Playing music in your business can be an excellent way to create the ambiance you’re going for, to keep employees motivated, and even to increase sales if used correctly.
When thinking about adding background or live music to your business, one thing to consider is the legality of playing your music. This might seem like overkill, but playing music without first obtaining a proper license can violate copyright laws and lead to messy and expensive legal disputes -- or worse.
So let’s get down to it: what can you play? What services can you use? What resources are available and what are the consequences if you don’t pay licensing fees? Many small businesses haven’t considered these questions - but don’t worry! We’ll get you started with the basics, and show you where you can go for more info.
Why do you have to pay licensing fees for music? 🤔
Just like books, songs have copyrights to protect their authors. There are a few main Performance Rights Organizations (PROs) that represent songwriters: BMI, ASCAP, and SESAC. These groups protect the intellectual property of songwriters and performers, and in many cases they are the entities who collect licensing fees. For more information on obtaining a license from these entities directly, check out the websites for BMI, ASCAP, and SESAC. A great alternative, however, is to use a music streaming platform that’s licensed for commercial use. We’ve compiled a list of those further down on the page.
Does everyone have to pay licensing fees? 💵
The short answer: not necessarily.
Under the Copyright Act, businesses with small footprints (stores under 2,000 square feet, restaurants or bars under 3,750 square feet—excluding parking lots) are allowed to play music from traditional radio broadcasts without a license provided that customers are not charged for the service. Businesses with larger footprints may also fall within that exception if they meet additional limitations on the number and placement of speakers, i.e., that there are no more than six speakers and that no more than four speakers are located in any one room or space.
So if you fall into one of these categories and want to play traditional radio broadcasts - great! You might be all set, but do keep in mind that this exception probably does not apply to webcasts, satellite radio, or other digital music services. Before deciding whether you fit into any of these exceptions, it’s best to check with a lawyer.
It also depends on how you’re playing your music. If you’re using a streaming service provider that covers the licensing fees for you, then you don’t need to pay licensing fees separately. In order to figure out if your music provider covers these types of fees, make sure to check your Terms of Service.
Which streaming music providers cover licensing fees on your behalf? ✅
One easy way to make sure you’re covered is to play music through a service that covers the licensing fees on your behalf. We did a search of the terms of service for a few popular music providers and found out the following.
These services do allow commercial use with business plans:
A lot of these services also have free trials, so it could be worthwhile to check them out and see which you like best, as they have different playlists to choose from.
These services are available only for noncommercial, personal use:
Resources for more information 👀
Check out these websites to learn more about the rules around playing music in your business - not the most exciting research project, but a necessary one!
Disclaimer: As with all our of our posts, this content contains general information and guidance only, and is not a substitute for legal advice. For advice specific to your area or business, be sure to consult with a qualified professional.
I hope this was helpful! We want to make sure that as a Square Seller, you’re not caught off guard with any legal issues. If you’re playing music in your business, what service do you use? Had you thought about these issues already, and how did you make sure you’re on the right side of the law?
