Click the links below for answers to common questions about licensing music to play at your business.
- Do I need to pay licensing fees for music played at my business?
Yes. To play music in any business setting, the service must be appropriately licensed. Unlike music services for personal use, music played at a business requires specific licensing; without it, there’s potential for large fines and/or litigation.In the US, performing rights organizations work on behalf of the artists to sell licenses to businesses that play their music. When a business plays music in a space where customers, visitors, guests, clients, patients, or employees can hear it, the business is engaging in what the law calls a “public performance” of the music—and that requires a different service license than a personal service.
Learn more by clicking the “Related link” below.
- What is a “public performance” of music?
A public performance is defined in US copyright law to include music played outside a normal circle of friends or family. This includes prerecorded music that is played overhead as background music, live music performed by a band or DJ, and even music played as part of a karaoke event. Music that is transmitted through the radio, television, or internet, or that is played for callers on hold is also considered a public performance. To publicly perform music legally, a business must get permission from every songwriter, composer, and music publisher who owns the copyright to the music. This permission is granted through a public performance license.
Performing rights organizations
Since it would be impossible for a business to contact every single artist for permission, the law allows for certain companies to act as intermediaries between the artists that create the music and the businesses that want to play it. These intermediaries, called “performing rights organizations” (PROs), work on behalf of the music artists to sell public performance licenses to businesses that want to use the music.
The PROs give artists an easy way to make their music available to businesses, and they give businesses an easy way to legally access the music they need to enhance their guest experience and grow their brand.
Learn more by clicking the “Related link” below.
- How do performing rights organizations (PROs) work?
There are many artists who create music, and there are millions of decision-makers who want to play the artists’ music in their business. Music artists want to make their music available to as many people as possible, including listeners in a business setting. The more businesses the artists can reach, the more revenue the artists will generate.
Music artists register with the PROs
To make their music as widely available as possible, artists select a PRO and register their music catalog with it. Once an artist is registered, the selected PRO has the right to license that artist’s music to businesses for use in a public performance format. There are four PROs in the US that manage all public performance licensing: ASCAP, BMI, SESAC, and GMR.
PROs sell blanket licenses to businesses
In total, the PROs represent many artists, making massive music libraries available for business use. A PRO makes all the music they represent available to a business by selling a blanket license. The blanket license gives the business the right to play any of the songs in the PRO’s catalog as much or as little as desired. The PROs collect fees from the businesses and then pass along revenue to the artists as royalties.
For SiriusXM Music for Business subscribers, all PRO licensing fees are included in the monthly plan rate. Therefore, businesses using the SiriusXM Music for Business service do not need to secure separate licenses with each PRO — they can simply play music from the SiriusXM Music for Business catalog.
PROs enforce music licensing laws
The PROs are also involved in enforcing the federal law. It is normal for the PROs to conduct random visits to businesses to ensure that the music played overhead is compliant. Businesses that are not appropriately licensed at the time are at significant risk when a PRO conducts a surprise visit — fees are often high.
Learn more by clicking the “Related link” below.
- How is music licensing monitored, and what are the penalties if I get caught?
Some business owners may not be aware of or fully understand music licensing requirements.
As a simple comparison, many people look at music licensing laws like traffic laws. (With so many cars on the road, what are the chances of getting a speeding ticket?) The reality is that when it comes to music licensing, a business’s odds of getting caught are much higher, and the cost is much greater.
The PROs have thousands of enforcement officers and large call centers reaching out to businesses each day to ensure they are properly licensed. The PROs also have a system similar to secret shoppers. They have representatives all over the country that visit businesses to ensure all licensing fees have been paid. Businesses that are not appropriately licensed at the time are at significant risk when a PRO conducts a surprise visit — fees are often high.
Click here for SiriusXM’s Customer Agreement for Music for Business Services.
- I already paid for the CDs, MP3s, or personal music service that I’m using for my business. Do I need to pay for a separate license if I use my personal music source?
Yes, business licensing is still required. When you purchase a CD, MP3, or similar personal music format, you are given permission for what is called a “nonpublic performance” of the music. This allows you to play the music in nonpublic places like your home or car. This type of music does not include public performance rights, so if this music is being performed publicly at your business, you are not protected. You need to either purchase direct licenses from each of the four PROs or save yourself time and effort by subscribing to a business music service that includes the appropriate licensing — such as SiriusXM Music for Business.
Learn more by clicking the “Related link” below.
- I already subscribe to a personal music service like Spotify, Pandora, or SiriusXM. Can I use that as background music?
No. Consumer services are licensed for nonpublic performance only and cannot be used in a public, commercial place. There is no purchasable license that would allow you to legally play a consumer service in a business environment.
Learn more by clicking the “Related link” below.