DMCA compliance for businesses: what you need to know about the Digital Millennium Copyright Act

What is the DMCA and why does it matter for your business?

The Digital Millennium Copyright Act (DMCA) was passed by the U.S. Congress in 1998 at the start of the digital revolution. The internet provided us with infinite new ways to listen to and share music, but outdated copyright laws made it challenging to protect artists from piracy. New laws were needed to protect creators that would govern how music could be used digitally. The DMCA details how technology like internet radio and streaming services must use the music that they license according to US music licensing rules.

To protect artist revenues collected by performing rights organizations and not compete with album sales, restrictions were placed on non-interactive streaming services to restrict how often tracks by the same artist or from the same album were played over a three-hour period. This is legally referred to as the Performance Complement.

For business music streaming services that offer non-interactive streaming that means that the service needs to get a license to broadcast the music. This is typically licensed through SoundExchange, where the Performance Complement is regulated.

What is the Performance Complement in the DMCA?

The Performance Complement is a limitation placed on webcasters, such as music streaming services for businesses. It limits the number of times an artist or certain tracks from the same album can be repeated within a three-hour period.

These limits are:

1. No more than four tracks by the same featured artist (or from a compilation album) may be transmitted to the same listener within a three-hour period (and no more than three of those tracks may be transmitted consecutively).

2. No more than three tracks from the same album may be transmitted to the same listener within a three-hour period (and no more than two of those tracks may be transmitted consecutively).

Sounds complicated and hard to manage, right? Thankfully, it's not something your business needs to worry about. When it comes to the DMCA, it's the responsibility of the streaming service to handle the performance complement.

Soundtrack has you covered. We were the first business music streaming service to license directly through record labels. That approach means Soundtrack offers both a non-interactive radio-like experience as well as a fully interactive experience just like personal music streaming apps (like Spotify, YouTube Music and Apple Music).

Our Shuffle and Radio features have built-in algorithms that are in accordance with our direct agreements with record labels and a business doesn't need to think about DMCA, all without you needing to lift a finger.

You can be in control with Minimal Mode, give us your perfectly curated playlists based on the vibes you want to share, and our Shuffle and Radio features gently mix your music. The more variety you provide, the fewer recommendations you will receive and the more power you have over the listening experience for your customers and staff.

Why not let us take the wheel? Radio Mode and our AI-Powered Stations recommend music based on tracks you love.

Soundtrack makes it easy

Soundtrack is a purpose-built compliant music streaming service. Valuable business features help you deliver an elite music listening experience for your clients and staff, while you stay fully compliant with music licensing legislation.

Our catalog of over 125 million tracks is fully licensed for use in the United States and Canada, including PRO licenses for most business settings, so you can have total peace of mind. In other countries, you'd only need to add public performance licenses.

Set and forget your sonic brand strategy with Soundtrack as your music partner. Using a professional music service removes the guesswork from complex copyright legislation, so you can focus on your customers with peace of mind (see what's included).

Learn how you can amplify the listening experience for your business today with a 14-day free trial of Soundtrack.