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How Businesses Can Legally Use Music

How Music Can Legally Use Music

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In today’s bustling business world, music plays a crucial role in enhancing customer experience, setting the mood, and even driving sales. However, using music in a business setting comes with legal responsibilities. Here’s a comprehensive guide on how businesses can legally use music. 

Understanding Copyright and Music Rights 

Copyright is a form of protection given to the creators of “original works of authorship,” including literary, dramatic, musical, and certain other intellectual works. It grants the creator exclusive rights to use and distribute their work, typically for a limited time. When an artist creates music, they automatically hold certain rights under copyright law. These rights include: 

  • Reproduction: The right to make copies of the music. 
  • Distribution: The right to distribute copies to the public. 
  • Public Performance: The right to perform the music publicly. 
  • Derivative Works: The right to create new works based on the original music. 

For businesses, the most relevant of these is the right to public performance. 

What Constitutes a Public Performance? 

A public performance occurs when music is played in a place where people other than the performer’s friends and family are present. This includes playing music in a salon while serving clients, using music at conferences or events, and playing music in restaurants, offices, or retail stores. Essentially, any setting where music is played to enhance the environment for customers or attendees, and where the audience is not limited to personal acquaintances, qualifies as a public performance. Understanding this distinction is crucial for businesses to ensure they are compliant with copyright laws and avoid potential legal issues. 

The Need for Licenses 

A license is a legal agreement that grants permission to use copyrighted material under specific conditions. To legally use music in a business setting, you need to obtain the appropriate licenses. The main types of licenses include: 

  1. Public Performance License: This license allows you to play music in public spaces. Organizations like ASCAP, BMI, and SESAC provide these licenses.
  2. Synchronization License: Required if you plan to sync music with visual content, such as promotional videos or commercials. Business owners can obtain synchronization licenses through performance rights organizations (PROs) like ASCAP, BMI, and SESAC, sync licensing agents, online licensing platforms such as Musicbed, Songtradr, and AudioJungle, or directly from copyright owners. 
  3. Commercial License: Necessary for any content that generates revenue for your business. This includes using music in advertisements or social media posts aimed at driving traffic to your website. Similar to synchronization licenses, commercial licenses can be obtained through PROs, licensing agents, online platforms, or directly from copyright owners. 

Royalty-Free Music 

An alternative to obtaining licenses for popular music is using royalty-free music. This type of music is available for use without ongoing fees, but it’s crucial to read the license carefully to ensure it covers your intended use.

Common Mistakes to Avoid 

Many businesses make the mistake of using personal accounts to access music for commercial purposes, which violates the terms of use. Additionally, adding music to content externally without a proper license can lead to significant legal issues. Another common error is ignoring platform rules; for instance, platforms like Spotify and Pandora offer commercial licenses, and selecting the incorrect license can result in infringement. These mistakes can be costly and time-consuming to rectify, emphasizing the importance of understanding and adhering to copyright laws and licensing requirements. 

The Importance of Compliance 

Failing to comply with copyright laws can result in legal action, including cease-and-desist letters and hefty fines. High-profile cases, such as those involving political figures using music without permission, highlight the importance of obtaining the necessary licenses. 

Conclusion 

Music is a powerful tool for businesses, but it must be used legally. By understanding copyright laws and obtaining the appropriate licenses, businesses can enhance their customer experience while respecting the rights of artists. Always consult with an attorney to ensure full compliance with copyright regulations.  If you are ready to speak with someone, request a call here.

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