Blanket License
A blanket license is an agreement that allows a user (like a radio station or streaming service) to use an entire catalog of copyrighted music for a set fee, rather than clearing each song individually.
Clearing rights for every single song played on a radio station, in a venue, or on a streaming platform would be an administrative nightmare. Blanket licenses solve this problem by providing comprehensive access to a vast repertoire of music. These licenses are typically issued by Performing Rights Organizations (PROs) such as ASCAP, BMI, or SESAC, or by mechanical rights agencies. The licensee pays a flat fee or a percentage of their revenue, and in return, they can legally play any song within the organization's catalog without seeking individual permission from the copyright owners.
The fees collected from blanket licenses are then distributed by the PROs or agencies to the songwriters, composers, and publishers whose music was used. This distribution is based on complex tracking and sampling methods to estimate how often specific songs were played. Blanket licenses are fundamental to the operation of many music-reliant businesses, ensuring that creators are compensated while allowing businesses to operate legally and efficiently.
Imagine a local coffee shop that plays background music all day. Without a blanket license from a PRO, the shop owner would have to contact the publisher of every single song played to negotiate a fee, which is practically impossible. A blanket license simplifies this, ensuring legal compliance and supporting the music ecosystem.
While melabel focuses on direct distribution and management, understanding blanket licenses is crucial for artists tracking their Performance Royalties, which are often generated through these agreements and can be monitored via melabel's Music Analytics.