Music Licensing
For Business
Most music is copyrighted and illegal to play without the right permissions.
Music licensing for businesses gives permission to use copyrighted music in commercial settings, such as retail stores, restaurants, or other public venues, while avoiding costly fines.
In need of fully-licensed music for your business? Contact us today.
Why is music licensing important?
It is important to use properly licensed music for businesses. Using copyrighted music without permission can result in legal consequences and potential fines. When playing music in your business, you can’t just plug an aux cable into your phone and call it a day. By obtaining the appropriate licenses, you can ensure your business is legally playing music and avoid potential legal issues.
What are PROs?
Several organizations offer music licensing for businesses, including performance rights organizations (PROs) like ASCAP, BMI, GMR & SESAC. These organizations work with music creators and publishers to collect and distribute royalties to them when their music is publicly performed, such as in a business setting. Businesses can obtain licenses from these organizations to legally use their music catalog.
What is the cost of a music license for my business?
The cost of music licenses can vary based on factors such as the type of service the business provides.Fo r example, playing music in a retail store or a fitness class requires a different license than a live music performance or a DJ set. The cost of obtaining a license is often outweighed by the benefits of legally using music to enhance the customer experience and create a welcoming environment for patrons.
$750-$150,000
Amount in dollars per incident for unauthorized performances of musical works.
Here are a few examples of just how steep the fines can get.
- ASCAP sues Meadowlark Bar in Denver for $27,000
- Missouri bar closed after BMI lawsuit
- Green Knoll Grill in New Jersey was sued by BMI for more than $20,000.
- Vazzy’s Cucina in Connecticut paid $18,000 for illegally playing just nine unlicensed songs.
- 69 Taps in Ohio pays $1.5 million for a cover band playing only ten songs.
What is music licensing?
Music licensing is a legal process that obtains permission from the owner of a copyrighted musical composition for use. This permission is typically granted through a licensing agreement between the owner of the music, such as the record labels, publishers, artists, and writers, and the party seeking to use the music, like retail outlets, television, radio, and music venues.
There are many different types of music licenses, each of which grants rights and imposes restrictions on the use of the music. For example, a retail music license permits music to be played only in that environment and is limited to that commercial use.
Strategic music licensing
Music licensing strategically can be a complex process, requiring negotiations between the music’s owner and the licensee to determine the scope of the license and the appropriate compensation for the use of the music.
Licensing is an essential part of the music industry. It allows artists and creators to monetize their work and allows businesses and organizations to use music in their productions legally. You must have coverage from labels, publishers, and public performance organizations to play music legally. Streaming licenses are covered through SoundExchange, which offers coverage of musical content for non-interactive use. The user still must obtain public performance licenses.
Rights included music (Royalty Free)
Rights included music is when the owner of music content controls all the rights and has not registered the copyrights with any public performance societies. This limits the need to require a public performance license as long as the music played is not mixed with other copyright owners who have registered their content. They provide a direct license which allows for more flexibility in negotiating the terms of the license and may result in lower licensing fees compared to using a PRO.
Direct Licensing
Direct licensing with the content owner can be a more efficient and cost-effective way to obtain a license. With direct licensing, the licensee can negotiate directly with the music owner and work out an agreement that meets their specific needs and budget.
However, direct licensing can also be more complex and time-consuming than using a PRO. The licensee must identify the owner of the music they want to use, negotiate the terms, and ensure that all necessary permissions, royalty statements, and payments are made. This can be challenging, especially for smaller businesses or individuals without experience in music licensing.
How to get a music license
Companies like Mood Media specialize in providing background music for businesses. These companies help navigate legal complexities such as copyright laws and licensing fees. Working with a professional music provider is a great solution for many business owners, especially small businesses and franchise owners.
When working with a music provider, you can select music appropriate for your brand identity. Experts in the music industry work with your business to ensure that the music you play at your business fits the sound of your brand, engages your audience, and drives positive results.
Additionally, when choosing to work with a background music provider, your music is fully licensed, ad-free, and screened for inappropriate content and lyrics. This ensures your business plays music that is appropriate for all audiences.
Rights Inclusive music provides an alternative to a PRO and is a useful option for those who require more flexibility and customization in their music licensing arrangements.
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DO I NEED A MUSIC LICENSE FOR MY BUSINESS?
While you may pay for a personal subscription streaming service such as Apple Music or Spotify, those personal music services are <b>not</b> authorized for use in a commercial environment. To play music in-store or anywhere in public, a licensing fee is required.
amount of lost revenue due to unpaid licensing
Licensing fees
A licensing fee allows the artists, authors, composers, and publishers to be compensated for their music. These fees are handled by what are known as Performance Rights Organizations (PROs). The four biggest PROs are ASCAP, BMI, SESAC, and GMR. Businesses can be subject to significant fees and legal penalties if they don’t secure the proper rights to the music they play.
Supporting musicians
Aside from live shows and merchandise, licensing fees are one of the few ways artists can make money from their music. Not only is it illegal to play music that is not specifically licensed for business, but it also robs the artists and musicians of income that rightfully belongs to them. Over a billion dollars of revenue is lost from unlicensed music each year.
Artists deserve to be fairly compensated for the use of their work. Using a music source designed to provide music to businesses helps ensure the artist community is supported and your business is protected.
Before you connect your Bluetooth speakers and start playing your favorite playlist, cover your bases to avoid paying unwanted fines. Not only do you avoid hefty fines, but it’s the right thing to do.
Music Licensing Companies
Music licensing companies are organizations that represent the interests of music creators and publishers, and provide licenses for the use of their music. These companies work with businesses, film and television production companies, and other entities to obtain the necessary permissions to use copyrighted music legally.
There are several types of music licensing companies, including:
Music libraries: Music libraries are collections of pre-cleared music that can be licensed for use in various productions, such as films, television shows, commercials, and video games. Examples of music libraries include Audio Network, UPM, and Jingle Punks.
Sync licensing companies: Sync licensing companies specialize in licensing music for use in visual media, such as films, television shows, and commercials. They work with music creators and publishers to negotiate sync licenses that allow their music to be used in these productions. Examples of sync licensing companies include Musicbed, Songtradr, and Marmoset.
Overall, music licensing companies play an important role in the music industry. It facilites the legal use of copyrighted music and ensuring that music creators and publishers are properly compensated for their work.
What is ASCAP?
Founded in 1914, ASCAP stands for the American Society of Composers, Authors and Publishers. It is one of the leading performance rights organizations (PROs) in the United States, representing more than 750,000 music creators, including songwriters, composers, and music publishers. ASCAP represents a wide range of genres, including classical, jazz, and musical theater.
What is BMI?
Founded in 1939, BMI stands for Broadcast Music, Inc. It is one of the leading performance rights organizations (PROs) in the United States, representing over 1.1 million music creators, including songwriters, composers, and music publishers. BMI tends to have a stronger focus on popular music genres, such as rock, pop, hip-hop, and country.
What is SESAC?
SESAC (originally the Society of European Stage Authors and Composers) is a performance rights organization (PRO) in the United States. It represents over 30,000 music creators, including songwriters, composers, and music publishers. SESAC was founded in 1930.
What is GMR?
Global Music Rights, the first US PRO in nearly 75 years, was founded in 2013 by industry veteran Irving Azoff as an alternative to the traditional performance rights model.
What is SoundExchange?
SoundExchange is a non-profit performance rights organization (PRO) in the United States that collects and distributes digital performance royalties for sound recordings. It was created by the U.S. Congress in 1995 as a response to the rapid growth of digital music distribution.
SoundExchange collects royalties on behalf of recording artists and sound recording copyright owners (usually record labels) when their sound recordings are played on digital platforms such as internet radio, satellite radio, and music streaming services. It is responsible for tracking and collecting royalties for digital performances of sound recordings under the Digital Performance Right in Sound Recordings Act of 1995 and the Digital Millennium Copyright Act of 1998.
How to Get Licensed Music
To get licensed music, you need to obtain permission from the owner of the music (usually the Label, songwriter, or publisher) to use their music in the way that you intend to use it. Here are the general steps to follow:
Determine the type of license you need: There are various types of licenses for music, Master and mechanical licenses for reproducing and distributing music recordings, and public performance licenses. Determine which type of license you need based on how you plan to use the music.
Identify the owner of the music: Determine who owns the rights to the music you want to use. This can be done by researching the Label, songwriter, or publisher, or by using a music licensing company or service that can help you identify the owner.
Contact the owner of the music: Reach out to the owner of the music and explain the intended use of their music. Negotiate the terms of the license, including the scope of the license, the compensation or royalties to be paid, and any other terms or conditions.
Obtain the license: Once the terms have been agreed upon, obtain a written license agreement that outlines the terms of the license. Pay any necessary fees or royalties, and ensure that you have the proper documentation to prove that you have obtained the necessary license.
Businesses can work directly with a music licensing company or service, such as a performance rights organization (PRO) to obtain the necessary licenses for your intended use of the music. These organizations can help you identify the owner of the music, negotiate the terms of the license, and ensure that you have the proper documentation to legally use the music.
For businesses wishing to play music on-premise, owners may find that the best solution is to work with a music for business provider. A background music provider will not only deliver high-quality music that is deemed appropriate for business use, but will also handle the licensing and legal aspects necessary to broadcast music within your retail business.
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