Music can make any business environment more pleasurable and profitable. However, you need a business music license to get started. 

If you play music without a license, you could be hit with fines of thousands per song. It’s easy to break the rules too. If you play music from your Pandora or personal Spotify account, you’re violating laws. 

The easiest and most effective method? Work with Pandora CloudCover. We provide legal access to thousands of songs. And our business-friendly tools include key benefits like overhead messaging too.

Why You Need Music Licensing for Playing Music at Work 

Intellectual property (such as musical recordings and their underlying composition) is protected by U.S. copyright. You must ask permission from the copyright holder and pay compensation before you use the item in your business. 

Here’s a breakdown of what licensing means and how it works: 

Royalties 

Per the Internal Revenue Service, a royalty is a fee someone pays to obtain intellectual property. In simple terms, you must pay an artist and publisher something for the right to play their music in your business. 

For most businesses, the fee you’ll pay allows you to use music in a public performance.

A public performance license, obtained by your royalty fee, allows you to publicly perform a song either live (through a cover band, for example) or in a recording (through streaming). 

If you want to play many songs that are all held by the same copyright holder, a blanket license might be required. This license allows you to play all the music contained within that entity’s catalog. 

Performing Rights Organizations (PROs)

Business owners typically want access to many different songs. They connect with performing rights organizations (PROs) for blanket licenses that allow them to play a range of music within their facilities. 

Several PROs exist, including the following:

• American Society of Composers, Authors, and Publishers (ASCAP): This nonprofit, member-owned organization is one of the oldest PROs in the United States. 
• Broadcast Music, Inc. (BMI) : Founded by broadcasters seeking an alternative to ASCAP, BMI is a nonprofit PRO.
• Society of European Stage Authors and Composers (SESAC): This PRO operates on an invitation-only basis. 

Each PRO represents a different slice of the music industry, so you might need connections with all of them for the ability to play a wide range of music. 

A better option involves working with a music for business provider like Pandora CloudCover. We negotiate directly with PROs, allowing you to focus on your business without worrying about licenses or fines. 

Streaming Music for Business Providers 

Companies like Pandora CloudCover work directly with PROs on behalf of their clients. We negotiate licenses and fees and bundle all approved music into packages for easy streaming. You can simply plug and play.

Companies like this also provide business-friendly tools that make playing music easier. For example, you can use dayparting schedules to shift up the sounds throughout the workday. You can also tap into one dashboard to control music at multiple locations from one connected device. 

Pandora CloudCover offers access to millions of songs, all connected in playlists designed by musicologists. We also provide overhead messaging options that let you speak directly to customers when they’re ready to act.

Legal Risks & Potential Fines for Playing Music Without a License 

Copyright holders have rights, and they can take you to court for violating them. Lawsuits from unlicensed music aren’t just time-consuming. They can also be expensive. 

Per copyright law, every violation can result in a fine of not less than $750 or more than $30,000. If the court finds that the violation is willful (such as continued use of a song after a warning), an additional fine of not more than $150,000 can be imposed. 

The management team behind a Las Vegas hotel was taken to court for violations like this and hit with a $264 million fine. It’s clear that breaking the law just doesn’t pay. 

Common Misconceptions About Playing Music at Work

While copyright laws seem clear, plenty of confusion exists. Unfortunately, making a mistake could cost you a significant amount of money. 

Common errors people make regarding music licensing include the following:

• Assuming a personal Spotify account can be used at work 
• Playing music from YouTube and assuming that’s a legal music option for the office
• Skipping licensing because the office seems too small to matter 
• Assuming purchased music, such as CDs, is licensed for commercial use 
• Using music in promotional videos or ads and assuming no license is needed

Never make assumptions about playing music at work. You need a license from a copyright holder to play songs legally without worrying about fines and court cases. 

Additional Options for Playing Music at Work 

Some businesses can tap into one of the two following solutions and play music for less money. These ideas are complicated, and you must follow all of the rules carefully. However, if your budget is very tight, they can be worth researching. 

Royalty-Free Music 

Royalty-free music is music you can play indefinitely after making just one arrangement. Instead of paying a PRO or a business music company regular licensing fees, you’ll connect with the artist or publisher just once. 

Some royalty-free music is free. However, other songs in this category require a one-time fee that could be just a few dollars up to many more. 

Companies like Bensound and Soundstripe offer royalty-free music for in-person or streaming applications. 

Public Domain Music 

The public domain includes songs that were once protected and are old enough that the copyright has expired. The public domain can also include songs that were never protected by copyright due to errors by the owners. 

Understanding the public domain can be tricky. Very old songs are often remade by newer artists, and those songs are protected. To make this work, you must be very careful to only play the songs (and versions of songs) that are in the public domain. 

The Public Domain Information Project maintains a list of songs within this category. You can look it over carefully to make playlists for your business. 

Radio Broadcasts

In some situations, you can play the radio in your business. Your facility must be small (less than 2,000 square feet for retail or less than 3,750 for eating/drinking establishments). 

You can’t use more than a total of six speakers, and you can’t have more than four in a room. You also must use a sound system that would be typically used in a home. 

In addition, you must play a radio station that’s operating in your area (not a streaming channel). 

Many radio stations play commercials and have DJs. This could be less than ideal in some situations, but this option can be very cost-effective. 

Get Started With Pandora CloudCover 

Pandora CloudCover designs legal music products made for business owners. We handle all of the negotiations with copyright holders, so you don’t have to worry about fines or legal troubles. 

We also offer expansive products at a smaller price point than PROs. And our products come with features and capabilities to help you maximize your business through the power of music. 

We offer a 14-day free trial with no credit card required. You’ll quickly see and hear the difference.  Get started today. Terms and conditions apply.

References

Copyright Law of the United States (Title 17). (December 2024). U.S. Copyright Office. 

Royalties: Definition, Payment Processing, and Tax Reporting. University of Wisconsin-Madison. 

‍Chapter 5: Copyright Infringement and Remedies. U.S. Copyright Office.