How to pay Royalties for a Radio Station

Radio stations give money to licensing organizations to pay music writers and music publishers royalties for songs played. Without royalty payments, writers and publishers may simply find another line of work and leave radio listeners without new music to listen to. New radio broadcasters or anyone who's thinking of working for a radio station can learn how by following these steps.

Difficulty: Moderate

Instructions

1. Learn about performance licenses, sound recording licenses, license fees and copyright laws by searching radio licensing organization websites like Broadcast Music, Inc. (BMI) and the American Society of Composers (ASCAP).

2. Determine the radio station's budget to pay the licensing organizations. Both BMI and ASCAP have minimum fees based on the size of the station.

3. Contact BMI or ASCAP by phone, email or log onto BMI's online licensing account center page or ASCAP's Internet music license agreement page on the organization's websites to obtain a performance license. File a notice of use of sound recording with the United States Copyright Office under statutory license.

4. Keep a record of how much money to pay in licensing fees. Payments are required every quarter on average.

5. Deposit all money collected from the radio's station advertisement sales into a bank account. Discern how much to be paid to the licensing organizations.

6. Give the money set aside for licensing fees to the licensing organizations.

7. Record the amount of licensing fees paid by the radio station to the licensing organizations Ask the licensing organizations to send the radio station an invoice of royalty payments.

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Resources

• Visit BMI
• Visit ASCAP
• Get a license for the sound recordings at Sound Exchange