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Do you need to pay a licence fee if you play music in your spa?

With most spas and salons now using streaming services for their music in their spas, we have forgotten that we will have to pay licensing fees when streaming it in public areas
such as your spa, salon, showroom, or office.

Here is the break down of how it works.
You will need to pay two licences:

1. SAMPRA (South African Music Performance Rights Association)

Function: SAMPRA administers and collects public performance rights for sound recordings. This means they collect fees from businesses that play recorded music in public, such as restaurants, and distribute these fees to the artists and record companies.

Scope: Focuses on sound recordings and music videos. When you play a song from a CD, radio, or digital file in a public space, SAMPRA ensures that the performing
artist and record label are compensated.

2. SAMRO (South African Music Rights Organization)

Function: SAMRO manages the performance rights of composers, authors, and
publishers. This includes the rights to musical works (lyrics and compositions). They collect royalties whenever a musical work is performed in public, broadcasted, or reproduced.

Scope: Deals with the underlying musical compositions and lyrics. When you play any version of a song, SAMRO ensures that the songwriter and publisher are compensated.

Further clarification:

Differences Between SAMPRA and SAMRO

SAMPRA: Collects royalties for the public performance of recorded music (the actual sound recording).
SAMRO: Collects royalties for the public performance of musical works (the composition and lyrics).

Legal Obligation to Pay Both

Yes, you are legally bound to pay both organizations if you play music in a public space like a restaurant or a spa. This is because two separate rights are involved: The right to the recording (handled by SAMPRA) and the right to the composition and lyrics (handled by SAMRO).

Consequences of Not Paying

Legal Action: Both organizations can take legal action against businesses that do not comply, which can result in fines and penalties.
Reputational Damage: Non-compliance can damage the reputation of your business, especially in industries that heavily rely on ambiance and customer satisfaction, such as the restaurant and spa sector.

Why You Need to Pay Even When Subscribing to Music Streaming Platforms

Music Streaming Platforms: Services like Spotify, Apple Music, and others pay royalties for personal and private use of music. This license does not cover public performance rights.
Public Performance: Playing music in a restaurant is considered a public performance, which requires separate licensing. The fees collected by SAMPRA and SAMRO are specifically for the public use of music, ensuring that all parties involved in the creation and production of the music are compensated fairly.

Difference Between Streaming Music at Home vs. in a Spa or Salon

Private Use at Home: When you stream music at home, it's considered personal and private use. Streaming services have already paid for the rights to allow this type of use.
Public Use in a Spa or Salon: Streaming music in a restaurant is a public performance. Even though you are using a streaming service, the public nature of the performance requires additional licensing to ensure that creators are compensated for this broader use of their work.

Summary:

SAMPRA and SAMRO are crucial for protecting the rights of musicians and songwriters, ensuring they receive fair compensation when their work is used publicly.

Legal Compliance: It’s essential to comply with both to avoid legal issues and support the music industry.

Public vs. Private Use: Recognize the difference between personal use and public performance to understand the need for these licenses.

For more information, please refer to the following websites:
www.sampra.org.za
www.samro.org.za

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