What is a Performing Rights Organization (PRO)?

A PRO works on behalf of music creators such as songwriters, producers, recording artists and publishers to make sure they’re paid for their work when it’s used publicly — for example, in your business space. PROs charge licensing fees, which, when paid, authorize you to play music by the music creators those PROs represent. 

The main PROs in the United States and Canada are the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI), Global Music Rights (GMR), the Society of Composers, Authors and Music Publishers of Canada (SOCAN) and Re:Sound.

Soundtrack licenses the rights directly from PROs, as well as manages playlists and content to avoid any music that isn't licensed. Our systems track and enable payment to music creators each time a track is played — which means that the artists you play are the ones who get paid. 

In the United States, your Soundtrack plan includes the licenses for ASCAP, BMI and GMR. Soundtrack does not include any music from SESAC, so this license is not needed. In Canada, SOCAN and Re:Sound licenses are included with Soundtrack.  

Why do I need music licenses for my business? What happens if I don’t have them?

Just as you pay for the lighting and décor you use in your retail store, coffee shop, restaurant, bar, hotel or other business, it’s only fair that you should also pay music creators for their contributions to your atmosphere and ambience. 

Not meeting music licensing requirements can mean that you’ve infringed upon copyright laws. This can make you liable for heavy fines and put you at risk of a lawsuit. These costs often lead to businesses shutting down for good and/or being permanently banned from using music by music creators represented by the PRO taking legal action. 

PROs such as ASCAP and BMI have been known to pursue lawsuits against businesses that don’t comply. In 2024, for instance, ASCAP issued a press release about 13 businesses it was taking action against. 

And those aren’t the only real world examples: In 2023, The Blue Moose Bar & Grill in Topeka, Kansas, was sued for two songs they played without the appropriate ASCAP licensing. In addition to being required to pay the money sought in the suit — as well as ASCAP’s legal fees —  the Kansas restaurant was also banned from ever playing ASCAP music again.

And after Tadpoles, in Tampa, Florida, let its BMI licensing lapse, the PRO sent undercover “music researchers” to investigate. The bar was forced to close its doors after BMI hit them with a hefty $30,000 fine.

How much does a music license cost?

Paying PROs such as ASCAP and BMI means you’re purchasing the right to play a certain selection of music. It also covers the right to perform music for your customers. Each organization has different rates, which vary based on such variables as the size of your business’s premises, how you’re playing music, how many customers you have and how many speakers you’ve got.

It’s important to note that many of the songs by music creators covered by one PRO will not be available from other PROs. If you obtain a blanket license from only one PRO, you won’t be able to play songs that aren’t under its umbrella. This means that if you want to play a range of fully licensed music in your business, you’ll need licenses from multiple PROs. This can get expensive — but not as expensive as a lawsuit.

What licences does my Soundtrack plan include?

Soundtrack is available in 73 different countries around the world. While each country has its own unique music licensing setup, some things remain the same. When you join Soundtrack, two out of three licenses are always included, no matter where you are in the world. These licenses are for the recording and publishing rights. 

No matter where you operate, it’s vital to always check that you’re correctly licensed. In most cases, you’ll only need to source your public performance licenses. However, if you’re in the U.S. or Canada, these are also included with your Soundtrack plan, which can mean a significant reduction in outgoing costs. It’s estimated that Soundtrack can save a business between 21% and 90% of music licensing costs compared to purchasing each license directly from a PRO.  

It’s also important to note that personal music services such as Spotify, Apple Music, Pandora, SiriusXM, iTunes, YouTube, Amazon Music and TIDAL are not approved for use in businesses. They are not meant to be played in any commercial space to entertain customers, so any business using these music platforms is most likely breaking the terms and conditions of these services. Soundtrack is the safer way to play.