Music licensing for businesses in Canada
Canadian businesses need two kinds of public performance licence: one for compositions and one for recordings. SoundMachine includes both for background music.
Included with SoundMachine
SOCAN and Re:Sound public performance licensing for background music played through SoundMachine.
SOCAN
Re:Sound
Why you can't use personal streaming services
Consumer streaming services such as Spotify, Apple Music and Amazon Music are licensed for personal, private use only. Playing them in a business counts as a public performance, which needs separate licensing and breaches the services' terms.
Canadian performing rights organisations actively monitor compliance so that music creators are paid.
Canada's two licensing bodies
Businesses licensing directly typically need licences from both.
- SOCANCovers composers, songwriters and music publishers for the public performance of musical works, live or recorded.
- Re:SoundRepresents performers and record labels for recorded music played in public.
Three kinds of music rights
- 1
Recording (master) rights
A specific recording of a song, as performed by a particular artist.
Record labels and performers - 2
Publishing rights
The underlying composition, meaning the melody and lyrics, whoever performs it.
Songwriters, composers and publishers - 3
Public performance rights
Permission to play music in a public or commercial space. This is the right that matters most to business owners.
Performing rights organisations (PROs)
In Canada, public performance of the composition is licensed by SOCAN, and the recording by Re:Sound. SoundMachine includes both for background music.
Licensing directly vs SoundMachine
Typical annual cost for one small location.
- SOCAN from ~CA$150
- Re:Sound from ~CA$140
SoundMachine includes: SOCAN and Re:Sound for background music, plus the full SoundMachine platform.
Direct licence fees rise for larger venues, live music and dance floors, and don't include a music service.
What the licences don't cover
SoundMachine's US and Canadian licences cover background music played through SoundMachine. These uses need separate licences:
- Live bands and performers
- DJs
- Karaoke
- Venues charging a cover or entry fee
- Other sources: radio, TV, CDs, MP3 players
Not sure about your venue? Ask our support team. They can point you to a music rights specialist.
What the Copyright Act says
Under Canada's Copyright Act, playing music in public without the correct licence is copyright infringement. Music bought or streamed for personal use doesn't cover business use. Public performance licences are mandatory unless you only play royalty-free or out-of-copyright works.
Both licences, one subscription
SoundMachine's annual licence, which includes SOCAN and Re:Sound public performance licensing for background music, is around CA$400 a year, with the full platform included.
What does SOCAN cost if I license directly?
For background music in small shops or restaurants, SOCAN licences generally start around CA$150–200 a year per location. Larger venues and businesses with live music or dance floors pay more.
And Re:Sound?
Re:Sound is usually paid alongside SOCAN. Most small businesses pay CA$140–300 a year, scaling with business type, floor space and how music is used.
Is anything not covered?
Yes. Live events, karaoke, DJs, venues charging admission and music from other sources need additional licences.
More licensing guides
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