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A familiar issue that plagues business owners and executives is a lack of time. It can be challenging to find the opportunity to learn about all the components of music licensing; however, we understand how researching this topic can take up valuable time.
You’re wondering, “Are you legally playing music in your business?”
That is why we took the trouble to address some of the most commonly asked questions regarding legally playing music in your company.
1. Is it legal for me to use Spotify, Apple Music, Tidal, SiriusXM, or Pandora playlists as background music in my business?
The short answer is that, in a legal sense, no. Music streaming services are divided into two categories B2C and B2B. For example, it is unlawful for you to play clean Spotify music at your company.
You can’t use Spotify to run a hotel or a retail shop. However, having a Pandora for Business or the equivalent of Spotify would be a suitable business option since it would include a commercial music license.
The Spotify commercial license costs $35 per month for the base plan. Companies like Spotify, Tidal, SiriusXM, and Pandora provide B2C music streaming services which are designed for consumers only. Pandora and Spotify’s B2C licenses aren’t appropriate for commercial usage.
This indicates that you can use them privately for non-commercial purposes (ideal for use at home with your friends and family). To play music in public locations, such as restaurants and shops, you’ll need a Public Performance License (PPL) (also known as a performance license/permit).
Don’t be concerned! In this article, we’ll teach you how to obtain this business license to perform music for the public in a business environment.
2. Is it legal to listen to purchased iTunes music on my iPod, iPad, iPhone, CDs, or digital files for background music, etc.?
It’s no surprise that many people are puzzled about whether they own their digital content in the age of technology. When you pay to download music or movies, you’re purchasing a license and leasing the material. Furthermore, you may only utilize this music in a non-commercial environment. You are free to listen to the songs as much as you wish, but it is not legal to perform them in public.
If you play the downloaded music in your business, it would be a copyright violation because the act is now considered a public performance. Commercial usage requires a license for music streaming. A Public Performance License (PPL) is required for public performances (PROs).
3. How can I get the licenses for playing music in a business? How much does the BMI and ASCAP license cost?
In the United States and Canada, there are four leading performing rights organizations that songwriters, composers, and publishers join: ASCAP (American Society of Composers, Authors and Publishers), BMI (Broadcast Music, Inc.), GMR (Global Music Rights), and SOCAN (The Society of Composers, Authors and Music Publishers of Canada).
You may have looked for answers to questions like these: How do I license music for commercial use? Do I have to pay ASCAP licensing costs? Do I need a BMI license? Is it necessary to get an ASCAP or BMI registration to publish my own songs online?
To stream music at work, you’ll need a legal license. You may do so in various ways, such as by using a business that pays for public performance permissions, like Jukeboxy. When you acquire a license for a specific PRO, you may only play the music in your business from that PRO’s collection. These licenses might be costly, and the subsequent monthly compliance reports might be time-consuming to finish and submit.
4. What is the cost of licensing music for my company?
There are several methods to obtain the necessary public performance license to perform music in a commercial. Your unique requirements and budget will determine your choice.
Option 1: Traditionally, businesses have had to negotiate license fees with all of the major Performance Rights Organizations (PRO) on their own. This option may set you back up to $2000 per year and requires significant time and effort.
Option 2: For a low monthly fee, you may subscribe to a music streaming service – like Jukeboxy – that provides blanket music rights for companies from all four major PROs, saving you time and money.
5. When does music copyright infringement occur?
According to copyright law, the holder of musical copyrights has exclusive control over how the music can be used.
You are committing copyright infringement if you, as a company owner, choose to play copyrighted music at full blast without authorization. You may be fined up to $150,000 per song played.
Extra Read: How to comply with the copyright law?
6. What happens if I stream music in my store without purchasing the required rights?
The answer to questions like “Do I have to pay ASCAP?” or “Do I need to pay BMI?” is that you first need permission from the copyright owner to play copyrighted music in public. Visit Copyright Law of the United States for details.
If you play music without the proper authorization, you could be charged anywhere from $750 to $150,000 per song.
For example, ASCAP filed legal action against bars and restaurants across the United States. While the running cost of these venues to perform music might be as low as $2 per day, they refused to pay ASCAP’s songwriter, composer, and music publisher members’ fees and were subsequently sued. You can find the complete list of businesses here.
Every year, BMI files legal actions against roughly half a dozen companies in New Jersey alone for playing one of the songs in its 8.5 million song library without permission.
Check the following link for information about these cases. Restaurant was thus fined $24,000 ($6,000 per song).
Sued firms may face significant expenses and animosity if they are not quick to find an affordable and licensed music solution.
As a business, it is essential to protect your music licensing. Understanding the different types of licenses and what they cover can help you do just that. The six questions we’ve outlined are a great starting point for understanding what type of license you need for your business and how to get started playing legal business music. Have more questions? Add in comments.
