Music licensing for businesses in the United States
In the US, playing music in a commercial space needs public performance licences, and no single organisation covers every song. SoundMachine includes all four PROs in every US plan.
Included with SoundMachine
ASCAP, BMI, SESAC and GMR public performance licences for background music played through SoundMachine at your registered US locations.
ASCAP
BMI
SESAC
GMR
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.
Businesses have been fined thousands of dollars for playing music without the right licences, through lawsuits brought by US performing rights organisations (PROs).
What US copyright law says
Title 17 of the U.S. Code governs how music can be used. In practice:
- Unlicensed public play is infringementPlaying music in a public space without the correct licence is copyright infringement.
- Buying a song isn't a business licenceMusic bought or streamed legally for personal use is still not licensed for business use.
- Licences are mandatoryPublic performance licences are required unless you use a commercial music service that includes them.
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)
Why one licence isn't enough
Each PRO represents different songwriters. Switch licences on and off to see how much of a typical 12-song playlist you'd actually be covered for.
- 01Golden Hour DriveThe Pale CoastBMI
- 02Paper LanternsMila RhodesASCAP
- 03Somewhere BrighterJuniper LaneBMI
- 04Velvet MorningOtis CallowayASCAP
- 05Slow TideHarbour LightsSESAC
- 06Northern StaticAda & the WiresBMI
- 07LinenSoleil ParkASCAP
- 08Late BloomTheo MarshGMR
- 09Copper SkyThe FairweathersBMI
- 10Common GroundNina OkaforASCAP
- 11Blue HourMarlow & FinchBMI
- 12Wildflower RadioJune AshbyASCAP
Licensing directly vs SoundMachine
Typical annual cost for one small location.
- ASCAP from ~$390
- BMI from $250
- SESAC rate not published
- GMR rate not published
SoundMachine includes: All four US PROs for background music, plus stations, scheduling, messaging and integrations.
Plus a commercial music service and hardware, which direct licences don't include.
What could an unlicensed playlist cost?
US statutory damages for copyright infringement range from $750 to $150,000 per song, depending on whether the infringement is found to be willful.
9,277× the cost of a year of SoundMachine Business, from $323.40.
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.
US PROs at a glance
Each PRO represents different songwriters and catalogues, so businesses licensing directly often need several licences.
| ASCAP | BMI | SESAC | GMR | |
|---|---|---|---|---|
| Structure | Member-owned nonprofit | For-profit | For-profit, invitation-only | For-profit, invitation-only |
| Founded | 1914 | 1939 | 1930 | 2013 |
| Members | 1 million+ | 1.4 million+ | 15,000+ | Curated roster |
| Catalogue | ~20 million works | ~22.4 million works | ~1.5 million works | ~111,000 works |
| Typical direct cost | From ~$390/yr | $250–$2,000/yr | Not published | Not published |
One subscription instead of four agreements
For $323.40 a year (Business, billed annually) you get public performance licensing from ASCAP, BMI, SESAC and GMR for background music, plus curated stations, playlist tools, scheduling and compatibility with systems like Sonos and Crestron.
Which PROs does SoundMachine include in the US?
All four: ASCAP, BMI, SESAC and GMR. Coverage applies to background music played through SoundMachine at your registered US locations, as set out in our Terms of Service.
Why would I need more than one licence if I licensed directly?
No single PRO covers the whole music industry. A playlist mixing songs represented by different PROs needs a licence from each of them, and missing one can lead to legal claims.
Does it cover live music, DJs or karaoke?
No. Those uses, and events that charge admission, need separate licences arranged directly with the relevant PROs.
More licensing guides
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