Strategies for Music on Hold Legal Compliance and Licensing in Australia

Introduction

Music on hold (MoH) is a valuable tool used by businesses to create a pleasant customer experience during wait times. It can provide entertainment, reinforce branding, and reduce perceived wait times. However, selecting the right music or audio source, involves more than just aesthetics—there are legal considerations to be aware of, particularly in Australia. This article explores the benefits of music on hold, the barriers to using certain songs and radio stations, and how businesses can navigate licensing requirements.

Benefits of Music on Hold

1. Enhanced Customer Experience:
   1. MoH helps keep callers engaged and reduces frustration during wait times.
   2. It can create a professional image and show customers that their call is important.
2. Brand Reinforcement:
   1. Custom audio tracks can be used to reflect the brand’s tone and messaging.
   2. Businesses can include marketing messages, such as promotions and service announcements.
3. Perception of Shorter Wait Times:
   1. Studies have shown that music can make waiting feel shorter.
   2. The right audio reduces the likelihood of hang-ups and lost business.

Legal Barriers to Using Music on Hold in Australia

1. Copyright Law and Licensing

Music is protected by copyright laws in Australia under the Copyright Act 1968. When using commercially available music, businesses must pay royalties to the rights holders (including composers, lyricists, and performers). These royalties are managed by organisations such as:

APRA AMCOS (Australasian Performing Right Association and Australasian Mechanical Copyright Owners Society): Handles licensing for the public performance and communication of music.

PPCA (Phonographic Performance Company of Australia): Covers the rights related to recorded music and performers.

If a business plays copyrighted songs as music on hold, it must secure the appropriate licenses from these organizations.

2. Restrictions on Radio Stations as MoH

Businesses may consider using live radio broadcasts for music on hold as a cost-saving measure. However, this practice can lead to several legal and practical issues:

• Copyright Infringement: Broadcasting a radio station over a phone system still requires a license, as it involves the redistribution of copyrighted material.
• Content Control: Radio stations include advertisements, competitor promotions, and potentially inappropriate content that cannot be controlled by the business.
• Licensing Complexity: Additional licenses may be required depending on the content being broadcast.

3. Risks of Unlicensed Music Use

Using music without the appropriate licenses can result in significant fines and reputation damage. The fines for copyright infringement in Australia can be substantial and may include penalties for each instance of infringement.

Alternatives to Commercial Songs and Radio Stations

To avoid the complexities of licensing commercial music, businesses can consider the following alternatives:

1. Royalty-Free Music:
   1. Royalty-free tracks can be purchased for a one-time fee and used without recurring payments.
   2. There are many high-quality libraries offering diverse music genres suitable for MOH.
2. Custom-Branded Audio:
   1. Commissioning original music ensures that the audio content is exclusive and free from licensing concerns.
   2. Custom tracks can incorporate brand slogans, voiceovers, and tailored messages.
3. Subscription Services:
   1. Some services offer pre-licensed music specifically for MOH, which includes legal coverage for all necessary licenses.

Conclusion

Music on hold is an important part of customer communication, but it requires careful consideration of copyright laws and licensing requirements. In Australia, the use of popular music or radio broadcasts can pose legal challenges due to the need for performance rights and broadcasting permissions. By choosing royalty-free music, custom audio tracks, or licensed subscription serv