Perspectives
Music Basics: What Small Businesses Need to Know About Music Licensing
When small busineses think about legal risk, music licensing rarely tops the list. But it should be on the radar.
From restaurants and bars to boutiques, fitness studios, salons, and event spaces, many businesses use music to create atmosphere, enhance customer experience, or support programming. What many don’t realize is that public music often requires proper licensing-and getting it wrong can lead to significant financial consequences.
This is one of those areas where proactive legal guidance can help businesses avoid costly compliance issues before they arise.
WFJ entertainment and business attorney Paige Kochanski breaks down what small business owners should know about music licensing compliance, common misconceptions, and where legal risk often hides.
“I’m Just Playing Music in My Business-Is That Really a Legal Issue?”
In many cases, yes. Federal copyright law requires businesses to obtain permission to publicly copyrighted music. That means even if you legally purchased a song or subscribe to a personal streaming service like Spotify or Apple Music, that does not automatically give your business the right to play that music publicly.
Those services are generally intended for private, personal listening-not commercial use.
The same issue can arise when live musicians are involved. Hiring a cover band or solo performer to play in your business does not necessarily eliminate your licensing obligations.
And depending on your business type-such as bar, restaurant, fitness studio, or entertainment venue-additional licensing considerations may apply.
What Happens If You Get it Wrong?
For many small business owners, music licensing is not something that was on the startup checklist. But overlooking it can become expensive. Statutory damages for willful copyright infringement under U.S. law can range from $750 to $150,000 per infringed work in addition to potential legal fees. That’s a significant risk for something many businesses may not realize requires legal attention in the first place.
Why One License Isn’t Enough
One of the most confusing parts of music licensing is that there is no single universal license that covers every song. That’s because music rights are often managed by Performing Rights Organizations (PROs), each of which represents different catalogs of artists and songwriters.
The major PROs include:
- ASCAP (American Society of Composers, Authors and Publishers)
- BMI (Broadcast Music, Inc.)
- SESAC
- Global Music Rights (GMR)
Because each organization controls different rights, businesses often need licensing coverage from multiple organizations to ensure compliance.
A common approach is obtaining blanket licenses throught the relevant PROs, which provides access to that organization’s catalog without requiring businesses to identify licensing rights for each individual song.
Simplifying the Complex for Small Businesses
Running a business already comes with enough complexity. Music licensing should not become an avoidable legal headache.
If your business uses music in any customer-facing setting, it’s worth making sure your practices align with applicable licensing requirements before a compliance issue becomes a costly dispute.
WFJ’s Entertainment Law team helps business and creatives navigate music law, contracts, copyright, publishing, licensing, and other entertainment-related legal matters with practical, accessible guidance.
Because legal compliance works best when it’s proactive-not reactive.
Paige Kochanski is an attorney in Wagner, Falconer & Judd’s entertainment law group. Her practice focuses on music, film, and creative content legal matters, including contracts, copyright, and licensing. She works with businesses and individuals to navigate entertainment law with clarity and confidence.