Music licensing requirements for businesses in Canada
Why you can't use personal streaming services
There’s an important legal distinction between personal and business music use. Consumer streaming services like Spotify, Apple Music, or Amazon Music are only licensed for individual, private enjoyment. Playing music from these platforms in public or commercial environments is considered a public performance and requires separate licensing.
Using a personal streaming service in your business could expose you to legal action, including fines and copyright infringement lawsuits. Canadian performance rights organizations (PROs) actively monitor compliance to ensure that music creators are compensated.
Understanding music licensing in Canada
Types of music rights
Business owners must account for these key music rights:
✔ Recording rights: The right to use a particular artist's recorded performance.
✔ Publishing rights: The right to use the underlying composition, lyrics, and melody.
✔ Public performance rights: The right to play music in public or commercial spaces. This is managed by Canadian PROs.
Canadian Performance Rights Organizations
In Canada, two main PROs manage music licensing for businesses:
✔ SOCAN (Society of Composers, Authors and Music Publishers of Canada)
Covers the rights of composers, songwriters, and music publishers for public performance and communication of musical works.
✔ Re:Sound
Represents performers and record labels, focusing on the rights to recorded music played in public settings.
| Feature | SOCAN (Society of Composers, Authors and Music Publishers of Canada) | Re:Sound |
|---|---|---|
| Rights Covered | Songwriters, composers, publishers (compositions) | Performers, labels (sound recordings) |
| Members | 175,000+ music creators and publishers | Thousands of artists and record companies |
| Licence Needed | SOCAN licence | Re:Sound licence |
| Notable Role | Music compositions in public (live and recorded) | Recorded music in public |
Businesses typically need to secure licences from both organizations to ensure legal coverage no matter the source or use of the music.