SESAC music licensing for business use

Play music legally and confidently in your business with the right public performance licences. In the United States, this includes obtaining coverage from organizations such as SESAC, supporting the rights of songwriters and publishers. We make the SESAC music licensing process straightforward, affordable, and hassle-free, so you can focus on your business.

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What the law says about SESAC licensing

Under United States copyright law, any business that plays music in a public setting must obtain a public performance license. This applies whether the music is live, recorded, or streamed. It also applies regardless of how the music is played, including CDs, TV, streaming platforms, radio, or live bands.

SESAC (Society of European Stage Authors and Composers) is a recognized Performing Rights Organization (PRO) that provides these licenses. A SESAC music licensing agreement gives your business legal permission to play over 1.5 million songs from its catalog.

If your business already holds a license from ASCAP or BMI, it is important to understand that those licenses do not cover SESAC music. Each PRO represents different songwriters and publishers, so a separate SESAC music licensing arrangement is needed to play the music they represent.

This legal requirement applies to all kinds of businesses. Whether you operate a café, retail store, salon, fitness studio, bar, hotel, restaurant or event space, you need the correct license if you play music in your venue.

The risk of not using a licensed product

Playing background music for your business without a valid SESAC music licensing arrangement is a form of copyright infringement. This can open your business up to serious legal action.

SESAC and other PROs monitor businesses to ensure compliance. If they detect unlicensed music, they may send warning letters, pursue legal claims, or take the matter to court. Ignoring these warnings only increases the chances of a formal lawsuit, along with added costs and legal stress.

Copyright law does not make exceptions for businesses that are unaware of licensing requirements. If SESAC music is played without permission, your business is at risk.

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Why using unlicensed music can cost you

The financial penalties for copyright infringement are severe. The law allows statutory damages starting at $750 per song. If the court decides the infringement was willful, the penalty can rise to $150,000 per song.

In addition to paying damages, your business could be required to cover SESAC’s legal fees and court costs. In some cases, you may also be banned from using any music from the affected songwriters or publishers in the future.

Beyond the financial hit, legal disputes can harm your business reputation and impact customer trust. For small businesses in particular, these consequences can be overwhelming. In the worst cases, it may force a business to close.

Obtaining a direct SESAC music licensing agreement can be costly, especially when combined with the need for separate licenses from other major PROs. In the US, a business music service like SoundMachine includes coverage for SESAC, along with ASCAP, BMI, and GMR, at a significantly lower bundled rate.

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PRO licensing costs: What you’re really paying for

Music licensing fees can quickly add up, especially when you’re dealing with multiple Performance Rights Organizations (PROs). Each PRO represents different artists and songwriters, so businesses licensing directly often need separate licenses.

Here’s what you might expect to pay with direct licensing:

ASCAP licence fees start around $390 per year
BMI licence costs range from $250 to $2,000, depending on your venue size, industry, and how music is used
SESAC and GMR are invitation-only, for-profit PROs that do not publish their rates, and their fees are often negotiated at a premium due to their more exclusive catalogs

Even using conservative estimates, the total annual cost for licensing music from all four PROs can easily exceed $1,000, and that’s before you factor in the cost of a music streaming platform. With SoundMachine, public performance licensing from ASCAP, BMI, SESAC, and GMR is included for just $323.40 per year. That single subscription gives your business licensing for background music, along with access to curated stations, custom playlist tools, scheduling features, and integration with systems like Sonos and Crestron. It is a simple, affordable solution for playing music legally in your business.

Limits to Licenses

United States

A SESAC music licensing agreement allows businesses to legally play music from SESAC’s catalogue in a public setting, but there are specific limitations to keep in mind. The standard license does not authorize live performances by hired bands, DJs performing at your venue, or the use of music for karaoke. These activities usually require additional permissions and fall outside the scope of standard licensing terms.

If your business charges a cover fee, admission price, or any form of entry payment, this may also require separate licensing. Charging customers to access music performances typically introduces different licensing obligations that are not included in the standard SESAC agreement.

It is also important to note that a SESAC license only covers music within SESAC’s repertoire. If your business plays music from other sources such as radio, television, CDs, or digital files, you may need additional licences from other rights organizations. Using music in this way without full coverage could lead to copyright liability.

Outside the United States

SoundMachine is available in over 100 countries worldwide, helping businesses deliver background music in a wide range of international markets. Our service includes bundled licensing coverage for the United States and Canada through direct agreements with ASCAP, BMI, SESAC and GMR in the US and SOCAN and Re:Sound in Canada.

In other countries, while SoundMachine provides licensed music content, public performance licenses are required from your local performing rights organization under regional copyright laws. These local PROs manage performance rights on behalf of artists and publishers in their territories.

We are happy to help you understand what local permissions might be needed based on your country, business type, and how music is used in your space. For questions or assistance, please contact our support team. We aim to make the licensing process as simple and clear as possible.

Frequently Asked Questions

What is SESAC Music Licensing?

SESAC (originally the Society of European Stage Authors and Composers) is a for-profit performing rights organization (PRO) in the United States. It represents songwriters, composers, and music publishers by licensing their work for public performance in places like businesses, radio, television, and digital platforms. Unlike other PROs, SESAC operates on an invitation-only basis, offering a more selective and boutique approach to rights management. It collects licence fees from music users and distributes royalties to its members when their music is publicly performed. If your business plays music covered by SESAC’s catalogue, having a licence lets you use it legally and supports the artists behind the work.

Why does my business need a SESAC license if I already have ASCAP or BMI?

ASCAP, BMI, and SESAC each represent different collections of music. A license from ASCAP or BMI does not cover songs licensed by SESAC. Businesses licensing directly often need licenses from several PROs.

What types of businesses need a SESAC license?

Any business that plays music for customers or the public needs a license if they use SESAC-represented songs. This includes restaurants, shops, gyms, hotels, salons, event venues, and more.

How much does a SESAC license cost for my business?

The cost varies based on factors such as business type, size, number of locations, and how music is used (background, live, DJ, etc.).

What happens if I play SESAC music without a license?

Your business could face legal action. Statutory damages can range from $750 to $150,000 per song. You may also be responsible for paying SESAC’s legal fees and could lose the right to use their music in the future.

Is a SESAC license a one-time payment or a recurring fee?

SESAC licenses are typically billed on an annual basis. While you can obtain a license directly through SESAC, many businesses prefer to simplify the process by using a service like SoundMachine. In the US, we handle public performance licensing for background music on your behalf, provide licensed music, and offer flexible subscription options that include coverage from SESAC, ASCAP, BMI and GMR. To learn more or to get started, contact us.

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SoundMachine: Simple, legal music for your business

Handling music licensing on your own can be overwhelming and time-consuming. In the US, SoundMachine makes it easy by including public performance licensing from ASCAP, BMI, GMR, and SESAC for background music, starting at just $26.95 per month. You can even import your Spotify playlists, where tracks are matched to our licensed catalog, and start playing licensed music in your business right away. Try it free for one month by clicking here.