When we’re out in public, recorded music surrounds us wherever we go. Sitting in waiting rooms, browsing shops, eating at restaurants, and exercising at the gym—these everyday activities would all feel pretty strange and lifeless without music. If you read the fineprint of the user agreements of many popular digital music streaming services, you’ll find that your subscription only buys their platform for ‘domestic and personal use.’ So how do artists get paid for music played in public places or businesses?
If you own a business of any size, it’s important to make sure the creators of the music you play are being fairly compensated, and that you’re complying with the Copyright Act. It’s not enough to pay for a music service subscription, or use a radio or free-to-air TV. To be covered for the use of music at your place of business, you most likely need a licence.
Where can I get a licence, and how much does it cost?
The most commonly used licence provider in Australia is ‘OneMusic’—a joint initiative from ‘APRA AMCOS’ (the collecting society for songwriters and publishers) and ‘PPCA’ (the collecting society for recording artists and the rights holders of sound recordings) with millions of songs in their catalogue, meaning you’ll be covered for almost anything you want to play. It’s relatively quick and easy to purchase a music licence from the OneMusic website portal for your business.
The cost of a licence will vary according to several different factors. To make the price fair for everyone, OneMusic calculates a bespoke rate for your business, starting from $100 annually, depending on variables like square meterage of the premises, how many customers will hear the music, and whether you’ll be streaming music (more expensive) or playing the radio. You can choose to pay your licence fee annually or in instalments.
Do I really need one?
If you’re going to use most types of recorded music at your place of business, yes you really need a licence. APRA AMCOS has recently demonstrated that they’re willing to litigate the issue for businesses who refuse to do the right thing— in Australasian Performing Right Association Limited v Parry [2023], the Federal Court found the owner of a hospitality venue liable for damages and costs in excess of $50,000 for ‘wilfully persisting’ in playing copyright music without a licence. For context, his fee annually through OneMusic would have been just $2,000.
There are some limited exemptions to the licence requirement in specific circumstances, and price concessions available in some instances. For example, the rules are slightly different for small businesses and home offices with employees streaming music from their personal devices via headphones, for music therapy, music tuition and nursing homes.
Need help?
If you’re a business owner and you’re confused about your obligations regarding copyright and music licensing, we’re happy to help you wrap your head around it. Otherwise, there are some great resources on the OneMusic website.
Contact: Chelsea Donoghue | Solicitor | [email protected]