What Music Licenses Does Your Business Need?

Many small business owners assume a personal music app like Spotify or Apple Music covers the speakers in their store. It does not.

A personal music app is for personal listening only. Playing the same tracks on these services for customers in your store is a public performance. This post explains how to play legal background music and how to stay legally compliant when you have live music such as live music performances, DJs, karaoke and open mic nights.

Personal streaming accounts do not cover your business

Spotify, Apple Music, Amazon Music, and similar apps are licensed for personal use only. A personal subscription does not include public performance rights. Using that account in a store, restaurant, or hotel lobby leaves the business without the license the law requires.

Getting this right is straightforward. You need a music setup built for commercial use.

Legal background music for business

Licensed music for business services play playlists in the same way a consumer app does. The difference is the licensing.

These providers include the public performance rights in the subscription. They also offer tools that help manage music in your business, such as scheduling and explicit-lyric filters. Some let you bring over playlists you already use.

The public performance licensing you get with these legal providers only covers your overhead, background music.

Live music requires PRO licenses

Live music is also a public performance. It needs licenses from the performing rights organizations, or PROs, such as ASCAP, BMI, SESAC, and GMR. That is true even when the performer is unpaid. The venue is responsible for the licenses, not the performer.

• Karaoke: Guests singing published songs is still a public performance. The business needs the proper PRO licenses to be covered.
• DJ nights: A DJ playing recorded tracks for guests is performing copyrighted music in public. Paying the DJ does not replace the venue’s licenses.
• Live bands: Cover songs and published originals both need licensing through the PROs.
• Open mic nights: The same rule applies. Hosting the event makes it a public performance at your location. If someone plays a song registered with a PRO, you could be liable.

What Washington state says

Washington’s Department of Revenue points businesses to U.S. copyright law. If you play copyrighted music for customers, you need the proper licenses. Those licenses usually come from a PRO or from a commercial music service that already includes them.

The Fines are real

Federal copyright law sets statutory damages from $750 to $30,000 per infringed song. Willful infringement can reach $150,000 per song. PROs typically make repeated contact attempts before they pursue legal action. Treat those emails and letters seriously. Legal licenses cost less than a legal fight.

Find what music licenses you need

You can use the free Music Licensing Checker from MusicforBusinessFinder.com to get custom recommendations on what music licensing you need based on how you use music in your business. It only takes 60 seconds to get your results and take action to protect your business and get a great vibe for your customers.

About MusicForBusinessFinder.com

MusicForBusinessFinder.com helps small business owners compare licensed music providers and learn which licenses apply to their business.