Music licensing requirements for businesses in the United States
Why you can't use personal streaming services
There's a clear legal difference between listening to music for personal enjoyment and playing it in a business. Consumer streaming services such as Spotify, Apple Music, or Amazon Music are licensed for personal, private use only. Once music is played in a public or commercial space, it is considered a public performance, which requires separate licensing.
Using personal streaming services in a business setting can lead to significant legal consequences. Businesses have been fined thousands of dollars for playing music without proper licenses. These penalties can come from lawsuits initiated by U.S. performance rights organizations (PROs) like ASCAP, BMI, SESAC, and GMR.
Understanding music licensing in the U.S.
Using music commercially in the U.S. means navigating copyright law and securing the proper licenses. Here are the three main types of music rights that businesses need to be aware of:
Recording rights (master rights)
Cover the specific recording of a song, the version performed by a particular artist.
Publishing rights
Cover the underlying musical composition, including lyrics and melody, regardless of who performs it.
Public performance rights
Allow music to be played in public or commercial spaces. These are the most relevant for business owners and are administered by U.S. performance rights organizations (PROs).
Public performance rights are the most relevant for business owners. In the U.S., these rights are administered by four main PROs:
✔ ASCAP (American Society of Composers, Authors and Publishers)
✔ BMI (Broadcast Music, Inc.)
✔ SESAC (Society of European Stage Authors and Composers)
✔ GMR (Global Music Rights)
Each PRO represents different artists and catalogs. To ensure full legal coverage, businesses would normally need to hold licenses from all of them. Fortunately, SoundMachine simplifies this.