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The Importance of Using Licensed Music for Your Business
Music is a powerful tool that can enhance the atmosphere of your business, influence customer behavior, and create a memorable experience.
However, using music in a business setting comes with legal obligations. Playing music without the proper licenses can lead to significant fines and legal trouble.
This blog will explore the importance of using licensed music in your business, answering common questions, and providing guidance on how to stay compliant.
Can I Play Music at My Business?
Playing music at your business is not as simple as pressing play on your favorite playlist. When you play music in a public setting, such as a retail store, restaurant, or office, you are performing the music publicly. Public performance of music requires proper licensing, as the music’s copyright holders have the right to control and receive compensation for how their music is used.
Want to play music in your business?
Small businesses can start today with a free music player from Mood.
Larger companies – contact our sales team to learn more about enhancing your brand experience.
Public Performance Rights
The key issue here is public performance rights, which are a part of the copyright law. When music is played in a business, it is considered a public performance, and the business must obtain the necessary licenses from Performance Rights Organizations (PROs) such as ASCAP, BMI, and SESAC in the United States. These organizations manage the rights of composers, songwriters, and music publishers, ensuring they are compensated for the use of their work.
Can I Use a Personal Streamer like Spotify or Apple Music?
Many business owners might wonder if they can use personal streaming services like Spotify, Apple Music, or YouTube to play music in their establishments. The short answer is no. Personal streaming services are designed for private, non-commercial use only. Their terms of service explicitly prohibit using their platforms for public performances.
Do I need a music license for my business?
Personal Use vs. Business Use
When you use a personal streaming service in a business setting, you are violating the terms of service and infringing on the music’s copyrights. These services do not cover the necessary public performance licenses required for business use. Instead, businesses need to subscribe to commercial music services specifically designed for public performance, which come with the appropriate licenses.
What Are Music Licenses?
Music licenses are agreements that grant permission to use copyrighted music in specific ways. For businesses, the most relevant licenses are public performance licenses. These licenses are issued by PROs and allow businesses to legally play music for their customers.
Types of Music Licenses
Fines and Fees: The Consequences of Playing Unlicensed Music
- A bar in Denver was fined $27,000 by ASCAP in 2019 for failing to maintain its music license.
- In New Jersey, a restaurant paid more than $20,000 in fines to BMI for playing unlicensed songs.
- One bar in St. Louis had to shut down after facing a lawsuit from BMI due to unlicensed music.
- An Ohio venue was fined $1.5 million for allowing a cover band to perform unlicensed music.
These examples illustrate the serious financial risks of neglecting to obtain the necessary music licenses. Beyond fines, businesses may also face legal fees and potential damage to their reputation.
How Do I Get Licensed Music?
Obtaining licensed music for your business involves a few straightforward steps:
Looking for licensed music?
Small businesses can start today with a free music player from Mood.
Larger companies – contact our sales team to learn more about enhancing your brand experience.
What Is a Professional Music Provider?
A professional music provider offers licensed music solutions tailored for business environments. These providers handle all the legal aspects of music licensing, offering peace of mind and allowing business owners to focus on their core operations. Professional music providers offer several benefits:
What Is the Best Music for a Business Provider?
When it comes to choosing the best music provider for your business, Mood Media stands out as a leader in the industry. Here’s why:
Conclusion
Playing music in your business can significantly enhance the customer experience, but it comes with important legal responsibilities. Using unlicensed music can lead to severe financial penalties and legal complications. By obtaining the necessary music licenses and partnering with a professional music provider like Mood Media, you can enjoy the benefits of music while ensuring compliance with copyright laws.
- Understand Public Performance Rights: Recognize that playing music in your business is considered a public performance and requires proper licensing.
- Avoid Personal Streaming Services: Personal streaming services are not licensed for business use. Opt for commercial music services instead.
- Obtain Proper Licenses: Contact PROs and use professional music providers to secure the necessary licenses for your business.
- Choose the Best Provider: Mood Media offers a comprehensive, legally compliant solution for your business’s music needs.
By following these guidelines, you can create a vibrant and inviting atmosphere in your business with music, while staying on the right side of the law.
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