How to Legally License a Song in Your Business

Music is more than just background noise in a business. It creates atmosphere, sets the pace for customer interactions, and reflects your brand identity. But if you want to play a commercial song, whether it’s a chart-topper, a jazz classic, or an indie favorite, you need to do more than hit “play.” You need a proper license.

Failing to secure the right music license can lead to fines, lawsuits, or even public embarrassment if a performance rights organization (PRO) investigates your business. The good news is that licensing doesn’t need to be confusing. Below, we’ll break down the process step by step, explain typical costs, and show how services like music for business providers such as SoundMachine make compliance much easier.

Why Businesses Need a Music License

Playing commercial music in a business setting, retail, restaurants, spas, offices, requires a public performance license. This applies even if the music is from CDs, streaming services, or personal playlists.

Failing to obtain the correct license can result in fines from $750 up to $150,000 per song in the US, depending on the nature and willfulness of infringement. These penalties are enforced by organizations like ASCAP, BMI, SESAC, and GMR.

Step 1: Identify What You Want to Play

Before you can get a license, you need to be clear about your music choices. Not all songs are treated the same, and your business use affects the type of license you need.

Decide if you want to use popular chart-topping songs, independent tracks, or royalty-free music.
Determine if the use is for background ambiance, advertisements, or other commercial purposes.
Ask if music will be played live, via TV/radio, or as background streaming.

Step 2: Understand Your Legal Requirements

Once you know what you want to play, the next step is to understand the legal framework. Music copyright law has a few key categories of licenses, and knowing the difference will save you time and risk.

There are two main copyright licenses for commercial songs:

Public Performance License: Grants the right to play music publicly, required for virtually all types of business use.
Sync & Master Licenses: Needed only if synchronizing music with video (for ads, social content, etc.).

For most businesses playing overhead music, the public performance license is critical.

Step 3: Choose How to License Background Music for Business

At this point, you’ll decide whether to tackle licensing on your own or use a service that handles everything for you. Both are legal, but one is much simpler and usually more cost-effective.

There are two legal paths:

Obtain Direct Licenses from PROs:

U.S. businesses must pay for rights from ASCAP, BMI, SESAC, and GMR. Each PRO covers a different catalog and requires separate paperwork and payment.

Details and up-to-date PRO license costs can be found here:
Use a Licensed Background Music Provider:

Solutions like SoundMachine bundle all the required licenses within a monthly fee, handling the complexities for you. This is the simplest, most cost-effective and risk-free way for typical businesses to play a huge catalog of commercially popular music.

Step 4: Negotiate or Subscribe

With your licensing path chosen, it’s time to take action. Either you’ll need to contact rights organizations directly to set up contracts, or you can subscribe to a provider that’s already done the legwork.

Direct Licensing Route:
- Contact each rights holder or PRO and negotiate fees, based on business type, space size, audience, and usage.
- Expect to pay from a few hundred dollars annually (small business) to thousands of dollars for extensive use or for licensing famous songs individually.
- Licensing a hit song individually for advertising or custom use can cost anywhere from $100 (small indie artist) to several thousands or a revenue percentage (blockbuster tracks).
Provider Route (Recommended):
- With SoundMachine, plans start at $26.95 per month, covering licensing for ASCAP, BMI, SESAC, and GMR.
- No hardware required, fully legal music for business, and easy playlist scheduling.

Step 5: Keep Records and Stay Compliant

Licensing isn’t a one-time action, it’s an ongoing responsibility. Think of it less like a box to tick and more like a subscription to compliance. Even if you’ve already secured the right licenses, you’ll need to keep them up to date, store proof in case of inspections, and adjust your coverage if your business changes. This step is about making sure your music stays legal not just today, but every day your doors are open. Be sure to:

Renew your PRO licenses each year if you go direct.
Keep receipts and proof of compliance in case of audits.
Update your subscription if you expand to new locations or increase your square footage.

SoundMachine makes this step easier by consolidating everything into one account with automated renewals.

Example Scenarios

Independent café: Wants to play indie, acoustic, and jazz playlists. Direct PRO licensing could cost around $1,200 annually. With SoundMachine, the café pays $323.40 per year.
Hotel Lobby: Needs a broad mix of contemporary pop, jazz, and instrumental tracks to create a welcoming environment for guests arriving and checking in. Direct PRO licensing would mean juggling multiple organizations and annual fees. With SoundMachine, one subscription covers all necessary licenses and provides curated playlists that can be scheduled for different times of day to match the hotel’s atmosphere.
Retail store chain: Operating across multiple states, the business would face significant administrative work licensing directly. SoundMachine allows central control and scheduling across all stores from one dashboard.

Key Compliance and Risk Notes

Even with the right licenses in place, there are still pitfalls that can trip up business owners. Many companies unintentionally take shortcuts with music, assuming that using personal accounts or free platforms is harmless. In reality, these missteps can carry heavy financial and legal consequences. This section highlights the most common risks and the compliance essentials every business should keep in mind.

Never use personal streaming platforms (Spotify, Apple Music, YouTube) in a business, they’re not licensed for commercial use and using them opens you to legal penalties.
For non-U.S. businesses: always verify with your country’s collecting societies and confirm local PRO requirements.
Fines for unlicensed music can devastate small businesses, statutory damages could reach millions for persistent unlawful use.
Using a commercial service like SoundMachine guarantees legal status, all licensing obligations are met in one subscription.

Final Takeaway

Licensing music in your business is not optional, it’s a legal requirement. While you can apply directly with ASCAP, BMI, SESAC, and GMR, the process is time-consuming and expensive when managed separately.

Using a provider like SoundMachine simplifies everything. You get access to a massive music catalog, complete legal coverage, and business-friendly tools for one affordable subscription. It’s the most straightforward way to legally play the music your customers love, without the headaches of managing multiple licenses.