) is solely for the purposes of playing to members of the public at the clients’ premises by means of any physical or digital media. 

This scheme does not cover the public performance of music by the client at their premises. A separate licence is required (by the client) from the Performing Right Society (‘PRS’).

The MS (B2B) scheme offers a generic framework for companies supplying audio, music video and karaoke content for playing to members of the public.

 

What are the rights and formats covered under the agreement?

Rights:

The MS (B2B) Scheme covers the MCPS mechanical reproduction right and the PRS communication to the public right as follows:

a. The creation of a digital database of audio-only, music video tracks or karaoke tracks to source for supplying the service;
b. The transmission of the music via electronic means to end customers in the UK only;
c. The transmission of the music via satellite (if uplinked from the UK) to end customers in the EEA; and
d. The creation of copies at the client end on hard disk when tracks are delivered to a client site for local storage or streaming via electronic means or satellite in the UK only.

NB: The MS (B2B) Scheme does not include the right to play music in any venue. A Public Performance licence can be obtained separately from the PRS.

 

Formats

Physical delivery methods: All physical formats (such as, tape, compact disc, DVD, CD-ROM, portable hard drive, laser disc) used for physical distribution of content to users.

Electronic delivery methods: any distribution of data in an electronic form, wire, wireless, public and private communication networks, internet and satellite. Please refer to the FAQ for information pertaining to the licensable rights with regards to satellite and online distribution.

 

How do you apply to join the scheme?

You must complete the Music Services (B2B) agreement  and application form which details the terms and conditions. Once you have read, agreed, signed and returned this agreement, we will counter sign and return a copy to you with an acceptance letter along with an invoice for the advance of £1175 (£1000+VAT).

 

Once admitted onto the scheme, do you have to apply for individual product clearances?

No.

 

How much do you pay? 

 

 

Physical Delivery  

Online / Satellite Delivery  

Background

Service

Interactive

Service

Karaoke

Service

Background

Service

Interactive

Service

Karaoke

Service

Percentage

of

Applicable

Revenue

6.0%

6.0%

9.5%

7.0%

8.0%

10.5%

Minimum per

site per

month

£2.00

£2.50

£2.50

£2.50

£3.50

£3.50

 

 

How does the reporting and payment process work?

Reporting forms must be sent to us within 30 days of the end of each calendar quarter

We will then invoice the licensee who must pay within 15 days of receipt of the resultant invoice

In addition, a music usage reporting form must be sent to us within 2 months of the end of each calendar quarter.

 

What does the scheme exclude?

The use of unauthorised arrangements, adaptations, parodies, burlesques and Dramatico-musical works; derogatory uses; games are excluded.

 

What are the main restrictions of the scheme?

a. Advertising is restricted to banner style unsynchronised text and images or audio sound bites distinctly separated from the music content. A separate licence must be obtained where the reproduction of music is in the advertisement itself.

b. Electronic delivery is restricted to the UK only and a separate PRS only clearance is also required.

c. The scheme does not permit you to broadcast without the service being encrypted specifically for the use of your client.

d. If you are supplying your music service to outside of the UK please refer to the FAQs for more information on territories for which we can offer a licence.

 

Need assistance

Contact us by email or on T: 020 8378 7500

 

Further Information

View the full terms and conditions for this scheme

View the FAQs for this scheme

Product Licensing FAQs

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