Ask a Business Advisor: Do I have to pay for playing music in my business premises?
Christmas music during the festive season lifts the spirits and can speed up sales. Quiet background music helps a massage client relax and enjoy, perhaps even book another session. Playing music indirectly benefits the entrepreneur economically by creating a pleasant atmosphere in business premises where products or services are sold, or where visitors are otherwise meant to feel comfortable.
Why do you need to pay for music?
Entrepreneurs always don’t know that for playing music, they must also pay appropriate fees which are distributed to the music creators, publishers, and performers. A music usage licence must be obtained, and a fee must be paid for the use of music, even if there is no entrance fee to the premises or events where music is played.
Business advisor Antti Alasaari points out that playing background music through the radio, for example, is very common in businesses.
– Appropriate payments must always be made, as musicians and composers also deserve their compensation for their work, he adds.
All music licences from the same service
Background music usage licences can be easily obtained from the joint Musiikkiluvat.fi service of Gramex and Teosto. It should also be noted that in addition to entrepreneurs, associations also need licences when playing music at their events.
Music licence prices
Music licence prices are determined by industry and the size of the premises or the number of customer seats. In some industries, prices are quoted annually, and in others, monthly.
– Monthly fees range from a few euros to a few dozen euros depending on the industry and the size of the business. So, we are not talking about huge sums, Alasaari reminds.
Cost of licence depends on purpose of use
The amount of compensation to be paid for the use of music depends on the significance of the music to the user’s activities. The compensation is higher if the music is a central and significant part of the activity, and lower if the music is just in the background creating an atmosphere.
Typical users of background music licences are restaurants, shops, fitness centres, taxis, and hairdressers – businesses with customer or waiting areas.
A music licence is necessary for all public performances
– Music licences are always required when music is performed publicly. Entrepreneurs should remember that Christmas parties and various customer events also count as public performing, Alasaari reminds.
You must have the same music licence when playing music from the radio, television, or streaming service. It is worth remembering that a standard Spotify licence is intended for private use only, and there is a service called Soundtrack for commercial use.
Music created with the assistance of artificial intelligence (AI)
In June 2024, Teosto updated its guidelines on registering music created with the assistance of AI. According to the law, only the result of human creative work can receive copyright protection.
If AI has been used as a technical aid in creating a piece of music, for example in composition or lyrics, the work can be registered with Teosto in the name of its creator. The creator is responsible for ensuring that the human contribution has played a sufficiently significant role in the creation of the work.
The person making the work notification is also responsible for ensuring that the work they register does not infringe on the rights of any third party.
Did you know?
- Music can influence the atmosphere of your premises and strengthen your brand.
- Staff can also benefit from background music due to its positive impact on the ambience.
- There are also services online where you can get royalty-free music for a monthly fee, which does not require music licences.
- Music licences are tax-deductible expenses for businesses.
- Running companies, changes in ownership
- Regional responsibility: Laihia, Isokyrö