Licensed Music for Business

Avoid Fines, Sound Great

You can’t just plug in Spotify or Apple Music to play music in your business. Protect yourself with the right legal music solutions. Let’s dig in.

Why You Can't Use Personal Music Apps (like Apple Music or Spotify) for Your Business

Many small business owners search for “Amazon Music for Business” or “Spotify for Business,” hoping for a simple upgrade. Unfortunately, these services don’t exist in that way for a specific legal reason.

The terms of service for personal streaming apps—including Spotify, Apple Music, and Amazon Music—explicitly state that their use is for personal, non-commercial, and non-public use only.

When you play music in your shop, café, or office, it’s considered a “public performance.” Using a personal app for this purpose is a breach of the service’s terms and, more importantly, a violation of U.S. copyright law. Consequently, you are left unprotected from legal action and significant fines.

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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.
BMI (Broadcast Music, Inc.): Another major organization, representing over 1.4 million songwriters and publishers.
SESAC (Society of European Stage Authors and Composers): A smaller, invitation-only PRO with a globally significant catalog.
GMR (Global Music Rights): A newer, boutique PRO that represents major chart-topping artists like Drake, Lizzo, and Bruce Springsteen.

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. A Denver bar was fined $27,000 for not maintaining its license. In another case, a New Jersey restaurant faced over $20,000 in fines. A background playlist of just 15 songs could, in theory, lead to fines of over $450,000.

Beyond the fines, you will also be responsible for legal fees, which can add up quickly and threaten your business’s survival.

What Your Background Music License Doesn't Cover

It’s also important to understand the limits of a standard business music license. These services are designed for playing background music (BGM) and typically do not cover:

Live music (such as a cover band or DJ)
Karaoke
Businesses that charge a cover fee or admission
Music played from other sources (like a personal CD, radio, or TV)
Music for your website or social media ads

If your business has these specific needs, you will likely require additional, separate licenses.

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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.

The Smart Solution: Bundled Music for Business Providers

Given the complexity and cost of direct PRO licensing, the vast majority of small businesses opt for a dedicated licensed music for business provider.

These services simplify everything. They have already negotiated the complex agreements with all the major PROs (ASCAP, BMI, SESAC, GMR) and international organizations.

In short, you pay a monthly subscription fee. In return, you get:

Full legal compliance and peace of mind.
Access to millions of popular and curated tracks.
Ad-free playback designed for a commercial environment.
A single, simple agreement that covers all your background music needs.

Choosing a vetted service handles all the legal legwork, ensuring you’re compliant, the artists are paid fairly, and you can focus on what you do best: running your business.

We offer the most robust tool to compare music for business providers for your reference.

FAQ: Licensed Music for Business Explained

Q: Why can’t I just use my personal Spotify or Apple Music account in my business?

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.

Q: What do I do if ASCAP or BMI contacts my business?

First, don’t ignore the letter or call. Second, verify the representative is a legitimate employee of that PRO (you can call the organization’s main office). They are likely informing you of your legal duty to license their music. Your best response is to 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 business service immediately.

Q: Do I really need licenses from all four PROs (ASCAP, BMI, SESAC, and GMR)?

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)?

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: Is music for my gym’s group fitness class covered by a background music license?

This is a gray area and often requires a specific type of “fitness class” license. The rhythm and public-facing nature of the class can be seen as a core part of the product, not just “background” ambiance. You should check with any potential provider to see if they specifically cover group fitness.

Q: Can I use my business music subscription for the music on my website or Instagram posts?

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.

Q: What’s the difference between a business music service and “royalty-free” music?

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.