Frequently Asked Questions About Paying Royalties in Stores and Commercial Businesses
One of the concerns for store owners and business proprietors is the requirement from collective management organizations (ASCAP, PRS,BMI) to pay fees related to the use of music in their business premises.
This page provides a brief overview of the copyright regulations in stores and answers common questions.
Is it legal for collective management organizations to require payment for using music in my store?
Yes. It is entirely legal and also beneficial for all professionals working in the music industry (composers, lyricists, musicians, singers, etc.). Through these organizations, creators are compensated for the public use of their work.
Is there a way to play music in my store without paying royalties to collective management organizations?
The answer is YES.
How?
As mentioned earlier, composers and lyricists have entrusted specific collective management organizations with collecting royalties from the public performance of their music.
However, this does not mean that ALL composers and lyricists worldwide have assigned their rights to these organizations. Most of the music we hear on the radio and television belongs to creators affiliated with collective management organizations, meaning that any public performance through these mediums automatically incurs royalty obligations.
For creators who have not assigned their rights to these organizations, there is no requirement to pay royalties to them, as they are not authorized to collect public performance royalties from independent creators.
Where can I find such composers so that I don’t have to pay royalties?
You can find them on platforms like Audioblanket. Our platform provides music that is not assigned to any organization, meaning that no organization can demand royalty payments as long as you play only our music.
I pay a subscription to Spotify—doesn’t that cover music licensing? Do I still need to pay royalties?
It is important to understand that collective management organizations do not collect royalties for general music usage. They collect on behalf of the creators they represent. Most of the music on Spotify belongs to creators under contract with these organizations, meaning that public performance still incurs royalty obligations. Your Spotify subscription does not cover public performance rights.
I only play foreign music in my store. Why do I still have to pay royalties?
Collective management organizations are connected globally through a network.
Each organization, besides representing local creators, has reciprocal agreements with foreign collective management organizations. These agreements allow them to collect royalties on behalf of international creators and distribute them accordingly.
How much does the Audioblanket service cost for royalty-free music?
The final price is €49 per year per store.
Can I use the Audioblanket service and still have my TV on in my store?
The music played through Audioblanket’s stations consists of tracks by creators who have not signed contracts with copyright management organizations.
For this reason, businesses using our service are covered and do not need to pay royalties to these organizations.
However, if the TV is on, some of the music played may belong to creators under contract with collective management organizations, meaning royalties must be paid accordingly.
In contrast, Audioblanket’s music is specifically curated, ensuring that no creators represented by these organizations are included.
Do I receive a contract for using Audioblanket’s music?
Yes. Upon purchase, you receive a contract stating that the music provided by our stations does not belong to any collective management organization. This agreement serves as a public performance music license between Audioblanket and your business.