New technologies exist today that were not available in the past, including music listening apps, music listening hardware, digital assistants, etc. that make music usage infringements much more easily detectable by creators, publishers and tracking services than in past years. This has led to a surge of infringement claims in recent years.
Businesses that fail to obtain a blanket performance license in advance of music being played on their premises, websites, digital properties, or at their events, are infringing on Copyright Law and exposing themselves to statutory damages per the U.S. Copyright Act (17 U.S.C. § 501(a)) of up $150,000 per song played, plus payment of the copyright holder's attorney fees. This can quickly lead to millions of dollars of financial exposure.
Additionally, due to the materiality of the financial penalties related to violating U.S. Copyright Law, the failure to properly license music is often an event that requires disclosure by a business to its financial statement auditors. This can lead to a company losing its unqualified audit opinion status, which can trigger a host of unfavorable events with lenders and various other company stakeholders.
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