Business Music Licensing Checker
What music licensing do you need? We can help.
Navigating commercial music licensing is more complicated than most business owners expect, and the penalties for copyright infringement are severe.
Whether you need a commercial background music service or direct PRO licenses (ASCAP, BMI, SESAC, GMR) for live bands, karaoke or DJs, our free Business Music Licensing Checker will generate your custom compliance checklist in under a minute.
Get Your Custom Music Licensing Checklist
Tell us how you use music in your venue, whether that’s streaming background music, karaoke, live music, or DJs. Then use our interactive checker below to instantly identify which commercial services and PRO licenses you need to stay 100% compliant. It only takes 1 minute!
Simply fill in your business details to learn your business music licensing needs.
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Why You Can't Use Personal Music Apps for Your Business
Many business owners want to use the apps they already know and love. They look for options like “Spotify for Business” or “Apple Music for Business.” They hope for a quick, simple upgrade. Sadly, it is not that easy.
You cannot use a personal music app to play music in your shop, café, or restaurant. Doing so breaks the app’s rules and U.S. copyright law.
Personal Use vs. Commercial Rules
A standard music app streaming account like Spotify or Amazon Music is only for your private, personal life. The cost of your monthly plan only covers personal listening.
When you play music in a public business, the law calls it a “public performance.” To do this legally, a business must pay for commercial rights. You need licenses from groups like ASCAP, BMI, SESAC, and GMR. Personal apps do not include these commercial rights, they are great for your car or home, not for your business.
The Risk of Big Fines
Playing unlicensed music puts your business at risk of significant fines. Under copyright law, fines for playing music without a license can be massive. They can range from $750 to $150,000 for each song played. Music inspectors do visit businesses. Using a personal music app is a major risk that could cost hundreds of thousands of dollars. It’s just not worth the risk!
Rules for Specific Personal Music Apps
Every major music app forbids business use in its fine print. Click any app below to learn about its rules and find legal alternatives.
Spotify
Personal accounts not allowed in public spaces
Apple Music
Terms strictly ban public use
Amazon Music
Prime/Unlimited plans don't include commercial rights
Pandora
Consumer accounts are for personal use only
YouTube Music
Playing YouTube in your business is not legal
✓ To keep your business safe from fines, you need a real commercial music service. These B2B providers handle the licensing for you.
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What Is a "Public Performance" of Music?
Understanding why you need a license comes down to one key legal term: the “public performance.”
U.S. Copyright Law defines this broadly. A public performance occurs when you play music in a place “open to the public.” This clearly includes restaurants, retail stores, gyms, and salons.
Moreover, it also includes any place “where a substantial number of persons outside of a normal circle of a family and its social acquaintances is gathered.” This means that playing music in a private office, a breakroom for your employees, or a warehouse also qualifies as a public performance that requires licensing.
Understanding the Gatekeepers: Music's Performing Rights Organizations (PROs)
Music licensing in the United States is managed by a handful of key Performing Rights Organizations, or PROs. These groups represent songwriters, composers, and publishers, and their job is to collect and distribute royalties for public performances of their music.
The four main PROs in the U.S. are:
- ASCAP (American Society of Composers, Authors and Publishers): One of the largest, representing millions of songs and over 950,000 members. Learn more on our ASCAP Music License Guide.
- BMI (Broadcast Music, Inc.): Another major organization, representing over 1.4 million songwriters and publishers. Learn more on our BMI Music License Guide.
- SESAC (Society of European Stage Authors and Composers): A smaller, invitation-only PRO with a globally significant catalog. Learn more on our SESAC Music License Guide.
- GMR (Global Music Rights): A newer, boutique PRO that represents major chart-topping artists like Drake, Lizzo, and Bruce Springsteen. Learn more on our GMR Music License Guide.
- ALLTrack: Alltrack is a digital-first PRO focusing on the modern independent artist and represent popular artists such as No Doubt, MXPX and Future. They use advanced “fingerprinting” technology to ensure their 15,000+ creators are accurately paid when their music is performed. Learn more on our ALLTrack Music Licensing Guide.
The "Multiple License Problem" for Business Owners
Here is the critical detail: these organizations are competitors. A license from ASCAP does not cover music in the BMI, SESAC, or GMR catalogs.
Therefore, to be fully compliant, a business owner would have to license directly from all four PROs. This involves contacting each organization, navigating complex fee structures based on your business type, square footage, and speaker count, and managing four separate annual payments. For most small businesses, this process is too costly and time-consuming.
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The "Small Business Exemption": A Common (and Costly) Misconception
You may have heard of a “homestyle exemption” (officially Section 110(5) of the Copyright Act) that allows some small businesses to play music without a license. This is one of the most dangerous misconceptions for modern business owners.
This exemption was designed for businesses playing broadcast radio or TV. It has very strict requirements, including:
- Being under a certain size (e.g., 2,000 sq ft for a shop or 3,750 sq ft for a restaurant).
- Using a very limited number of speakers (no more than 6 total, with no more than 4 in one room).
- Using a single radio or television receiver.
Crucially, this exemption does not apply to music streamed from a personal service, phone, or computer. It was never intended to cover digital streaming, CDs, or MP3 playlists. Relying on this exemption while using a personal Spotify account is a direct path to a fine.
Basically, your business is not too small to be liable. Businesses of all sizes need a licensed music for business provider.
The Real Risks of Playing Unlicensed Music
Skipping the proper licenses might seem like a way to save money, but the consequences can be devastating. PROs actively protect their members’ work and employ “music police” who visit businesses to check for compliance.
If you are caught playing unlicensed music, the penalties are not a small slap on the wrist.
- Statutory damages range from $750 to $30,000 per song played.
- If the infringement is found to be “willful” (meaning you knew you should have a license and didn’t get one), those fines can escalate to $150,000 per song.
These are not empty threats – see documented federal cases against real small businesses like yours and what they cost.
Beyond the fines, you will also be responsible for legal fees, which can add up quickly and threaten your business’s survival.
Do You Need a Special Music License for Karaoke?
Hosting a karaoke night is a great way to pack your bar, brewery, or restaurant. It brings in a fun crowd and boosts drink sales. But before you hand over the microphone, you need to understand the rules. Karaoke music licensing is very different from standard background music licensing.
Many owners think their regular background music service covers karaoke. This is a common mistake. Services that provide fully licensed background music are amazing for everyday vibes. But they do not cover live singing or karaoke. They also do not cover displaying lyrics on a screen.
If you want to host karaoke legally, here is what your business really needs.
A Live Public Performance License from PROs
When a customer sings a song on your stage, the law counts it as a live performance. Your venue will need to pay the major Performing Rights Organizations. In the United States, these are ASCAP, BMI, SESAC, and GMR. A great background music service handles these fees for everyday recorded music. However, standard background licenses exclude live shows, DJs, and karaoke.
A Commercial Karaoke Service
You, or your Karaoke Jockey, cannot just play a normal song and let people sing over it. You also cannot pull up random lyric videos on YouTube. You must use a legal, commercial karaoke service. These commercial karaoke companies secure a very specific set of rights that allow a business to legally operate a karaoke night.
Specifically, they secure synchronization rights (the legal permission to display lyrics on a screen in time with the music) and commercial master rights for backing tracks. They also build in software features designed specifically for running a live event, such as singer rotation queues, key/tempo adjustments, and background filler music.
Venue Music Licensing Needs for a DJ
Hiring a DJ is a great way to build energy in a bar or club. Many owners assume their background music service covers a DJ night. It does not.
When a DJ plays recorded music for a crowd, the law treats it as a live show. Your venue must hold the correct licenses, not the DJ. Even if the DJ brings their own gear and songs, you take the legal risk for any unlicensed music. The law places the liability strictly on the business owner.
Individual PRO licenses for your venue
You need public performance licenses from ASCAP, BMI, SESAC, AllTrack, and GMR. These groups give your venue the right to host the music. The DJ does not buy these licenses; the legal duty falls completely on the venue. Commercial background music providers like Soundtrack Your Brand, SoundMachine, and others do not cover live DJs. You must buy these licenses straight from the PROs to stay safe.
A legally sourced music library
A DJ playing tracks from a personal Spotify account or an illegal MP3 folder creates major legal risk. Your PRO licenses cover the public performance, but the DJ must use legally sourced files. Ask your DJ to prove they use legally bought tracks or a professional DJ record pool.
Music Licensing Needs for Live Music
Live music is one of the best ways a venue can draw a crowd. Whether it is a cover band or an open mic night, the licensing rules can confuse many people.
Let’s be clear: the music licensing requirements fall to the venue, not the band. Under U.S. copyright law, the venue must get public performance licenses from the PROs for any music played on site.
Individual PRO licenses for your venue
When a band plays a hit song, the songwriter earns a royalty. Your venue must hold licenses from the PROs whose music is being played. A band playing rock, pop, and country is likely pulling from all four major groups. You never know what specific songs your live band will play, so you will need to get music licenses from all the PROs to make sure you’re covered legally.
Your background music provider doesn’t cover live music
If you have a legal music provider for your business that is played via your overhead speakers, that license is for background music only. It provides zero legal coverage for live shows taking place on your stage.
Original music doesn’t require PRO licensing
One exception: if a performer plays only their own original songs and owns the copyrights themselves, no PRO license is required for that specific performance. This applies to original artist showcases or songwriter nights. In practice, most live music venues cover a mix of original and cover songs, so you’ll still want PRO licenses in place.
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A Note for International Business Owners
While this guide focuses on U.S. copyright law, other countries have similar systems. An “absolute authority” on this topic must acknowledge them.
- In Canada, public performances are managed by SOCAN and Re:Sound.
- In the United Kingdom, licensing is handled by PRS (for songwriters) and PPL (for performers and labels).
If your business operates outside the U.S., you must check the specific requirements for your country.
FAQ: Small Business Music Licensing Explained
Q: Can I just use my personal Spotify or Apple Music account in my business?
A: No. Those services are licensed only for personal, non-commercial use. Their terms of service, along with U.S. Copyright Law, forbid their use for “public performances” in a business. Using them exposes you to fines from $750 to $150,000 per song. There are no Spotify for Business, Apple Music for Business or Amazon Music for Business services.
Q: What do I do if ASCAP or BMI contacts my business?
A: Act fast.
Don’t ignore the letter or call.
Verify the representative is a legitimate employee of that PRO (you can call the organization’s main office).
Provide them with your active subscription number from a licensed business music provider. If you don’t have one, you will need to either purchase direct licenses from them (and all other PROs) or sign up for a bundled music for business service immediately.
Q: Do I really need licenses from all the PROs (ASCAP, BMI, SESAC, AllTrack and GMR)?
A: Yes. To be fully covered for playing popular music, you must have licenses from all of them. An artist like Taylor Swift might be in one catalog, while an artist like Drake is in another. A bundled business music provider is the only solution that packages all four into one simple subscription.
Q: Do I need a license to play music just for my employees (e.g., in a breakroom or warehouse)?
A: Yes. A “public performance” is not just for customers. It includes any place where a “substantial number of persons” outside a family circle is gathered. An employee-only area still qualifies, and you are legally required to have a license.
Q: Can I use my business music subscription for the music on my website or Instagram posts?
A: No. A background music license is for “public performance” inside your physical location. Music used on a website or in a social media ad requires a separate, and much more complex, “synchronization license” (or “sync license”). Using popular music in a business-related social media post without a sync license can get your video taken down or your account flagged. Services like Epidemic Sound offer licensed music for social media.
Q: What’s the difference between a business music service and “royalty-free” music?
A: A licensed business service gives you legal access to popular, chart-topping artists (the same music you hear on the radio). “Royalty-free” music services provide a library of music (often instrumental) from independent artists. While royalty-free is a legal alternative and often cheaper, it does not allow you to play any well-known, popular songs.
Q: How much does a commercial music license cost for a small business?
A: Purchasing direct licenses from all four major PROs (ASCAP, BMI, SESAC, and GMR) can cost a single location anywhere from $1,000 to over $2,000 annually. However, subscribing to a commercially licensed background music service bundles these fees, typically costing between $25 to $50 per month.
Q: Do I need a music license if I just play the radio or a TV in my business?
A: In some cases, no. U.S. Copyright Law includes a ‘Homestyle Exemption’ that allows small businesses (under a specific square footage) to play standard AM/FM radio or broadcast TV without a license, provided they use consumer-grade equipment (e.g., no more than 4 speakers) and do not charge an admission fee.