Fines for Playing Music in a Business Without a License in Canada
Playing music in a business without the proper license can lead to serious financial and legal consequences. In Canada, businesses must obtain a license from a performing rights organization (PRO) to legally play music in their establishments. Failing to do so can result in fines, penalties, and legal actions. Here’s what you need to know about the risks and costs associated with playing unlicensed music in your business.
“Music is a commodity, just like anything else,” says Peter Strand, an entertainment lawyer with Leavens, Strand, Glover & Adler LLC in Chicago. Last year, in Range Road Music, Inc. v. East Coast Foods, Inc., the Ninth Circuit Court of Appeals found a California business violated copyright laws when it played music without a license. The court awarded the Performing Rights Organization (PRO) nearly $200,000 in damages and attorney’s fees. PROs hire investigators that visit businesses to see whether songs are played without a license. ” When [they] sue, they don’t lose,” Strand explained.
Why You Might Be Fined
When you play music in a business setting, you are using copyrighted material. The rights to these songs are managed by PROs like SOCAN (Society of Composers, Authors, and Music Publishers of Canada) and Re:Sound These organizations ensure that artists and creators are compensated for the public use of their work. If your business plays music without obtaining a license, you are infringing on these copyrights, leading to potential fines and legal actions.
What Are the Fines I Could Incur?
The fines for playing music without a license can be substantial. The amount you could be fined depends on several factors, including the size of your business, the number of locations, and the duration for which music has been played without a license. Fines can range from a few hundred dollars to several thousand dollars per infringement.
How Much Are the Fines?
The exact amount of the fines varies, but here are some examples:
- SOCAN can impose fines ranging from $200 to $5,000 per instance of unlicensed music use.
- Re:Sound fines can also be hefty, especially for repeat offenders or those who ignore warnings.
In addition to fines, businesses might also be liable for damages and legal fees, which can further increase the financial burden.
How Are Fees Collected?
PROs like SOCAN and Rehave mechanisms to monitor and enforce compliance. They conduct audits, send agents to businesses, and use technology to detect unlicensed music use. When a violation is detected, they typically send a warning letter first. If the business fails to obtain the necessary license after the warning, the PRO can pursue legal action to collect fines and damages.
PROs in Court
There have been several instances where Canadian PROs have taken businesses to court over unlicensed music use. In some cases, businesses have been ordered to pay significant fines and damages. These legal actions serve as a warning to other businesses about the importance of complying with licensing requirements. A PRO representative could document each:
- Phone call
- In-person visit
- Letter
- Package
Each outreach could be used to prove that a company is willfully ignoring the law. That could be evidence used in court, and it could lead to bigger fines for the business.
Pay up if you play music, stores told. A Toronto-based organization collects licensing fees for recorded music played in retail stores and cafés. ((Erin Collins/CBC))
Don’t Take the Risk
The financial and legal risks of playing unlicensed music in your business are too high to ignore. Instead, opt for a licensed music solution like CloudMusic Canada. With CloudMusic, you can play a wide range of music legally and affordably, ensuring that you stay compliant and avoid costly fines and legal battles. Protect your business and support artists by choosing licensed music.
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By securing a music license, you demonstrate respect for the creators’ rights and protect your business from significant financial and legal repercussions.
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