Playing music in your business? Get your licensing sorted
Music can be a powerful tool in creating the right atmosphere for your business, whether it’s a bustling café or a serene salon. However, it’s important to understand that most music is legally protected by copyright, meaning businesses need permission or a licence to play it in public settings. Here’s what you need to know about obtaining a music licence, ensuring compliance with the law, and supporting music creators.
Why you need a licence
When music is played in public spaces like businesses, it’s considered a public performance, which requires permission from the copyright owners. This is different from playing music at home, where no licence is needed. Failing to comply with this requirement can lead to legal action and potentially hefty fines. In fact, in 2018, a Melbourne bar owner was ordered to pay nearly $200,000 in damages for playing music without the proper licence.
Licensing your music use
Getting a music licence can be straightforward. You could contact each song’s copyright holder directly, but this could be an overwhelming task! A more efficient option is to obtain a licence through a music rights organisation such as OneMusic, which is a joint initiative of APRA AMCOS (the Australian Performing Rights Association and Australasian Mechanical Copyright Society) and PPCA (the Phonographic Performance Company of Australia).
OneMusic can provide a single licence covering the majority of commercially available music, simplifying the process for businesses. A public performance music licence is the most common when playing music for customers or staff, and is usually held by shops, bars, cafes, gyms, salons and museums, among many others.
Cost and tax considerations
The cost of a music licence varies based on your business type, size and how you use the music. Licences can start as low as $100 per year for small businesses, like a retail store under 50 square metres playing radio or TV. Larger businesses or those using streaming services may pay more.
Some small businesses may qualify for a complimentary licence as long as they employ fewer than 20 people; play music only through one radio or TV device, or via employee headphones; and, importantly, don’t play music for customers or the general public.
Music licence fees, like other business expenses, can generally be claimed as a tax deduction as long they are directly related to earning your assessable income. Speak with your accountant, and make sure to keep clear records about your licence fee payments.
Supporting music creators
By obtaining a licence, you ensure that music creators are compensated for their work. Licence fees collected by OneMusic are distributed to the rights holders, supporting songwriters, composers, and performers. Approximately 85% of collected fees are paid out to these individuals, helping sustain the creative industry.
Practical steps for compliance
To ensure compliance, review the type of music you play and the source. If you use music from a background music supplier, check if they cover your OneMusic licence fees. If not, or if you use music from other sources, you’ll need to obtain a licence directly. Also, if your business has multiple locations, each one must be licensed.
By understanding and fulfilling your music licensing obligations, you can play music confidently in your business, create an inviting environment, and support creative artists – sounds good!
Source: https://business.gov.au/legal/playing-music-in-your-business
https://onemusic.com.au/