Wondering why you can’t just plug your phone into the speaker and hit play on Spotify? It might seem harmless, but playing music in a commercial space without the right licenses is actually best avoided. Here’s what kind of licenses you need and why.
Why do I have to pay for a music license?
Think of it like this: when you play music for your customers, you’re sharing someone else’s creative work—and just like you’d expect to get paid for your job, musicians and artists deserve credit (and royalties) for theirs. That’s where music licensing comes in. Vellar Sound has this covered for you - all the music you play in your space is fully licensed and legally sound, thanks to our partnership with Soundtrack Your Brand (SYB).
What kind of license do I need to play music in a commercial establishment?
You need a Public Performance License to legally play music in a business setting. This covers the right to play music for public enjoyment, which includes background music, live performances, and radio or TV broadcasts.
- U.S and Canada - our partner SYB covers the necessary commercial music licenses for most venues in the U.S. This means you're covered per venue for playing licensed music without needing to get additional public performance licenses from Performing Rights Organisations like ASCAP or BMI.
- U.K - While you historically had to obtain separate PPL and PRS licenses, you can now do this with just one: TheMusicLicense, making it so much easier
- Outside of these countries, each country has its own Performing Rights Organisation (PRO). Vellar Sound can help you facilitate these conversations or you can locate your country’s PRO and contact details here. (link: https://help.soundtrackyourbrand.com/hc/en-us/articles/360033407611-List-of-local-PRO-s)
In addition to this, you need a license covering each royalty payment to the copyright holder - thankfully all of the music we curate for you is commercially licensed via SYB and is part of your paid subscription when you partner with Vellar Sound.
What could happen if I play music from my personal account in a commercial space?
Penalties for violating copyright and neighbouring rights laws vary by country, as copyright falls under civil law, which is highly localised. Typically, businesses caught playing music illegally face two types of fines. First, they’ll be required to pay double the amount of what a legal license would cost. Or they could receive a court-issued fine, which can range from hundreds to millions, depending on the business size, duration of infringement, and any intentional illegal actions.
In the UK, fines and fees for playing unlicensed music are managed by PPL and PRS for Music, the two main organisations responsible for licensing music in public venues. They work together through the joint venture PPL PRS Ltd. Public performance revenues collected by PPL and PRS have seen a strong post-COVID recovery, reaching around £111.7 million in 2023, including not only fines but also licensing fees from businesses that use music without proper authorisation.
While detailed breakdowns of fines specifically for unlicensed music are not easily available, it is clear that the majority of this amount comes from licensing fees collected from businesses like shops, bars, and restaurants, with some contributions from penalties for non-compliance. Fines for playing unlicensed music can range depending on the scale of the infringement and whether the business chooses to settle early or face court action
