If you play music in a business, start with one question: can people outside your family or close social circle hear it? In U.S. copyright law, a work can be publicly performed not only in a place open to the public, but also anywhere a substantial number of people outside a normal family circle are gathered. Copyright owners hold the exclusive right to allow those public performances.
That is why a personal playlist or consumer streaming account can become a licensing issue once the music becomes part of your business setting. Our music licensing for business hub is built around that problem.
Start With the Public Performance Rule
Most businesses should assume they need a license if music is being used to set the mood, fill silence, or support the brand. A retail store playing music during shopping hours, a restaurant running a dinner playlist, a bar using late-night tracks, or a hotel setting the tone in the lobby will usually fall into public performance territory. The same goes for a salon or barbershop, a gym, or an office with music in shared spaces.
A Quick Way to Check
- Customers, guests, tenants, patients, members, or staff can hear the music.
- The music is being played through speakers, TVs, radios, or a business sound system.
- The playlist is part of the atmosphere, pacing, or customer experience.
- The music is being used at a client, staff, or member event that is still outside a normal family setting.
If that sounds like your setup, you should check your licensing requirements before you press play. At SoundMachine, our background music for business platform is fully compliant and suitable for all industries.
When You Might Not Need One
There are narrow exceptions in U.S. law, but they are smaller than many owners think. One exemption can apply when a business is only receiving a radio or TV broadcast on ordinary home-style equipment, with no direct charge to hear it and no further transmission to the public. The law also uses square-foot thresholds and caps on speakers and screens for larger spaces.
A very small shop with a basic radio may be in a different position from a larger space with a built-in sound system. But this is not something to guess at. Once you move beyond a small, ordinary setup, the exemption can disappear fast.
Personal Streaming Does Not Count as Business Licensing
A paid personal music account is not the same as a business music license. Spotify says its service is only for personal, non-commercial use and says businesses cannot play it publicly in places such as bars, restaurants, schools, stores, and salons. ASCAP also says permission is still needed when music is played from records, tapes, radio, or TV in an establishment.
The same point applies when you bought the CD, downloaded the song, or made the playlist yourself. Access to music is not the same as the right to perform it in public.
Who Usually Handles the License
In the U.S., businesses often deal with performing rights organizations, or PROs. These groups license the public performance of the songs they represent and pass royalties back to songwriters and publishers. A license from one PRO does not automatically cover the catalogs of another, which is why businesses often run into names like ASCAP, BMI, and SESAC.
The business is usually the party responsible. BMI says the owner of the establishment is responsible for the permission to publicly perform BMI music, and SESAC says the business owner is typically responsible because the business controls what happens on the premises.
Cases That Need Extra Attention
Some setups go beyond ordinary background music and should be checked before launch.
- A DJ night, live band, or karaoke event
- A cover charge, entry fee, or ticketed door
- Music played from radio, TV, CDs, or MP3 files outside your licensed service
- Locations outside the U.S., where local rights groups may apply different rules
SoundMachine’s licensing page says its standard background music coverage has limits around DJs, live bands, karaoke, admission charges, and outside music sources. It also notes that businesses outside the U.S., Canada, and Japan may need help from local collection societies.
What to Do Next
If you use music in your business and you are still not sure where you stand, check before you play. SoundMachine gives businesses a way to run licensed background music while choosing stations, building mixes, scheduling by time of day, programming messages, and managing multiple locations from one system.
Join thousands of businesses using SoundMachine to create better customer experiences through music. With fully licensed tracks, customisable playlists, and simple scheduling tools, it’s the hassle-free way to deliver the right sound for your brand every day. Get in touch to learn how.