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Small business music licensing in the US

Everything you need to know about music licensing

If customers or staff can hear music in your café, salon, shop or clinic, US law says you need a license, traditionally from ASCAP, BMI, SESAC or GMR. Here's exactly what that means, what it costs, and the cheaper, fully-licensed way to do it.

Do I actually need a license? Almost certainly, yes.

Playing commercially released music where customers can hear it is a public performance under the US Copyright Act. Without the right license, from ASCAP, BMI, SESAC or GMR or a directly licensed service like Melodial, it's copyright infringement, whether the music comes from the radio, a CD, a TV or a streaming app.

There is no exemption for small businesses. A one-chair salon or a quiet waiting room needs a license just the same as a busy café.

The simple test
? Can a customer or staff member hear the music?
✕ Yes → you need a public performance license.
✓ No → no license needed (but silence is rarely the goal).

Where does your music come from?

Almost every common source needs a separate commercial license. Here's how they stack up.

Spotify / Apple Music

Personal and Premium accounts are for private use only. Playing them in a venue breaches their terms.

License required

Radio

Broadcasts played where customers can hear them count as a public performance and need a license.

License required

CDs or USB

Buying music gives you personal-use rights. Playing it commercially is a separate right.

License required

YouTube

Same as Spotify. YouTube's terms don't cover commercial use in a business.

License required

No music at all

No music means no license is required, but that generally doesn't create the atmosphere you want for your business.

No license needed

Melodial

Melodial owns or directly licenses every track. Your subscription is your commercial license.

License included
The maths for one site

What does it cost your business?

The traditional route is two separate bills. Melodial is one.

The traditional route

Two separate bills

1
ASCAP, BMI, SESAC or GMR licenseVaries by venue type and size.
2
A separate music subscriptionStreaming or downloads, billed on top.

Together, often hundreds to thousands a year.

The Melodial way
$6.99/month

Melodial Basic. Music and your license in one flat bill. No ASCAP, BMI, SESAC or GMR fee, no second subscription.

Learn about Basic

Collecting-society fees vary by venue type, size and how music is used.

Why is Melodial so much cheaper?

It comes down to two different licensing models. Traditional licensing passes your money through layers of middlemen. Melodial owns or directly licenses every track.

Collective licensing

The traditional route

1 Your business pays ASCAP, BMI, SESAC and GMR
2 They split it among publishers & labels
3 Distributors & administrators take a share
4 A portion reaches the artists
5 You still buy a streaming service separately

Every layer takes a share, and you still pay separately for the music itself. Plus paperwork, reporting and venue-based variable fees.

Direct licensing

The Melodial route

1 Your business subscribes to Melodial
2 Melodial owns or directly licenses the music
3 That's it: music + license, one bill

One company owns the rights, runs the tech and issues your license. No collecting society, no middlemen, no second subscription, so your music and your license cost $6.99/month, full stop.

The risk of getting it wrong

"Too small to notice" isn't a real category.

ASCAP, BMI, SESAC or GMR doesn't wait for you to come forward. They send letters, make calls, send reps to listen in person, use music-recognition technology, and even check the background of your social posts. Businesses get reported by competitors and former staff, too.

Get caught and the court can order back-fees, the rights-holders' legal costs and punitive damages, far more than the license ever would have cost.

Real case · Florida, 2014

A Florida tavern ignored BMI's warning letters and played five songs without a license. A federal court found infringement, upheld on appeal.

US$5,651
License fees
they avoided
US$17,000
Treble statutory
damages, plus fees

BMI v Evie's Tavern Ellenton, Inc., No. 8:11-cv-2056 (M.D. Fla.), aff'd (11th Cir. 2014).

Get compliant in 3 minutes with Melodial Basic

The music and the license, in one $6.99/month subscription. A Certificate of Compliance the moment you subscribe.

1

Subscribe to Melodial

One flat $6.99/month for your premises. No contracts, cancel anytime.

2

Play Melodial exclusively

Switch off Spotify, radio and CDs. Stream via our web player or mobile app.

3

Download your certificate

Official proof your music is fully licensed. Show it to ASCAP, BMI, SESAC or GMR if they ask.

See plans & pricing

Common questions

My business is tiny. Do I really need a license?
Yes. There is no size exemption in the US. A single-chair salon or a small waiting room needs a license if music can be heard. With Melodial, your subscription covers any single premises regardless of size.
Does my Spotify Premium account cover my business?
No. Spotify's terms are for personal, non-commercial use only. Playing it in your venue is still an unlicensed public performance, and it leaves a clear record of commercial use on a consumer account.
Is Melodial's license actually legal?
Yes. Melodial owns or directly licenses every track, and none of its catalogue is registered with the US performing rights organizations (ASCAP, BMI, SESAC, and GMR). With no royalties for them to collect, there is no fee for you to pay them. Your subscription is your license, and you can download a Certificate of Compliance to prove it.
What if I also want to play chart hits?
If you play commercially released mainstream music (think Ed Sheeran or Taylor Swift) you still need an ASCAP, BMI, SESAC or GMR license for that. To be fully covered without it, play Melodial exclusively. Our catalogue spans 25+ genres with no explicit lyrics.
What does it cost, and how do I play it?
Melodial Basic is $6.99/month (or $69.99/year), music and license included. It runs on any device you already own (laptop, tablet or our mobile app), connected to your speakers by Bluetooth or AUX. Setup takes under three minutes.
What if ASCAP, BMI, SESAC or GMR contacts me?
Show them your Melodial Certificate of Compliance. It proves your music is fully licensed and outside their catalogue. If they press further, forward their email to Melodial and the team will help you draft a reply.

Don't wait for the letter. Get licensed today.

Music and license in one subscription, for $6.99/month. Certificate of Compliance the moment you subscribe.

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