Music sets an emotional scene, so getting the right music for your business is crucial.

Businesses — from online content creators to retail store managers to medical practitioners — want access to great music. The right track can put a consumer’s mind at ease, get them excited about the product, and convey the story of the brand, all in the span of a few minutes.

Getting the Music You Want: Legally Licensing Songs

There are several ways to get music for a business venture. Major film studios, for example, commission composers or pay popular musicians to create soundtracks for large motion pictures. Commercials for cars, electronics, and clothes might feature original songs or the latest trendy pop hit. A YouTube streamer might play ambient music that they found online.

These are all different approaches to finding and using music, but they each have something in common: licensing intellectual property rights for the music’s specific application. U.S. intellectual property law provides creative workers like composers and musicians a way to receive payment for their hard work when another business entity decides to use a piece of music in a manner that financially benefits them.

Regardless of the type of business you run, it is important for you to get the right music license if you want to use one or more specific songs.

Understanding the Legal Basis of Playing Background Music in a Commercial Setting

Copyright laws are designed to protect both the creative work (the lyrics and musical composition of a song) and the recording of that work.

If you’re playing background music in a commercial setting, it's likely considered a public performance. It’s improper to do so without the appropriate licenses, and the penalties can be steep.

Consequences of Violating Copyright 

The rights of musicians, songwriters, and publishers are enshrined in U.S. Copyright law. Generally speaking, those who control music copyrights have a say in how and when their songs are played by others. If someone uses their work without permission (when required), the person or organization with the copyrights can take the alleged violator to court and sue for damages. 

Per copyright law, those damages may be between $750 and $30,000. Those fines apply per violation — which means per song played. If the courts determine that you’ve violated the law willfully, an additional charge of up to $150,000 could be added. 

PROs can (and do) file lawsuits to get damages from business owners. For example, a bar in Arkansas was sued by BMI in 2024 for playing songs without a license. The plaintiffs alleged that five songs were played without a license, and they said the decision to play the songs was willful. This case is still working through the courts, but it could cost the bar thousands of dollars. 

Alternatives to Copyrighted Songs

Royalty-free music is different. Songs in this category may require an upfront payment.

Songs that are in the public domain are not protected by copyright laws, as the protections have either expired or the songwriter wanted their music in the public domain. Note: The sound recording embodying the song may still be protected.

A few critical terms that can help you understand the legal issues involved include the following:‍

Copyright

‍This is legal ownership of a song’s composition or recording. Multiple parties can hold the copyright to both aspects or just one part.

Licensor

‍The person or entity holding the copyright. They can allow another entity to use a song in a limited and specific way.

Royalty Free

‍Royalty-free music is not necessarily free of charge. Many artists release music as royalty-free but require an upfront payment before agreeing to a license. Once you have submitted this reasonable expense, you are allowed to use the song as specified.

Public Domain

‍These songs typically once enjoyed copyright protection, but that protection has expired. Public domain songs can refer to the composition only (not the recording), so modern interpretations of old songs might still need licenses to play them.‍

Creative Commons

‍This is a new type of intellectual property licensing inspired by creators offering their work for free to their audience online. The Creative Commons license allows the artist to retain intellectual property rights after their work is published while simultaneously specifying free and open use of their work in certain settings. Many musicians offer their songs for free to filmmakers, bands, content creators, or brick-and-mortar stores who want to play music. Sometimes, the artist specifies that they want credit for their work.

Many musicians offer their songs for free to filmmakers, bands, content creators, or brick-and-mortar stores who want to play music. Sometimes, the artist specifies that they want credit for their work.

Fair Use

Fair use is a commonly referenced but frequently misunderstood copyright concept. Many websites and individuals will claim this defense, but you should proceed with caution.

Performing Rights Organizations (PROs)

‍Organizations like BMI, SESAC, ASCAP, and the newer Global Music Rights (GMR) manage catalogs of thousands of songs from thousands of artists. Licensing agreements are available to purchase through their websites.

Although all these organizations have large catalogs, they do not manage the same songwriters. You may find yourself purchasing commercial licenses through more than one of these organizations to get the music you want for your commercial setting. Most artists use multiple songwriters on a single song.

Online Streaming Music Services

Music services like Muzak and DMX work with PROs to get licenses for a wide range of background music — a soundtrack played in spaces where the patrons may not pay attention exclusively to each song. Some music services charge a flat monthly subscription fee based on how many commercial spaces are expected to have access to the catalog.

It is important to note that some personal streaming services, like Pandora or Spotify, have commercial versions you can subscribe to. But having a standard personal subscription does not qualify you to make a playlist and broadcast it in your business.

Types of Licenses & Music Use

Before you start buying licenses for music, it is important to understand your options in this area. There may be exceptions for using some kinds of music, but many people find it beneficial to go through a company (either a PRO or a music service) to get licenses.

These are typical types of licenses, along with examples of how they might be used. Know that they can overlap, and it’s common for people who use music to need more than one. 

Master Synchronization License

This license grants a person the right to use a pre-recorded song in a visual project (like a video) or an audio project (like a new sound recording). 

Imagine you’re creating a video game, and you think the song “Beat It” by Michael Jackson would be the perfect soundtrack. You’d need a master license to make this legal.

Mechanical License

‍This license allows someone to reproduce a musical work as a cover song. It also allows people to sample famous songs. It is required when covering someone else’s composition in a new recording.

Publishing Synch License

‍This license is required with using a musical piece accompanied by something visual (like a video or photos). With this license, you can synchronize the video to the music. 

Imagine you’re a business owner who wants to create a digital ad using a famous song like "Margaritaville" by Jimmy Buffet alongside photos of your drinks. A synch license (for both the recording and the composition, if using both) would be needed in advance to make this possible.

Public Performance

This license allows you to play a protected piece of music live in a public place. For example, you'd need a license like this when music is played for a group of people who congregate in one space who aren’t related or friends. 

If you own a commercial business, like a restaurant or retail outlet, you’ll likely need a public performance license to play music in the background.

Theatrical License

‍This covers the right to use a song in a live performance such as a play, musical, opera, or dance.

If you own a business with a stage and want to host a live performance of the musical “Rent,” you’d need a theatrical license to ensure the songs are properly licensed for performance.‍

Blanket License

A blanket license grants someone access to an organization’s entire catalog. Many PROs offer this to businesses, particularly brick-and-mortar stores who want the ability to play many songs in the PRO’s catalog in rotation.

Potential Ways to Get a License: Step by Step

Before you start playing music in a commercial setting, you need the right licenses for the songs you want. A typical process might include:

1. Research PROs

Music publishing PROs administer public performance licensing for a song’s composition. Several of these organizations are active, including the following:

• The American Society of Composers, Authors, and Publishers (ASCAP)
• Broadcast Music, Inc. (BMI)
• Global Music Rights (GMR)
• Society of European Stage Authors and Composers (SESAC)

Most will have a list of represented publishers, songwriters, and songs plainly visible, but some have search functions available. If you have a specific artist or song in mind, ensure that the PROs you’re considering can provide the access you need. Remember, many songs have multiple writers and are usually affiliated with different PROs.

This step shouldn’t take long, and there is no fee associated with the work.

2. Take Measurements 

Most PROs set their fees based on facility size. Specifically, they’ll want to know the size of the room in which songs will play. If you have blueprints, this step won’t take long. If you don’t, this might take an hour or longer for you to measure the space.

3. Review Your Clientele 

If you own a space like a bar or restaurant, some PROs will ask how many people will hear the music. If you don’t already take reservations or use a counter at the door, now is the time to do so. You’ll need accurate measurements for your conversations. 

4. Determine Your License Type 

How do you want to use music in your business? If you just want music in the background, a performance license might be enough. If you want to do more, you may need a different type of license or multiple licenses.

5. Contact the Organization

Once you’ve determined who holds the licenses for the music you want to play, it’s time to negotiate. Call the PRO or fill out an online form and allow them to contact you. Provide the information you’ve gathered about your facility, and detail how you want to use music.

6. Sign the Paperwork

The PRO will likely offer a contract that outlines how you can use the music and how much you’ll pay for a license. Your fee could be as little as $2 per day, or it could be much more. Review the terms and conditions carefully before playing music in a commercial setting. If you violate the PRO's agreement, the organization could come after you with fines and sanctions.

Cost Factors to Consider

How much will you pay for the songs you’d like to play in a commercial setting? The answer can vary dramatically.

PROs often examine factors like the following when setting pricing:

• How popular is the song?
• How large is the organization that wants to use it?
• How many people will be exposed to the song via this license?
• How will the song be used?
• How much revenue might the application generate?

Each PRO can set licensing fees very differently based on the answers to these questions. In some cases, it’s less expensive to create a relationship with a PRO and gain access to the entire catalog for a fee. If you only want one song for a limited application, negotiating for just that song might be less expensive.

PROs like ASCAP don’t usually make their fee structures public, so it’s impossible to estimate how much one song might cost. To find out, you must contact them directly.

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What Is a PRO?

PROs are organizations that professional lyricists, composers, and publishers join in order to help their music be distributed more widely while also protecting their intellectual property. By some estimates, over 85% of the fees collected from licensing music by the two largest American PROs are paid to the artists as royalties.

Using the PRO system is the easiest way for musicians and composers, whose work has been published, to receive regular payment for public performance of their intellectual property, as it becomes more widely distributed.

These organizations help administer public performance licensing and royalty collection for industries like: filmmakers and producers, live performance venues, restaurants and bars, retail shops, and even commercial spaces, which now include office buildings, business meetings, and similar applications.

Contracts for Public Performances

Every time a song is played in a space where a significant number of people can hear it, the music industry considers that a public performance. The original musician or composer does not have to be present and performing it at that moment.

PROs typically negotiate contracts with individual businesses to understand how the music will be used, how often, and how large the audience will be for that particular business customer. Then, they use this information to determine the fee they charge to the business.

Performance Licenses

Businesses that have physical spaces often want to play music, but this requires licensing for this type of public performance with a PRO. Commercial spaces benefit from playing background music for their customers, which includes financial benefit.

Commercial spaces include conference rooms, shopping malls, office buildings, meeting rooms, presentations, trade show cubicles, and more.

License Exceptions in Brick-and-Mortar Businesses

There are some exceptions regarding performance licenses for music. The business owner may qualify for a "home-style exemption" if the following criteria are met:

• Any given composition cannot be heard beyond the premises.
• There is no charge for admission.
• The only source is a radio, television, or satellite source.
• The grounds are smaller than 2,000 gross square feet.

However, some restrictions apply. A few examples:

1. Radio transmissions cannot be broadcast over more than six speakers, with no more than four speakers in any given room.
2. Television broadcasts cannot come from more than four TVs in the establishment, with no more than one TV per room.
3. No TV can be larger diagonally than 55 inches.

While many business owners understand that the confines of their brick-and-mortar establishment must be covered by a license when customers are around, there are several nuances to music copyright law, especially as those laws are revised, which require commercial licenses. Too many businesses get into legal trouble before they understand the differences.

Commercial Applications for Music

Below are a few examples of common commercial applications for music that require licensing:

Offices

‍Professional office spaces often unintentionally fail to comply with music licensing requirements. It may seem harmless to play a specific song in a business’s cafeteria, breakroom, or coffee area during a birthday or holiday celebration among employees or during an employee presentation.

However, as copyright law changes and evolves, each of these instances requires that the business or individual should secure licenses for music played.

Waiting Rooms & Lobbies

‍If your business rents or owns space in a larger commercial office building, you are not responsible for the music they choose in their public spaces, like the leasing office, lobby, or elevator. However, if your business owns these spaces, you are responsible for the music licensing requirements for playing music there.

You may be able to play an AM/FM radio station within certain limits, but your patrons may not enjoy hearing commercials, static, or songs that are not appropriate to their mood. You have much less control over a radio station’s choices, which can influence whether your patrons enjoy being in your lobby or waiting room and if they choose to come back.

On-hold Music

Most larger companies purchase music specifically written to be played while a caller is on hold. Companies that compose these soundtracks range greatly in size, from large to home-based companies.

However, familiar music is increasingly being used as on-hold music, so licensing these songs with this intention through a PRO or music service may be important for your business. The phone may not seem like a commercial space, but it is part of your business that gets traffic from consumers.

Elevators

‍Many people joke about the poor music choices in elevators, but many companies made those choices for strategic reasons. The history of music in elevators is a study in early psychology. Muzak was invented in 1922 to calm people who may have a fear of elevators, and it has stuck around as a stereotype ever since. This may also be called Muzak environmental music.

More modern elevators still play calming music, but songs can range across genres, depending on what the business needs. And to play this music, even Muzak, the business owner needs a license.

Trade Shows, Conventions, & Meetings

‍Maybe you are working on a slideshow presentation and want a specific song playing at the end. Perhaps you are working on a speech at a convention and need a playlist as the audience comes into the room; or maybe you have a booth at a trade show and want to draw attention with some energetic music.

All of these may seem like harmless uses. After all, you are not directly making money from any of these events. But you may have to pay to use a song for even a small business meeting.

Filmmakers & Content Creators

Getting a music license for a film, video game, television show, web series, live streaming show, or other kind of content is different from getting a license for a brick-and-mortar storefront.

Filmmakers

Most filmmakers, regardless of medium, need a sync license. This is because the song will be synchronized with video of some sort, whether it is a commercial, music video, intro segment for a show, or montage sequence in a film.

Marge movie and television production studios usually have departments that negotiate these contracts with PROs. As an indie filmmaker, web series producer, or individual content creator, you may need to check with the PRO’s website to begin the contract process and make payments.

Content Creators

If you are a one-person operation, especially as an online content creator, you may be worried about the time involved in negotiating these contracts and the cost of the license itself. If you regularly produce content, you may need access to a big library of music you can use, but you may not want to pay hundreds or thousands of dollars.‍

Some companies like YouTube offer info to help small producers navigate this problem within their platform by offering the ability to check on what type of license is associated with the song, to determine whether you can use it on a monetized platform or not. Then, you can purchase a license for that individual video or manage other types of music licensing for your whole platform.

Marketing Material & Other Public Performances

Some businesses assume that adding music to a slide presentation or internal training video is acceptable use of a song and they do not need to pay a license fee. Depending on the size of the audience, this may not be true. Here are some examples of times you will need to license music, even if it is for internal use:

• Conference presentation: If you send representatives of your business to a conference, their presentation is not internal use, as it is being presented to a larger audience that might financially benefit you. This is considered a public performance.
• Training videos: If you produce a training video with paid actors, producers, and editors, you will also need to license any music you use, unless you specifically commission composers for this video.
• Lobby graphics and displays: If you apply music to any kind of video or image slideshow that is presented within your business like in your waiting room, offices, or lobby, you will need to license the music.

The Benefits of Music Services

If you want to play background music in your business, it’s worth it to sign up with a streaming music service. You can then rest assured that you are legally playing music, and you can get assistance with playlists. Consider a music service like Pandora CloudCover to help you manage licenses and create an environment for your business that supports your patrons.

Music Licensing Frequently Asked Questions

Do I need a special business streaming service to play music in my commercial space (restaurant/store/etc.)?

You need a public performance license to play background music in a commercial space. You can get a license like this through a business streaming company (like Pandora CloudCover), or you can get it through a PRO. 

What is the difference between a public performance license and a blanket license?

A public performance license is a legal right enjoyed by a copyright holder to play music publicly. A blanket license is a name often given to a PRO who provides a public performance license for their entire repertoire.  

What factors influence how much a license will cost?

Many factors are involved in the cost, including the size of the space, the type of business it holds, the number of speakers it includes, and more.

What happens if I play music (protected by copyright) without proper licenses?

You could be subject to fines and lawsuits if you play music without proper licensing. 

How do I know which PRO(s) I need to get licenses from?

You could visit the websites of each PRO for detailed lists of the artists they represent. Find the one with the closest match to the type of music you’d like to play. Be careful, as different PROs can represent songwriters who collaborate on the same song. You may need licenses from each one for complete licensing, or you can choose a business streaming service like Pandora CloudCover instead. 

Do I need to get different licenses for online use vs in-person and physical spaces?

Yes. Playing music in person requires a different type of music than playing music in an online format. 

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References

Music in the Marketplace. (2018). Better Business Bureau.

Music Licensing Basics for Apartments. (2015). National Multifamily Housing Council.

Why Playing Music in Your Building Could Be Risky Business. (October 28, 2015). Multifamily Executive Property Management.

5 Things You Need to Know About Music Licensing and Meetings. (August 27, 2015). MeetingsNet.

Understanding Music On Hold Copyright and Licensing. Easy On Hold.com

Elevator Music: Do’s and Don’ts. (February 28, 2017). Mowry Elevator.

It’s the (New) Law: Licensing Music at Your Meetings. (July 1, 2014). PCMA Convene.

How Music Licensing Works: ASCAP and BMI. (August 22, 2003). HowStuffWorks.

Licenses. Creative Commons.

How to License Music for Streaming. (March 2021). Streaming Media Europe. .

Know How Music Rights Are Managed on YouTube. YouTube Creator Academy.

Musical Works, Sound Recordings, and Copyright. (February 2020). United States Copyright Office.

Copyright Infringement (Summary/Potential Consequences). (November 2018). University of Arkansas at Little Rock.‍

ASCAP Licensing: Frequently Asked Questions. ASCAP.

Cregeen’s in Jonesboro Sued Over Unlicensed Performances. (January 2024). Arkansas Businesses. 

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

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