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The Legal Guidelines Governing Music On Hold
The most significant advantage of telephone on hold music is it lowers the call desertion rate. This is important because, in accordance with a recent CNN survey, about 35% of phone callers who drop their calls usually do not call back. Music on hold prevents boredom and also the voice-overs such as 'your call is very important to us' and 'somebody will be with you shortly' keep callers on the calls. Market research by Cellular Marketing Magazine shows that 90% of phone callers prefer on hold messages to silence and a market research by Telemarketing Magazine shows that 25% to 40% of callers purchase goods or services based on the information they heard while holding. This means including a campaign of your company and its products/services and together with a call to action will lead to greater ROI (return on investment).
There are lots of sources of music for hold. These include off-the-shelf commercial CDs, custom-designed MOH (with or without voice-overs), stock MOH CDs (with or without voice-overs), online on hold, and radio. All the music could be played by a music on hold player. It is therefore, important that you obtain a music on hold player that accommodates all the music sources. It is essential that you know the legal guidelines governing these music sources to be able to choose the most appropriate source.
The only sources of music for hold that you can play with no fear of legal action are custom-designed MOH since you could select music which is not copyrighted and stock MOH CDs since these CDs are designed for MOH and they therefore feature music that has already been licensed or that is not protected by the laws of copyright. You have to pay if the telephone on hold music is coming from the radio as even radio stations have to pay licenses themselves and they also do not have re-broadcasting rights. With commercial CDs, only play the music if the users had gotten permission from the song's title copyright owner (i.e if the song is not in the 'public domain') and from the song's mechanical copyright owner. There are features which allow your music on hold player to select, download, and play music which doesn't infringe on copyright laws when playing online on hold music. Therefore, it is, important that you look at the features of your music on hold player before you make a purchase.
You could get classical telephone on hold music as most classical music does not require licenses and you could use royalty free music that is open to license online, or via your on-hold production company. If you want to get your music from radio, you could also get your music from subscription music sources such as Muzak and the likes of Music Choice if you have cable TV service. Licenses are offered by BMI, AMS Music, and ASCAP, that are the U.S representatives for music copyright owners. These are also the enforcement agencies. Currently, the fine for playing radio music on hold is $1,500 if you get an out of court settlement. Usually, copyright infringement fines can range from $500 to $150,000.
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