Background music licensing explained: what venues need and why
Background music licensing in plain language: public performance, collecting societies, what venues pay for and how a directly licensed catalogue differs.
If your business plays music where customers or staff can hear it, you are usually making a public performance, and in most countries that needs permission from the people who own the rights. For mainstream music, that permission normally comes through collecting societies, often more than one. A directly licensed catalogue works differently: the owner of the music grants the licence itself, so no society fee applies to that music. This article explains the moving parts in plain language. It is general information, not legal advice, and the rules vary from country to country.
What does "public performance" mean?
Copyright law gives rights holders control over how their work is used. One of those uses is performing the work in public. Playing a recording through speakers in a café, shop, gym, hotel lobby, waiting room or office is generally treated as a public performance, even if nobody is dancing and the music is quiet. The idea is simple: the music is adding value to a business, so the people who made it are entitled to be paid.
Listening at home, on your own headphones or with family, is private. The line is crossed when music is played to the public or, in many countries, to employees in a workplace.
Why are there often two kinds of licence?
A recorded song usually carries two separate sets of rights:
- The composition: the melody and lyrics, owned by songwriters and their music publishers.
- The sound recording: the specific recorded performance, owned by the record label or producer, with rights also attached to the performers.
In many countries, these rights are managed by different organisations. One society may collect for songwriters and publishers, while another collects for labels and performers. That is why a business can find itself holding two licences, or a single combined licence that covers both, for the same background music.
What is a collecting society?
A collecting society, also called a performing rights organisation, represents large numbers of rights holders. Instead of each business negotiating with thousands of songwriters and labels, the society issues a blanket licence covering the music it represents, collects the fees and distributes them to its members. Well-known examples include MESAM and MSG in Türkiye, GEMA in Germany, SACEM in France, SGAE in Spain, SIAE in Italy, PRS for Music and PPL in the United Kingdom, and ASCAP and BMI in the United States. Each operates under its own national law and tariffs.
Blanket licences are practical when you play music from many different owners, such as the radio or a commercial streaming catalogue. They are the reason most venues can legally play popular music at all.
What do venues usually pay for?
Tariffs differ widely, and we do not quote figures here because they depend on the country, the society and the year. In general, the amount a venue pays is shaped by factors such as:
- The type of business, for example a shop, a restaurant or a fitness studio.
- The size of the space, often measured by floor area or seating capacity.
- How music is used: quiet background music, music central to the experience, or music for classes and events.
- The number of rooms or areas where music is played.
- Whether the source is radio, television or recorded music.
On top of the society licences, a venue also needs a lawful source for the music itself. A personal streaming account is generally not that source; we cover why in personal streaming versus business music.
How is a directly licensed catalogue different?
Collecting societies license the music of the rights holders they represent. If a single owner holds all the rights to a catalogue, both composition and recording, it can grant a public performance licence directly, without a society in between. That is the model behind Nova Business.
Loopcode Bilişim Yazılım Mühendislik Eğitim ve Danışmanlık A.Ş. (Lodos Nova) owns every recording and composition in the Nova catalogue. A Nova Business subscription, at $30 per venue per month, includes the right to play that music in public at the subscribed venue. Because the licence comes straight from the owner, no collecting society fee applies to Nova music. The details are set out on the licensing page.
| Mainstream music | Directly licensed catalogue (Nova) | |
|---|---|---|
| Who grants the licence | One or more collecting societies, plus the music service's own terms | The catalogue owner, as part of the subscription |
| Pricing basis | Society tariffs, often by venue size and use | One flat price per venue per month |
| Music available | Very wide, including chart hits | The owner's catalogue only |
| Paperwork | Applications and renewals with each society | Subscription receipts; confirmation letter on request |
What a directly licensed catalogue does not change
It is important to be precise about the limits. A direct licence covers the music it names and nothing else.
- If you also play the radio, a television channel or another music service, that music still needs its own licences, which usually means the relevant collecting societies.
- A public performance licence for a venue does not cover broadcasting, streaming the music online to the public, or using songs in videos, adverts or social posts. Those are separate rights.
- Each venue needs its own licence. For Nova Business, your plan includes 1 venue and each extra venue is added to the same monthly subscription.
Local rules can also have their own wrinkles, for example how societies approach businesses that play only directly licensed music. If you are unsure, it is sensible to keep your proof of licence to hand and to ask your local society or adviser how they treat it.
How do I show that my music is licensed?
For society licences, keep the licence certificates or invoices they issue. For Nova Business, your payment receipts show that the venue is subscribed, and if an inspector, landlord or head office asks for written confirmation, you can email info@loopcode.co with your business name to request a licence confirmation letter for your venue.
A simple checklist for venue owners
- List every source of sound in your venue: radio, television, streaming, playlists, live music.
- For each source, identify who grants the right to play it in public.
- Make sure the music service you use permits business use in its terms.
- Hold the society licences you need for any music they represent.
- Keep proof of each licence somewhere staff can find it.
- Review the setup once a year, or whenever you open a new venue.
If you want to see how a directly licensed service fits into this, the Nova Business page gives an overview.
Frequently asked questions
Do I need a licence to play background music in my shop? In most countries, yes. Playing music to customers or staff is usually a public performance and needs permission from the rights holders, normally through collecting societies or a directly licensed service.
Do I pay a collecting society for Nova music? No. Lodos Nova owns all the music in its catalogue and licenses it directly through Nova Business, so no society fee applies to Nova music. Any other music you play still needs its own licences.
Does a background music licence let me use songs in my adverts? No. Using music in videos, adverts or social posts needs a separate synchronisation licence, which a public performance licence does not include.
Does one licence cover all my branches? Usually not. Licences are typically issued per venue; with Nova Business, your plan includes 1 venue and each extra branch is added to your monthly payment.
