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Running a CrossFit Facility Tips and guidance on how to open and operate a CrossFit gym.

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Old 02-06-2012, 10:06 PM   #1
Rich Sayen
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Music licensing

Does anyone have the experience in knowing any laws on playing music (satellite "xm") at a box? I have a company continually calling us telling us we need to have licensed only music at our place and we need to pay yearly fees for that benefit ! Any help would be appreciated!
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Old 02-07-2012, 05:03 AM   #2
Chris Cooper
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Re: Music licensing

Hi Rich! There's a large court case happening in Canada right now over this very issue. The GloboGym community stands to pay between $3 and $4 per class where they use music as part of the group.
Somewhere in your contract, there likely exists the standard clause relating to 'commercial use.' While you may technically be in violation of that contract, you can simply use internet-based radio services (we've used iTunes, gotRadio.com, and a host of others) to get around it.
It will also be largely unenforceable, especially for smaller, non-chain gyms. If CrossFit were a franchise, there might be implications for us, but the way our contracts currently stand as Affiliates, we're each too small to bother with.
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Old 02-07-2012, 07:35 AM   #3
Sean Dunston
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Re: Music licensing

Pretty good discussion of it here - wfs-

http://www.board.crossfit.com/showthread.php?t=33224
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Old 02-07-2012, 10:32 AM   #4
Matt Holmer
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Re: Music licensing

FYI .... the other post discusses the use of Pandora as a way around the music licensing requirement.

If you go to their terms of use, Pandora is for personal use only (just like all other music). They do have a commercial license available for $25 a month.

http://www.dmx.com/pandora/ (WFS)
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Old 02-07-2012, 12:04 PM   #5
Lincoln Brigham
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Re: Music licensing

As best I can tell, the rough rule of thumb is that if your customers EXPECT music as part of the company's service then you need to pay the license. This is why a garage that plays music for the mechanics on duty doesn't have to pay while a nightclub playing music for their customers does have to pay.

There's also the rule of thumb that says whoever has the more powerful lawyers on their side wins.
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Old 02-07-2012, 03:21 PM   #6
Rich Sayen
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Re: Music licensing

Thanks for the help! I guess simetimes it better to ask for forgiveness then permission !
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Old 02-07-2012, 03:36 PM   #7
Ron Murray
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Re: Music licensing

Quote:
Originally Posted by Lincoln Brigham View Post
As best I can tell, the rough rule of thumb is that if your customers EXPECT music as part of the company's service then you need to pay the license. This is why a garage that plays music for the mechanics on duty doesn't have to pay while a nightclub playing music for their customers does have to pay.

There's also the rule of thumb that says whoever has the more powerful lawyers on their side wins.
It's funny you mention the mechanic/body shop scenario. I have a friend that owns a body shop in the Denver, CO area and about 2 years ago (or there about) he was hit with a lawsuit for having a stereo in the shop which was primarily used for radio but did also play the occasional CD's (depending on whom was a helm).

I currently pay for Spotify premium but after reading the outlines for this service I am pretty sure I'm not in the clear.
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Old 02-07-2012, 05:12 PM   #8
David Wisniewski
 
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Re: Music licensing

You do need a license, otherwise it is copyright infringement. Pandora, the radio, itunes, etc. is for personal use only. That's why companies like Muzak exist. (wfs)
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Old 02-08-2012, 09:43 AM   #9
Lincoln Brigham
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Re: Music licensing

Quote:
Originally Posted by Ron Murray View Post
It's funny you mention the mechanic/body shop scenario. I have a friend that owns a body shop in the Denver, CO area and about 2 years ago (or there about) he was hit with a lawsuit for having a stereo in the shop which was primarily used for radio but did also play the occasional CD's (depending on whom was a helm).
Your buddy may have been the victim of legal bullying. BMI and ASCAP have been accused of using the "throw mud against the wall and see what sticks" tactic. They call or write every business they discover and see if they can GET them to pay, regardless of whether that business is actually in violation. Check to see if your buddy was actually sued or if he just got a form letter.
http://www.law.umaryland.edu/marshal...ts/rs21107.pdf

Look up "homestyle" usage and also the "Sonny Bono Act". Many Crossfit gyms -- but not all -- might be specifically exempt.
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Old 02-08-2012, 01:53 PM   #10
Ron Haskins
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Re: Music licensing

Had our lawyer check into this and it's legit. You must pay for rights to use music in your gym. We have purchased the necessary coverage but can't remember where from and I'm not at the gym right now. Pm me and I'll send you the info on who we used.
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