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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.

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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

Public Performance License: Required for playing music in public spaces, including businesses.
Mechanical License: Required for recording and distributing music.
Synchronization License: Needed for using music in conjunction with visual media, such as in videos or advertisements.
Master Use License: Grants the right to use a specific recorded version of a song.

Fines and Fees: The Consequences of Playing Unlicensed Music

The cost of playing unlicensed music in your business can be substantial. Fines can range from a few thousand to hundreds of thousands of dollars, depending on the extent of the infringement. Here’s a look at some examples of businesses that have faced significant penalties:

  • 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:

1. Identify Your Needs: Determine the scope and nature of your music use. Will you be playing background music, hosting live performances, or using music in advertisements? This will help you understand the types of licenses you need.
2. Contact Performance Rights Organizations: Reach out to PROs like ASCAP, BMI, and SESAC to obtain public performance licenses. Each organization represents different catalogues of music, so you may need licenses from multiple PROs to cover all the music you plan to play.
3. Use a Commercial Music Service: Consider subscribing to a commercial music service designed for business use. These services handle the licensing for you, ensuring that you are compliant with copyright laws.
4. Keep Records: Maintain documentation of your licenses and any communications with PROs. This can be crucial if you ever face a compliance check or legal issue.

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:

Legal Compliance: They ensure that all the music you play is properly licensed, protecting you from fines and legal issues.
Curated Playlists: Professional music providers offer expertly curated playlists that can enhance your business’s atmosphere and brand identity.
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Customization: Many providers offer customization options, allowing you to tailor the music to your specific business needs and customer preferences.
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Quality and Variety: Access to high-quality music and a diverse selection of genres ensures that you can always find the right music for your business.

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:

Extensive Music Library: Mood Media offers a vast library of licensed music, ensuring a wide variety of genres and styles to suit any business environment.
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Customization: With Mood Media, you can create customized playlists that reflect your brand’s identity and enhance the customer experience.
Expert Curation: The service provides expertly curated playlists, crafted by professional music programmers who understand how to use music to influence customer behavior and create the desired atmosphere.
Comprehensive Licensing: Mood Media handles all licensing requirements, ensuring that you are fully compliant with copyright laws and protected from potential fines and legal issues.
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Additional Services: In addition to music, Mood Media offers other sensory marketing solutions, such as digital signage, scent marketing, and interactive mobile solutions, providing a holistic approach to enhancing the customer experience.
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Proven Track Record: Mood Media supports music for more than 500,000 locations, including major brands such as Starbucks, Mcdonald’s, and Mariott, just to name a few.

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.

In summary:

  • 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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