Music Licensing in United States: Complete Guide
Businesses in the USA playing recorded music publicly typically need licences from ASCAP, BMI, SESAC, and GMR — four separate performing rights organisations covering different repertoires. SoundExchange handles digital performance separately. Track Studios' catalog is not registered with any US PRO, so venues using Track Studios are not invoiced by these organisations.
Collecting Societies
Businesses in United States require separate licences from ASCAP and BMI and SESAC and GMR and SoundExchange. Both licences are required for full compliance.
- ASCAP — ASCAPcomposition
- BMI — BMIcomposition
- SESAC — SESACcomposition
- GMR — GMRcomposition
- SoundExchange — SoundExchangeneighbouring
Streaming Service Legality in United States
| Service | Legal for business use? | Notes |
|---|---|---|
| Spotify | No | Spotify Terms of Service restrict use to personal, non-commercial purposes. |
| Apple Music | No | Apple Music Terms of Service restrict use to personal, non-commercial purposes. |
| YouTube Music | No | YouTube Music Terms of Service restrict use to personal, non-commercial purposes. |
| Amazon Music | No | Amazon Music Terms of Service restrict use to personal, non-commercial purposes. |
| Tidal | No | Tidal Terms of Service restrict use to personal, non-commercial purposes. |
| Deezer | No | Deezer Terms of Service restrict use to personal, non-commercial purposes. |
| SoundCloud | No | SoundCloud Terms of Service restrict use to personal, non-commercial purposes. |
Royalty-Free Alternatives
Track Studios' AI-generated catalog is not registered with ASCAP and BMI and SESAC and GMR and SoundExchange. Venues in United States using Track Studios' included catalog are not invoiced by either organisation. The Track Studios subscription (€25/month per location) replaces all ASCAP and BMI and SESAC and GMR and SoundExchange fees for the included music.
Venue Licensing Examples in United States
| Venue type | Collecting societies | Estimated annual cost |
|---|---|---|
| Music for Restaurants | ASCAP + BMI + SESAC + GMR + SoundExchange | USD 370–500/year |
| Music for Cafés | ASCAP + BMI + SESAC + GMR + SoundExchange | USD Varies/year |
| Music for Bars | ASCAP + BMI + SESAC + GMR + SoundExchange | USD Varies/year |
| Music for Gyms | ASCAP + BMI + SESAC + GMR + SoundExchange | USD 550–850/year |
| Music for Yoga Studios | ASCAP + BMI + SESAC + GMR + SoundExchange | USD Varies/year |
| Music for Retail Stores | ASCAP + BMI + SESAC + GMR + SoundExchange | USD 370–520/year |
| Music for Supermarkets | ASCAP + BMI + SESAC + GMR + SoundExchange | USD Varies/year |
| Music for Clothing Stores | ASCAP + BMI + SESAC + GMR + SoundExchange | USD Varies/year |
| Music for Hotels | ASCAP + BMI + SESAC + GMR + SoundExchange | USD Varies/year |
| Music for Hair Salons | ASCAP + BMI + SESAC + GMR + SoundExchange | USD Varies/year |
| Music for Spas | ASCAP + BMI + SESAC + GMR + SoundExchange | USD Varies/year |
| Music for Offices | ASCAP + BMI + SESAC + GMR + SoundExchange | USD Varies/year |
Consumer Streaming Services in United States
| Service | Status | Note |
|---|---|---|
| Spotify | No | Not legal in United States. ToS restricts use to personal, non-commercial purposes. |
| Apple Music | No | Not legal in United States. ToS restricts use to personal, non-commercial purposes. |
| YouTube Music | No | Not legal in United States. ToS restricts use to personal, non-commercial purposes. |
| Amazon Music | No | Not legal in United States. ToS restricts use to personal, non-commercial purposes. |
| Tidal | No | Not legal in United States. ToS restricts use to personal, non-commercial purposes. |
| Deezer | No | Not legal in United States. ToS restricts use to personal, non-commercial purposes. |
Decision Checklist
- If the music is audible in a public or customer-facing area, treat it as a licensing question.
- If the source is a consumer account, check the service terms before using it in a business.
- If the music is registered repertoire, check the relevant collecting society or joint licensing scheme.
- If the music is royalty-free, keep documentation showing the catalog, subscription and rights position.
Common Misconceptions
- Paying for a personal subscription is enough.
- A personal subscription can unlock listening features, but it does not automatically grant public business playback rights.
- All royalty-free music works the same way.
- Royalty-free catalog terms vary. Businesses should keep evidence for the exact catalog and licence used.
Non-Compliance Penalties
Maximum penalty: $750–$150,000 per infringed work in statutory damages
This is general information only — not legal advice. Penalty figures reflect published statutory maximums and may not represent typical outcomes. Verify current requirements with a qualified legal professional or the relevant collecting society.
Frequently Asked Questions
- What collecting societies operate in United States?
- Businesses in the USA playing recorded music publicly typically need licences from ASCAP, BMI, SESAC, and GMR — four separate performing rights organisations covering different repertoires. SoundExchange handles digital performance separately. Track Studios' catalog is not registered with any US PRO, so venues using Track Studios are not invoiced by these organisations.
- Do businesses in United States need a music licence?
- Yes. Any business in United States playing recorded music in a public-facing space must hold a licence from ASCAP and BMI and SESAC and GMR and SoundExchange. This applies regardless of what service you use to play the music — including Spotify, Apple Music, YouTube, or internet radio. The only exception is using music that is not registered with these societies, such as Track Studios' AI-generated catalog.
- Can businesses in United States use Spotify legally?
- No. Spotify's Terms of Service (§1.2) restrict use to "personal, non-commercial purposes." Playing Spotify in a United States business violates these terms and may also trigger claims from ASCAP and BMI and SESAC and GMR and SoundExchange. Spotify for Business was discontinued in 2019.
- How can a business in United States avoid ASCAP and BMI and SESAC and GMR and SoundExchange fees?
- Use music that is not registered with ASCAP and BMI and SESAC and GMR and SoundExchange. Track Studios uses an AI-generated catalog that is not registered with ASCAP and BMI and SESAC and GMR and SoundExchange — venues in United States using the included catalog are not invoiced by these organisations.
- What is the penalty for playing music without a licence in United States?
- The maximum penalty in United States is: $750–$150,000 per infringed work in statutory damages. In practice, most cases result in civil claims for back-fees plus damages rather than criminal prosecution, but the legal risk is significant.
About Track Studios
What to do after researching United States
Track Studios is a browser-based background music platform for businesses. It includes an owned royalty-free AI catalog, scheduling, announcements, Sonos-friendly stream workflows, multi-location controls and subscription documentation for active locations.
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Last reviewed: 2026-07-01