You may be able to play AM/FM radio in your business, but you must meet specific requirements. Find out what may be involved, and learn why Pandora CloudCover is a better option for fully-licensed background music.

Playing the radio is one way to save money and entertain your customers with sound. In this article, we’ll share some of the factors which are involved and what could happen if a court or music rightsholder succeeds in demonstrating that you were not eligible to do so in place of using a service licensed for background music in business establishments.

• It’s small. If you're operating out of a 2,000-square-foot location (or 3,750 square feet for eating/drinking establishments), you can play a radio without a license as long as you don't charge admission.‍
• You have few speakers. You can’t use more than a total of six speakers, and you can’t have more than four in one room.‍
• You’re playing the actual radio. You’re not streaming a radio station. You’re tuning into a radio station operating in your area that’s licensed by the Federal Communications Commission.‍
• You’re using a system typical in a home. You can’t use radio systems that only have industrial applications. You must use something that people would usually use to entertain themselves at home.

If you don’t meet these conditions, you need a license to play the radio. Businesses often use streaming services like Pandora CloudCover as a custom, commercial alternative to radio music. We partner with PROs to stream fully licensed music so business owners don't have to worry.

Radio, Business, and the Law

People who create and/or record music have legal rights. Those rights can involve payment when the music is used, and they can involve protections that keep businesses from using the music improperly. Typically, when you prepare to play music as part of your business, you form a connection with performing rights organizations (PROs) that collect fees on the behalf of those who hold a copyright.

PROs implement and enforce copyright law, and there are very few exceptions for traditional recorded music. If you play music from a tape, CD, or streaming service, you typically must secure and pay for public performance licenses.

But there may be exceptions for some types of radio, played with some types of equipment, in some types of rooms.

A Question of Size

Size-based exemptions may involve:

• Food service or drinking establishments: Your space measures less than 3,750 square feet, excluding customer parking.
• Other types of businesses: Your space measures less than 2,000 square feet, excluding customer parking.

No matter the size of your business, speaker limitations may exist. You can’t use more than six speakers, and you can’t have more than four in any one room.

The above rules reference the use of a receiving apparatus commonly used in private homes. You can’t play the radio over an industrial-grade sound system or any other type of technology only available to businesses.

In essence, these laws are designed to help people who run very small businesses who might like to turn on a homestyle radio and play tunes from time to time. 

A typical business owner who falls into this example could include someone who brings in a traditional radio, rather than installing a sophisticated sound system, and plays the radio to pass the time.

Business owners who follow this model would need to be mindful of expansions. If their businesses grow substantially larger, they may need to adjust their licensing strategy.

Businesses that grow larger may also take over adjacent space, and that can mean playing music in multiple rooms. According to ASCAP, the radio exception does not apply if the music is transmitted from one room to another. That means pushing music from one building to another (via Bluetooth speakers, for example) could be a violation of music performance rights.

Internet Radio Is Not Protected

Radio has undergone a huge transformation in recent years. In addition to playing music through the traditional airwaves, artists can also touch audiences via the internet with streaming music channels.

While these channels might seem similar to a user, they are not similar in the eyes of the law. While there are limited exceptions for playing traditional terrestrial radio without bespoke public performance licenses, these exceptions do not apply to internet radio.

For example, imagine that you have a buddy who created a new internet-only radio program via Airtime Pro. This organization tells creators they can craft a new station without an FCC license. If you play a station like this in your establishment, you could be violating the exemption.

However, imagine that your local terrestrial AM/FM radio station also has an online version you can access via any piece of connected equipment you might have in your home. If you use a tool like this, and the station is FCC approved, you might be able to use this source under the exemption.

As the Palo Alto Area Bar Association points out, this is a contentious part of the law, and it is possible that a business owner could claim that the same exceptions apply to traditional radio and internet radio. But this approach is risky and leaves business owners open to lawsuits.

Risks Associated with Radio

While the thought of having an exemption that saves you money could leave you jumping for joy, there are real risks involved with radio.

Your traditional radio may also include CD players and ports for MP3 players. You may be tempted to switch to these other players from time to time, and each time you do, you could be subject to fines associated with publicly performing music without appropriate licensing.

In addition, you have very little control over the content that comes through a radio's airwaves. At times, a radio programmer's model may conflict with what's best for your business and customers.

For example, according to The New York Times, two New Jersey radio hosts admitted that they used "humor and sarcasm to make a point" during their show, and in one instance, they made derogatory comments about a prominent person based on that person's heritage.

If you play something in your business that offends your customers, your employees, or both, that could have a severe impact on your reputation. In some cases, it might leave you open to lawsuits. Choose your programming carefully, and monitor the content constantly. That could be more work than negotiating a contract.

Pandora CloudCover: A Better Option

At Pandora CloudCover, we offer music that is safe and appropriate for businesses large and small. We handle music licensing for our users, so you will not be subject to lawsuits and harassment from PROs. We also allow you to play our music through any speaker system that's right for you. With our help, you can create the perfect playlist and share it at the right volume and at the right time for the people who matter most.

Key benefits of Pandora CloudCover include the following:

• Appropriate licenses: Your subscription includes a public performance license, so you can play songs in your business without worrying about violating copyright law. 
• Extensive library: Your subscription includes access to the huge Pandora library of music. You can find just the right songs to keep your customers happy. 
• Business-friendly stations: Musicologists separate the music into stations based on business type and customer needs. If you don’t find a station that’s right for you, musicologists can make one for your brand.
• Zoning: One platform allows you to set up different playlists in different areas of your business. You can also control music across multiple locations. ‍
• Advertising: The platform allows you to create custom messages and share them between songs.

Start a free trial today, or contact us for a personalized quote. Terms and conditions apply.

Streaming Radio at Your Business FAQs

Here are some of the top questions we get about playing the radio at your business.

Does a business need a license to play the radio?

Very small businesses playing music through just a few small speakers may not need a license to play traditional radio. But larger organizations, or locations with challenging acoustics that need multiple speakers, may not be able to play traditional radio without a license. If you charge admission to enter your business, you’ll also need additional licensing, even if relying on the radio.

Is it always illegal to play music in my business?

Of course not! Even if you can't play the radio without a license, you can certainly entertain and delight your customers with music, as long as you obey applicable laws. Most larger companies use products and services from commercial music streaming companies. With these companies, you can create a playlist just for your customers, and you’ll know you're sharing music without breaking the law.

Can I play internet radio at my business?

It depends. Exemptions apply to certain radio stations, some of which are described above. If you find a radio station online that isn’t licensed by the FCC and play that station, you could be violating copyright law.

Can I use my business equipment to play the radio?

No. The exemptions apply to business owners that use equipment that might commonly entertain you while you’re at home. If you direct terrestrial radio signals through industrial-grade stereo equipment or business-only systems, you could be in violation of laws governing the public performance of music.

References

You Might Need a License to Play Music in Your Business. (September 2011). National Federation of Independent Business.

ASCAP Licensing: Frequently Asked Questions. ASCAP.

When Should a Small Business Pay ASCAP or BMI? (October 2011). Palo Alto Area Bar Association

Radio Hosts Suspended After Derogatory Comments About New Jersey Attorney General. (July 2018). The New York Times.

17 U.S. Code 110: Limitations on Exclusive Rights: Exemption of Certain Performances and Displays. Cornell Law School.

The Public and Broadcasting. Federal Communications Commission.

How to Start an Internet Radio Station From Home: A Step-by-Step Guide. (April 2020). Airtime.

‍

Legal Disclaimer:The materials on this website are provided for general informational purposes only and do not constitute legal advice. Any descriptions or references to products, services, or technologies represent opinion only and should not be construed as statements of fact.  The information is provided “as is,” without any representation or warranty as to accuracy, completeness, timeliness, or fitness for a particular purpose. We disclaim all liability for actions taken or not taken based on this content or any linked materials. Links to third-party websites are provided for convenience only, and we do not endorse or assume any responsibility or risk for their content, products, services, or potential damages arising from their use.