Music is a powerful part of business. The right track can set the tone for a restaurant, or add energy to a retail store. But playing or using music in a business setting comes with legal responsibilities. Songs are protected by copyright law, and using them without the right permissions can lead to fines or lawsuits.
To use a song legally in your business, you must secure the appropriate license. Most often this means obtaining public performance rights for playing music in your venue. In the U.S., these are handled by performance rights organizations (PROs) like ASCAP, BMI, SESAC, or GMR. In other countries, local PROs or collecting societies may manage these rights instead. An easier option is using a service like SoundMachine, which bundles the necessary licenses for compliance and convenience, though coverage can vary depending on your location.
Why Licensing Matters
Copyright law exists to protect the people who create music: songwriters, composers, and performers. When you play or use a song in your business, you’re publicly using someone else’s work. To do that legally, you need a license.
Failing to obtain the correct license can bring serious consequences. Performance rights organizations (PROs) in the United States, such as ASCAP, BMI, SESAC, and GMR, actively monitor businesses. If they discover unlicensed music use, they can demand payment, impose fines, or take legal action.
Under U.S. copyright law, statutory damages for infringement can range from $750 to $150,000 per violation. That means even a small business playing a few unlicensed songs could face severe penalties.
The good news is that licensing doesn’t have to be confusing. Once you understand the different types of rights, the path becomes much clearer.
The Different Rights You May Need
Not all music use is the same. The licenses you need depend on how you want to use the song. Here are the most common rights for businesses:
1. Public Performance Rights
If you play music in a business setting, whether over speakers, at live events, or through a streaming service, you need a public performance license.
- Who provides it? Performance rights organizations (ASCAP, BMI, SESAC, GMR).
- Example: A café playing a jazz playlist in the background must secure this license.
An easier option for most businesses is using a service like SoundMachine, which bundles all these licenses into one subscription. This way, you don’t have to deal with each PRO separately, and you also gain access to curated playlists designed for different business settings.
SoundMachine is available in more than 100 countries, giving businesses global access to its music catalog and tools. In the U.S., Canada, and Japan, subscriptions also include all major PRO licenses, ensuring complete legal coverage without the need to manage multiple contracts. For businesses in other regions, it’s still best to confirm whether additional local coverage is required.
Most businesses find this is the license they need most often. Without it, even playing music from personal accounts like Spotify or Apple Music is illegal in commercial spaces.
2. Synchronization (Sync) Rights
If you want to use a song in a video, advertisement, or other media project, you need a sync license.
- Who provides it? The music publisher or rights holder of the composition.
- Example: A hotel creating a promotional video with a pop hit running in the background.
Sync rights can be expensive, especially for popular songs. They are negotiated directly with the copyright owner.
3. Mechanical Rights
These cover the reproduction of a song, whether in physical formats (like CDs) or digital downloads.
- Who provides it? The music publisher or through agencies.
- Example: A yoga studio recording and selling class CDs with licensed background music.
For most small businesses that only want to play music in their space, mechanical rights aren’t usually needed.
How the Licensing Process Works
Licensing music depends on how you plan to use it. Here’s a step-by-step outline for the most common scenarios:
Playing Music in a Venue
- Identify your needs: Are you playing background music, live bands, or both?
- Contact a PRO: Businesses often need coverage from more than one organization, since each represents different artists.
- Secure a license: Pay annual fees based on factors like square footage, number of speakers, and type of business.
- Stay compliant: Renew annually and update your license if your music use changes.
Instead of juggling multiple PRO agreements, SoundMachine provides one subscription that already includes licensing with ASCAP, BMI, SESAC, and GMR. On top of compliance, you also get access to curated stations, scheduling tools, and playlists tailored to business settings. Depending on your country, you may still need to verify local PRO requirements, as licensing coverage varies by region.
Using Music in Media (Ads, Videos, Social Content)
- Choose your song: Note the exact track, including version and artist.
- Find the rights holder: Usually the publisher for composition rights, and the label for master recording rights.
- Request a license: Negotiate fees, which vary widely depending on the song and usage.
- Keep documentation: Always keep a record of your licenses to protect your business.
Risks of Skipping Licensing
Skipping licensing can feel tempting, especially for small businesses, but it comes with serious risks:
- Financial penalties: Fines can range from hundreds to thousands of dollars per violation.
- Legal action: Copyright owners may pursue lawsuits, which can damage your reputation as well as your finances.
- Business disruption: Some businesses have faced embarrassing public disputes or even shutdowns over music violations.
In short, ignoring licensing can cost far more than paying for it properly.
Simplifying the Process with SoundMachine
Managing multiple licenses can be overwhelming, especially when you need coverage from several PROs. That’s where commercial music services step in.
Providers like SoundMachine, a music for business platform, handle the licensing for you. Instead of negotiating with ASCAP, BMI, SESAC, and GMR separately, you pay one subscription that covers all necessary public performance rights.
SoundMachine is available in more than 100 countries, giving businesses worldwide access to its catalog and tools. In the U.S., Canada, and Japan, subscriptions also include all major PRO licenses, ensuring complete legal coverage without the need to juggle multiple contracts. In other regions, businesses should still confirm with local PROs or collecting societies to make sure coverage is complete.
This option saves time, reduces risk, and ensures that your music program always stays compliant.
Quick Examples to Clarify
- A restaurant playing pop music through its speakers: Needs public performance rights. Covered easily by a licensed business music service.
- A boutique making a promotional video with a Beyoncé song: Needs sync rights from her publisher and master rights from her record label.
- A local band recording and selling CDs of cover songs: Needs mechanical rights to reproduce the compositions.
Final Thoughts
Using music in your business is not just about ambiance, it is about respecting the rights of creators and protecting your business from legal risk. Whether you are playing background music, producing media, or distributing recordings, the key is to secure the correct license.
For many businesses, that can mean navigating multiple PROs or dealing with complicated legal terms. A service like SoundMachine simplifies the process by bundling U.S. public performance rights (ASCAP, BMI, SESAC, and GMR) into one subscription. It also offers curated playlists, scheduling tools, and music designed specifically for commercial spaces.
Keep in mind that licensing rules differ by country, so you may still need to check with your local PRO or collecting society to ensure complete coverage. With the right setup, and with support from a service built for business, you can focus on creating the right atmosphere while knowing your music program is both compliant and worry free.