Music creates atmosphere, influences purchasing behavior and is an indispensable part of many business models – from retail to gastronomy to fitness studios. But anyone using music in a public or commercial space must comply with certain legal requirements. This article explains how music licensing works, which rights play a role and what you should look out for when choosing a music service.
1. why is music in stores subject to licensing?
As soon as music is not only played in private, but also in public – i.e. is accessible to customers, guests or employees – copyright law applies. The composer, lyricist and performer of a piece of music has the exclusive right to decide on the use of their work and to receive remuneration for it.
Exemplary usage situations:
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Background music in the store
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Music in waiting areas or elevators
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Radio playback in the restaurant
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DJ sets or live music in the club
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Music streams in the gym
2. which rights are affected?
As a rule, three types of rights are relevant for the public performance of music:
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Copyrights (composer & lyricist)
These rights are represented by national collecting societies such as PRS (UK), GEMA (Germany), SUISA (Switzerland) or AKM (Austria). -
Performance rights (performers & producers)
These concern the rights of those who have recorded a piece of music – such as singers, bands or music labels. They are also represented by collecting societies (e.g. GVL in Germany). -
Mechanical rights (for reproduction, e.g. storage or offline use)
These apply when music is stored locally or transferred to a device, which is relevant for music systems with an offline function, for example.
3. which licenses must a business operator obtain?
As a rule, you must secure the following licenses to ensure legally compliant sound reinforcement:
a) Performance license with the collecting society (e.g. SUISA, GEMA, AKM)
This license permits the public reproduction of protected musical works. The costs depend on the size of the room, the type of use and the number of playback points. Without this license, there is a risk of warnings and fines.
b) License with the music service provider
If you use a professional music service (e.g. for curated playlists or automatic music control), you also need a license from the respective provider. Important:
Spotify, Apple Music & Co. are only licensed for private use – not for commercial use!
4. what you should look out for when choosing a music service
A professional music service like DMD2 Music for commercial use:
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is licensed for commercial use
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discloses repertoire information (what music is included?)
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has GEMA/SUISA/AKM compatibility or offers GEMA-free music where applicable
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is technically reliable (backup function, zone control, volume control, etc.)
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is individually customizable (e.g. music style according to time of day, customer target group, location)
Tip: DMD2 also offers personalized voice announcements, audio advertising or location jingles – this also contributes to branding and sales promotion.
5 GEMA-free music: an alternative?
There are providers who only supply so-called “GEMA-free” music. DMD2 also offers this option. This music was either composed by independent artists or the rights are held directly by the provider. Advantage: There are no ongoing fees to the collecting society.
But be careful:
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GEMA-free does not automatically mean “free of charge” – licenses are also required here, which are covered by DMD2.
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The musical repertoire is more limited and not suitable for every target group.
Conclusion
The legally compliant use of music in business is not a sure-fire success. If you want to be on the safe side, you should:
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Obtain a valid performance license from the responsible collecting society
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Choose a professional music service such as DMD2 that is licensed for commercial use
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Pay attention to technical, musical and legal quality
In this way, you not only avoid legal risks, but also create a sonic brand experience that inspires customers and invites them to linger.
Interested in a licensed and high-quality music service for your business?
We will be happy to advise you on legally compliant solutions with individually tailored music and professional audio design. Get in touch with us today.