Legal music for business means music that is properly licensed for public or commercial playback. If music can be heard by customers, clients, staff, or the public inside your business, it is no longer considered personal listening. It becomes a regulated business activity. In a business setting, you must obtain a music license to play music legally and ensure compliance with copyright law.
For many business owners, this realization comes late. Music often feels harmless. Someone plugs in a playlist, the space feels better, and everyone moves on. But music in a commercial setting is governed by copyright law, and using unlicensed music can expose your business to unnecessary risk, inconsistent customer experiences, and potential fines. A public performance license is required for any music played in a business setting to avoid legal issues.
This guide explains how to obtain legal music for commercial business use in clear, practical terms. It addresses common misconceptions, outlines the three main paths to compliance, and walks you through a repeatable process you can follow whether you have one location or hundreds. To play music in-store or anywhere in public, a licensing fee is required.
What “legal music for business” actually means, and why it matters
Legal music for business refers to music that is cleared for public performance in a commercial setting. Public performance simply means music that can be heard by people outside of private, personal use.
If customers, clients, members, or guests can hear music in your space, it almost always qualifies as a public performance. This includes retail stores, restaurants, gyms, hotels, offices, medical practices, and any other customer-facing business environment.
The key difference between personal listening and commercial playback is intent and audience. Personal music is licensed for individual enjoyment. Music played in a business environment must be specifically licensed for commercial use to ensure compliance, support artists, and avoid legal issues. Music played in a business environment supports an experience, reinforces brand identity, and influences customer behavior.
What is at stake goes far beyond fines. Playing unlicensed music introduces avoidable business risk, weakens brand consistency, and creates operational problems as businesses grow. Using consumer music services like Spotify or Apple Music for business purposes is illegal and can lead to fines. When music is handled correctly, it becomes intentional. You can select the right background music, schedule music by time of day, and ensure every location sounds the way it should.
From an SME perspective, compliance enables better music decisions. When licensing is handled properly, businesses stop reacting and start designing the experience on purpose.
Common misconceptions that get businesses into trouble
Most businesses do not intentionally ignore licensing. They misunderstand it.
One of the most common misconceptions is that paying for a personal music subscription, such as a monthly subscription, makes business use acceptable. In most cases, it does not. Spotify, Apple Music, and YouTube Music are licensed for personal use only. Playing them in a commercial setting is considered unlicensed music, even if the account is paid and ads are removed. In fact, many music streaming services like Spotify and Apple Music are not legally permitted for business or public use.
Radio and television create similar confusion. While broadcasters hold licenses to transmit music, those licenses do not automatically extend to businesses that play those broadcasts publicly.
Royalty-free music is another area of misunderstanding. Royalty-free does not mean rule-free. It describes a licensing structure, not the absence of ownership. Terms still define where music can be played, how many locations are covered, and how long the license lasts.
Volume and staff-only myths persist as well. Playing music quietly or claiming it is for employees only does not automatically exempt a business. Exemptions are narrow and highly context-specific.
The types of music rights and licenses businesses may need
Music licensing involves multiple rights, but the concepts can be understood without legal complexity.
Performance rights organizations represent songwriters, composers, and music publishers and manage public performance licenses on their behalf. These organizations collect license fees when copyrighted music is publicly performed. Performance rights organizations (PROs) collect and distribute royalties to music creators and publishers when their music is publicly performed.
Different business activities may trigger different licensing needs. Background music in a retail store is different from live music, fitness classes, DJs, or on-hold music. Each use case matters.
Marketing, video, and audiovisual uses fall into a separate category and often require additional rights beyond public performance.
A simple decision framework is to ask where music is played, who hears it, and whether it is recorded or live. The more public and structured the use, the more important proper licensing becomes.
Option 1: Use a licensed music-for-business provider
For many businesses, the simplest and safest path to legal music for business is using a licensed music provider designed specifically for commercial use.
This approach bundles properly licensed music, playback technology, and management tools into one solution. Instead of tracking multiple agreements, businesses use licensed music for commercial use through a single music provider.
When evaluating a provider, businesses should confirm licensing coverage, catalog quality, curated stations, custom mixes, scheduling tools, and support for multiple locations. Centralized control is critical for growing brands.
Music selection should support brand identity and customer experience. Dayparts, seasons, promotions, and customer flow all benefit from intentional curation rather than static playlists.
Custom Channels is an example of a guided, done-for-you provider that combines compliance with brand-focused music design. The goal is not just legal coverage, but helping businesses sound consistent, appropriate, and engaging across every location.
Option 2: License music directly when more control is required
Some businesses choose to license music directly when they require highly customized programming or host special events. In these cases, it is necessary to obtain a music license directly from rights holders to ensure legal music for business use.
Direct licensing involves working with licensing companies and performance rights organizations, managing multiple agreements, tracking renewals, and monitoring coverage over time. ASCAP, BMI, and SESAC are Performing Rights Organizations where businesses can find rights holders to request licenses. While this can provide control, it requires ongoing administrative effort.
Cost drivers typically include venue type, square footage, occupancy, operating hours, and location footprint. Licensing directly with a single organization can also create coverage gaps if artists move between organizations or are not represented.
From an SME perspective, direct licensing can work, but it often becomes difficult to manage without centralized systems. Businesses still need clean, appropriate music libraries with enough variety to avoid repetition, especially in long operating hours.
Option 3: Use royalty-free music carefully and intentionally
Royalty-free music could be a viable option in certain business environments, but it should be used carefully and with clear expectations. Royalty-free refers to a licensing model, not the absence of rules or ownership. Businesses must still verify commercial playback rights, locations covered, term length, and proof of license before using royalty-free music in a commercial setting.
In practice, royalty-free music is a “you get what you pay for” option. It usually consists of background sounds or instrumental tracks, not songs people recognize or connect with. Your customers are unlikely to ever have an “I love this song” moment because the music is designed to blend in, not stand out.
Royalty-free music can work in offices, low-traffic areas, or very specific concepts where familiarity does not matter. Even then, businesses still have to manage how the music is played, what devices it runs on, and how it stays consistent across multiple locations. Without careful planning, repetition and operational headaches can show up quickly, especially during long operating hours.
Step-by-step: How to obtain legal music for commercial business use
Step 1: Map every music touchpoint
Identify where music plays, when it plays, who hears it, and how many zones or locations are involved. Consider the right tone for your business environment to create the desired atmosphere for customers and staff.
Step 2: Choose the compliance path that fits reality
Decide whether a provider, direct licensing, or royalty-free music aligns with your operational resources.
Step 3: Implement correctly
Use approved accounts and devices. Control staff access. Schedule music intentionally. Ensure network reliability. Using a music source designed to provide music to businesses helps ensure the artist community is supported and your business is protected.
Step 4: Document and maintain compliance
Keep contracts, invoices, license records, and renewal reminders. Review periodically as the business evolves.
Costs, exemptions, and compliance gotchas to plan for
Pricing and complexity depend on space size, usage type, and the number of locations. Multi-location businesses should standardize tools and training to prevent personal music streaming services from reappearing. Professional music services are especially beneficial for small businesses, helping them navigate licensing laws and curate music that fits their brand and audience.
Tracking song plays is important to ensure legal compliance and fair payment to music creators. The cost of obtaining a music license is often outweighed by the benefits of legally using music to enhance the customer experience. Artists deserve to be fairly compensated for the use of their work, and licensing fees are one of the few ways they can make money from their music.
Exemptions exist but are limited. Always confirm what applies to your specific commercial setting.
Reusable compliance checklist:
- Approved music sources only
- Locked-down playback devices
- Centralized control and visibility
- Regular reviews and updates
For deeper guidance, explore our music licensing guides and overview of licensed music for business.
Make compliance easy and make your space sound better
Legal music for business does not require becoming a licensing expert. However, it is essential to obtain a music license to legally play copyrighted music in your establishment. In the United States, businesses must obtain rights from organizations like ASCAP and BMI to ensure legal compliance when using copyrighted music. It requires understanding your use case, choosing a compliant source, and maintaining clear systems.
When done right, music becomes a brand asset. It enhances customer experience, supports brand identity, and eliminates unnecessary risk.
If you want help building a compliant, brand-right music plan that scales, Custom Channels can guide you through the process. You can also review our music for business comparison to understand how options stack up.
Frequently Asked Questions
How can I legally play music in my business?
By using properly licensed music through a business music provider, direct licensing, or verified royalty-free sources, you ensure your business has a valid music license. In the United States, businesses must obtain rights from organizations like ASCAP and BMI to legally play copyrighted music.
What music can I play at my business?
Music that is licensed for public performance in your specific business environment. In most cases, you are required to obtain a public performance license from a licensing organization to legally play copyrighted music in your business.
Can I legally play Spotify in my business?
No. Spotify is licensed for personal use only and is not legal for commercial business use.
What music can I use for commercial use?
Properly licensed music, royalty-free music with verified commercial rights, or music provided by licensed business music services.
Written by Mark Willett, Head of Partnerships, Custom Channels
Reviewed by Josh Torrison, Head of Marketing, Custom Channels
Josh Torrison has spent nearly a decade at Custom Channels helping national brands manage music compliance, curate on-brand sound, and resolve licensing questions across retail, hospitality, and restaurant environments.
