A Guide to Music Licensing for Business Owners

Understanding music licensing for business is crucial for avoiding copyright penalties while enhancing customer experience. These days, it feels like playing music in public places is almost a necessity to maintain customer satisfaction, leading many business owners to ask, “Do I need a license to play music in my business?” 

Luckily, obtaining a legal music license for your business is straightforward if you know where to look. If you’re a business owner, keep reading to learn everything you need to know about music licensing laws.

Can You Play Music in Your Business Without a License?

According to music licensing laws, you must obtain a music license if you perform, use or play music in your business or organization. Business owners can only play background music or perform copyrighted music if they follow laws on playing music in the workplace and the  relevant copyright holder (those who own the music) gives express permission.

Why We Play Music in Public Places

Business owners, small and large, recognize the impact of background music. Music can entertain, set the mood and create a unique atmosphere for guests. Typical examples of playing music in public places include:

• Background ambiance in cafes and restaurants to set a certain mood.
• Upbeat music at the start of a meeting or event to motivate and excite attendees.
• Hold music for business phone lines.
• Energetic and exciting music in gyms to provide energy to customers.
• Relaxing music in spas or massage clinics to relax clients.
• Modern music in retail stores to create hip shopping environments.

Although music offers many benefits, you can’t reap those rewards without proper music licensing for business.

How to Legally Play Music in Your Business

If you’re wondering how to legally play music in your business, there are a few key steps you must follow to ensure you’re compliant with music copyright laws:

Step 1: Determine if Your Business Needs a License

If your business plays music in any public space, whether it’s through speakers, live performances, or even as hold music, you will likely need a commercial music license. This applies to restaurants, retail stores, gyms, offices, and any other establishment where music is played for public consumption.

Step 2: Choose a Licensing Option

There are two main ways to legally play music in your business:

• Obtain a License from PROs: Performing Rights Organizations (PROs) like ASCAP, BMI, GMR, and SESAC collect fees for public performances of music and distribute them to songwriters and publishers. You will need to apply to one or more PROs and pay the associated fees to legally play music in your business.
• Use a Music Streaming Service for Business: Platforms like SiriusXM for Business handle all the required music licensing for you. When you subscribe, you’re covered under their agreements with all the major PROs, so you don’t have to worry about obtaining separate licenses.

Step 3: Understand the Penalties for Non-Compliance

Playing music without the proper license can result in fines for each violation. Ensuring you have the right license or subscribing to a compliant service protects your business from these penalties.

Step 4: Maintain Your License

Music licenses are typically valid for one year, so be sure to renew annually to stay compliant. If you use a service like SiriusXM for Business, they’ll handle this process for you.

How Music Licensing for Business Works

A commercial music license exists to allow businesses to legally play music in public spaces.
 

1. Ownership of Music:
   • Just like movies, every song is owned by its creator—the artist or music publisher. Businesses do not automatically have the right to play music publicly, even if they own a copy of the song.
2. The Need for a License:
   • Similar to how a movie theater needs a license to show films, businesses must purchase a license to play music. This license allows businesses to legally use music to enhance their environment and keep customers engaged.
3. Music Licensing Fees:
   • The fees businesses pay for a music license are collected and distributed to the artists and music publishers, much like movie royalties are paid to film studios.
4. Consequences of Not Having a License:
   • Playing music without the proper license can result in fines ranging from $750 to $150,000 per infraction. This applies to all types of businesses, from cafes to retail stores, making it essential to secure the correct licenses.
      
     This guide to music infringement notices offers details for businesses.

Can a Business Use Streaming Services Like Spotify or Apple Music?

Even if a business owner has a paid membership to streaming services like Spotify or Apple Music or has legally purchased music, they cannot play it in their business without a proper license. According to music copyright laws, purchased or streamed music is still owned by the copyright holder and licensed only for personal use. When played in a business for commercial purposes, a commercial music license is required to compensate the artists and music publishers.

What Music Can a Business Play Without a License?

There are two broad categories of music that can be performed legally without the need to obtain a public performance license to play music in a business from a PRO:

1. Music that holds no copyright. This includes public domain music and music available under a CC0 (No Rights Reserved) music license. Typically, public domain music is music originally copyrighted prior to and including 1922.
2. Music created by a musician or composer who is not affiliated with any PRO.

With music copyright laws in mind, you might be asking, how can I legally play music in my business? Here’s what you need to know.

What Music Licenses Do You Need?

There are four organizations that collect and enforce music licensing for business. ASCAP, BMI, GMR, and SESAC require business owners to obtain a license to stream copyrighted music if iPods, CDs, DVDs, streamed music or performed music is played live.

These four companies are performing rights organizations (PROs) listed by name in U.S. copyright law to be music licensing intermediaries. Each PRO represents different songwriters and publishers, collecting licensing fees for public performances and distributing them to the artists and publishers.

How to Get a Music License for Your Business

Here’s how to legally play music in your business:

1. Manually Obtain a Commercial Music License from PROs:
   Follow these steps to secure a music license directly from PROs:
   • Identify the PROs: Figure out which PROs—ASCAP, BMI, GMR, SESAC—represent the music you plan to play. You may need licenses from multiple organizations depending on your music choices.
   • Apply Online: Visit the PROs’ websites to explore their business licensing options and apply.
   • Pay Fees and Maintain Licenses: Pay the required licensing fees (typically ranging from $50 to $150 or more) and renew annually to stay compliant.
2. Choose a Seamless Option with SiriusXM for Business:
   Instead of going through the hassle of managing multiple licenses and payments, SiriusXM offers a seamless platform that handles all your music licensing needs. When you subscribe to SiriusXM for Business, the platform takes care of the legal complexities by covering all the required licenses with ASCAP, BMI, GMR, and SESAC. This means:
   • No worries about compliance—SiriusXM ensures you’re fully covered legally.
   • Access to hundreds of music channels and playlists curated specifically for business environments.
   • Family-friendly, ad-free music to create the perfect atmosphere in your business.

With SiriusXM for Business, you not only get access to legal, licensed music, but you also save time and effort. You’ll have everything you need to play music that keeps your customers happy, without needing to worry about the legal side.

FAQS on Music Licensing for Business

Get details on commercial music licensing and how to get a music license for business without the hassle.

Do I need to license music for my business?

Yes, any business that plays music in public spaces, such as retail stores, restaurants, or offices, must obtain a music license. Without a proper license from a Performing Rights Organization (PRO), you risk fines ranging from $750 to $150,000 per infraction. It’s important to understand that even if you use streaming services like Spotify or Apple Music, these are licensed only for personal use and cannot be used for commercial purposes.

What is an affordable music licensing solution for businesses?

A cost-effective solution is using a music streaming for business service like SiriusXM for Business. This service handles all legalities by covering the necessary licenses from ASCAP, BMI, GMR, and SESAC. With access to hundreds of professionally designed music channels and family-friendly, ad-free music, it’s an easy and reliable way to ensure you’re compliant while providing the best atmosphere for your customers.

How do I get a music license with a PRO?

To obtain a music license directly from a Performing Rights Organization (PRO), follow these steps:

1.  Identify the Appropriate PRO(s)

There are four main PROs in the United States: ASCAP, BMI, GMR, and SESAC. Each PRO represents different songwriters and publishers. To legally play music in your business, you may need to secure licenses from more than one of these organizations, depending on the variety of music you intend to use. Visit their websites to see which PRO covers the artists and music your business will play.

2. Complete an Application

Each PRO has an online application process where you will provide details about your business, such as:

• Business Type: Is it a restaurant, retail store, office, gym, or spa?
• Square Footage or Audience Size: Some PROs may base their fees on the size of your establishment or the number of customers.
• Music Usage: Will you be playing music via streaming, live performances, CDs, or other sources? This helps determine the correct licensing fees.

3. Select the Right License

Once you’ve provided the necessary information, the PRO will recommend the appropriate license(s) based on your business size, the type of music you play, and how often it will be played. These could include a general business license, a live performance license, or an on-hold music license.

4. Pay Licensing Fees

After selecting the appropriate license, you’ll need to pay the annual licensing fee. These fees generally range from $50 to $150 or more, depending on the size of your business and the type of music usage. Once paid, you’re legally licensed to play music for your customers.

5. Maintain Compliance and Renew Annually

Music licenses are typically valid for one year, so it’s important to track the expiration date and renew annually to remain in compliance. PROs will often notify you when it’s time to renew, but make sure to budget for this annual cost to avoid fines.

Alternatively, subscribing to SiriusXM for Business simplifies this process by automatically covering all licensing requirements.