Are Performing Rights Societies pressuring small businesses to get a license for playing music in their business if the business is just using free music on YouTube that the Performing Rights Society does not represent the artist of the music ? Or are they just ignoring this type of music use in businesses ?
Performing Rights Organizations (PROs)—such as BMI, ASCAP, and SESAC in the US, or PRS for Music/PPL in the UK—do actively reach out to and pressure small businesses. They do not ignore them simply because the business claims to be playing “free YouTube music.”
The conflict between small businesses using YouTube and PRO representatives stems from a few structural reasons:
1. YouTube’s Terms of Service vs. Public Performance
Even if a video or track is completely free to stream on YouTube, YouTube’s Standard Terms of Service only grant permission for private, personal use.
- Streaming YouTube over a business’s speakers or TV turns it into a public performance under copyright law.
- Even if the YouTube creator uploaded their track for free, they usually retain the underlying performance rights. Playing that audio to customers without a public performance license is technically copyright infringement.
2. “Royalty-Free” Does Not Automatically Mean “Public Performance Free”
There is a common misconception about the term royalty-free:
- It usually means you do not have to pay recurring royalties for a specific video edit or download.
- It does not automatically grant a business the right to broadcast that song to the public in a commercial establishment.
- Unless the track explicitly comes with a commercial public performance clearance or is licensed under Creative Commons Zero (CC0) / Public Domain, the underlying songwriters may still belong to a PRO.
3. How PROs Handle “Unrepresented” Artists
If a business is playing music by an artist who is truly not affiliated with any PRO (and the music is properly cleared for commercial public spaces), the business legally does not owe that PRO a fee. However, PROs do not simply ignore these cases for two main reasons:
- The Burden of Proof: PRO field reps or auditing agents do not know what track is playing when they walk in or audit a business. They assume standard commercial music is being played until the business owner proves otherwise. The onus is on the business to provide documentation (such as logbooks, commercial licenses, or CC agreements) proving the music is completely exempt.
- Blanket Licensing Model: PROs sell “blanket licenses” covering millions of songs. If a business plays even one song in a PRO’s catalog during a year—whether via YouTube, radio, or a customer’s request—the business is technically liable. Because it is nearly impossible for a small business to ensure that zero PRO-represented music ever slips through on YouTube (due to ads, recommendations, or background audio), PROs aggressively demand blanket coverage.
Common Pitfalls on YouTube
PROs frequently catch small businesses using YouTube because of hidden copyright triggers:
- YouTube Ads: Free YouTube plays video ads. The commercial tracks or jingles playing inside those ads belong to PRO artists.
- Auto-Play/Playlists: An unpaid playlist labeled “Royalty Free Ambient Music” can easily contain user-submitted tracks that actually quote or sample copyrighted works, or include songs by artists who secretly registered with a PRO.
How Small Businesses Avoid the Pressure
Businesses that successfully avoid paying PRO fees without facing legal threats generally take one of two routes:
- Use Dedicated Commercial Business Streaming Services: Services like Soundtrack Your Brand, Rockbot, or CloudCover Music pay the PRO public performance fees on the business’s behalf, providing a certificate of clearance.
- Use Fully Cleared Commercial Music Providers: Using specialized stock sites (like Melody Pods, even the free entry level service) specifically include public performance rights in their license agreements. The business must keep this documentation on file to show PRO field reps if they issue a demand letter.
