Contributed by CAI Member Task Force
Many community association leaders are unaware that most music and movies are protected by copyright. Use of copyrighted work without a license constitutes infringement regardless of whether the user has knowledge that the work is copyrighted or didn’t intend to infringe on the work. Statutory damages can range from $750 to $30,000. The court may award damages up to $150,000 if willful infringement is found.
If a community association publicly plays music or a movie at an event, it must first obtain a license unless an exception applies. Licenses are commonly obtained from performance rights organizations.
FREQUENTLY ASKED QUESTIONS
Is a license required if an association wants to play Spotify in a common area and has paid for Spotify? Yes. Spotify requires users intending to use an account on behalf of an organization to create a “brand” account. This does not excuse the need for a license if the playlist is shared publicly. More information can be found in Spotify’s end user agreement. Apple Music currently does not offer a similar account option. Please check the user agreement for other services.
If a resident is renting the clubhouse and hires a DJ or band or broadcasts a Spotify or Apple Music playlist, does the community association need a license? Yes. The community association is ultimately responsible for ensuring copyright licenses are obtained. This is true regardless of who provides the DJ, band, or playlist. Best practice may be to contract with the DJ or band and require they obtain all necessary licenses to play the music and agree to indemnify and hold the community association harmless from copyright infringement claims.
If a community association books a band, performer, or DJ and has a contract directly with them, is a license needed to host a free community concert? If the performance constitutes a “public performance,” the community association is generally required to ensure necessary licenses are obtained. This is true regardless of the contractual arrangement with the band or performer. Requiring the band or performer to obtain the license will not protect the association from liability. Indemnification provisions in contractual agreements with performers may help to mitigate liability but likely will not insulate the association from being named as a defendant in the case of clear copyright violations.
If a community association has a contract with a day camp provider to use their clubhouse and they show movies to the campers, who procures the license? To avoid potential liability, the association should obtain a license from a licensing entity. The association also could contractually shift the costs associated with the license by agreement with the camp. However, the community association is ultimately responsible for ensuring compliance.
Does a community association need a license to provide free outdoor movies on a large (association-owned) screen, renting the movies from Swank Motion Pictures? Swank Motion Pictures claims that movies rented from them come licensed to be shown publicly. Additionally, the Motion Picture Licensing Corp. offers an umbrella license, which allows movies and television shows to be shown in common areas.
Does a community association need a license to play radio-broadcast music? What are the range of fees for licenses? A radio broadcast is a performance. Unless an exception applies, a license is needed to play radio publicly. Limited case law suggests clubhouses and pools qualify as public places regardless of whether a fee is charged for use. License fees depend on the size of the community, the facility or venue, and the amount of copyrighted material used. Fees for an annual license generally range from several hundred dollars to several thousand. Licenses must be renewed annually. Many community managers have reported that fees are negotiable.
>>Read more information on music and movie licensing information and resources in CAI’s Music and Movie Licensing Guidance Document.
The CAI task force that helped develop the guidance document included Lisa Cox, CMCA, AMS, PCAM, Scott Eriksen, Esq., David Ludwig, Esq. J. David Ramsey, Esq., Chas Ryan, Esq., and Ani Shrauger. Lisa Cox is community manager at Sienna Plantation Associations in Missouri City, Texas. Scott Eriksen is with Perkins & Anctil in Westford, Mass. David Ludwig is with Dunlap Bennet & Ludwig in Leesburg, Va. J. David Ramsey is with Becker Lawyers, in Morristown, NJ. Chas Ryan is with Franklin G. Pilicy in Watertown, Conn. Ani Shrauger is events and recreation director at South Riding Proprietary, in South Riding, Va.
>>This article was originally published in Community Manager July/August 2025.
Note: This article is for informational purposes only and not for the purpose of providing legal advice. For a clear understanding of your rights and obligations, consult with a licensed attorney. CAI cannot endorse music and movie licensing entities or ensure that an association has satisfied its legal obligations by using one.
