Playing music in your business has many benefits. From helping to create the right ambience and first impressions to encouraging your teams to work more productively. However, as a business owner, you need to make sure you’re playing background music legally. So that it doesn’t turn into a costly expense as a result of a fine from the licensing authorities.
This article looks at when you need a music licence to play music in your business and explores the legal alternative.
What is a Music Licence?
Music is a key tool in all businesses. It boosts staff morale and motivation and is a great tool for enhancing customer experience. Helping them to feel confident and relaxed in your business.
However, playing music in a business is not as simple as pressing play as you do at home. PPL PRS is the body that collects licence fees from businesses playing copyrighted music. It distributes payments to the artists, record companies, composers, songwriters and publishers who created the music.
This ensures the legal owners and creators of the music are paid for it being played in public.
When Do I Need a Music Licence?
If you are playing music in your business via TV, radio or a streaming service you will need to buy a licence. That’s because when you play music in a business, it’s a ‘public performance’ of the music.
Under the Copyright, Designs and Patents Act 1988 you must have the copyright holder’s permission to perform (play) their music in public. A music licence gives you permission on behalf of the copyright holder to play their music in public. Whether that’s for staff and/or your customers. For artists and music registered with them as a collection agency.
Who Operates the Music Licence?
The Music Licence is operated by PPL and PRS. Together they collect the licence fees (and fines from those playing the music illegally) from businesses playing copyrighted music. They then distribute payments to the copyright holders.
Do I Need a Licence if I Only Play Radio?
Yes, you still need to buy a licence if you play a radio in your business. Whilst radio stations pay royalty payments to allow them to broadcast the music, this payment does not cover the public performance of the music. This is the responsibility of the individual business owner.
This also applies if you only listen to talk shows as music may appear in jingles and adverts played on the shows you listen to.
What if I Have a TV Licence?
A TV licence covers you receiving the broadcast, not the music contained in the programs and adverts. As a result, you will need to purchase a music licence if the TV is used on your business premises.
What Happens if I Play Music Without a Licence?
PRS and PPL are very proactive when it comes to checking music usage in businesses. They frequently visit premises and make calls to staff to confirm if music is being played. If you’re caught playing music without a licence a surcharge will be added to your invoice which could run into thousands of pounds. You could also face legal action if you play copyrighted music without the correct type of licence.
How Much Does a Music Licence Cost?
The cost varies depending on the type of business you operate and the size of the audible area. That’s the amount of sq meters in your business customers and/or staff can hear the music played.
Here’s a cost example using the smallest audible area (up to 50 sq meters) in a shop or store. The total amount you pay is the combined total of the PPL and PRS tariffs.
Music Licence cost for shop UNDER 50sq m: £330.50 plus VAT
How Long Does a Music Licence Last?
The licence lasts for one year from the day you buy it. Most business owners find they are automatically invoiced year after year. If you decide to move to a different way of playing music in your business, you need to ensure you provide PPL PRS with sufficient notice.
What is the Alternative?
The good news is there is a way of playing music in your business without having to buy a licence. Royalty-free or licence-free music can be played legally without a PRS PPL licence in any business. This is because they do not collect royalty payments for those artists.
Instead, they receive payment via a music licensing company. Many artists opt for this way of distributing their music for several reasons. The main one is that they have more ways to monetise their work and thus can make more money.
Background Sounds: Experts in Royalty-Free Music
At Background Sounds we’re passionate about helping you find the right licence-free music for your business. We specialise in providing an affordable music library for small business owners, giving them a huge range of music to choose from.
We’ve worked in the background music industry for over a decade and are dedicated to making it easy for small business owners to play great music in a way that doesn’t break the bank.
Our service gives you PPL PRS-free music which saves you money compared to having a music licence. Whilst still providing you with high-quality tracks so you can create the perfect atmosphere in your business. Savings range from a few pounds to hundreds depending on the size and type of business.
With over 50 playlists from Jazz to classical and pop, you’ll find the type of music that’s perfect for your business. Whether that’s hospitality, medical, retail or office-based.
But don’t just take our word for it, try our music for free for 7 days and see how it helps you create the right atmosphere for your business.
