Music licensing requirements for businesses in the UK
Why you can't use personal streaming services
There’s a crucial legal distinction between personal enjoyment and business use of music. Consumer streaming services like Spotify, Apple Music, or Amazon Music are licensed for private, personal use only. Playing music from these services in a public or commercial setting is considered a public performance, which 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 the UK
Types of music rights
Businesses need to be aware of three main types of music rights:
✔ Recording rights: The right to use a specific recording of a song, as performed by a particular artist.
✔ Publishing rights: The right to use the underlying composition, including lyrics and melody.
✔ Public performance rights: The right to play music in public or commercial spaces. This is the most relevant for business owners and is managed by UK PROs.
UK performance rights organisations
In the UK, two main PROs manage the majority of music licensing:
✔ PPL (Phonographic Performance Ltd): Represents performers and record labels for the use of recorded music.
✔ PRS for Music (Performing Right Society): Represents songwriters, composers, and music publishers for the use of musical compositions and lyrics.
These organisations have formed a joint venture, PPL PRS Ltd, to streamline the process. Businesses now only need one licence, TheMusicLicence, to cover both rights.
Comparison table: UK PROs at a glance
| Feature | PPL (Phonographic Performance Ltd) | PRS for Music (Performing Right Society) |
|---|---|---|
| Rights Covered | Performers, Record Labels (Recordings) | Songwriters, Composers, Publishers (Compositions) |
| Members | 150,000+ performers/labels | 180,000+ songwriters/composers/publishers |
| Typical Cost | Up to £350/year | From £100/year |
| Licence Needed | TheMusicLicence (joint PPL PRS) | TheMusicLicence (joint PPL PRS) |
| Notable Role | Recorded music in public | Live and recorded music in public |