Music Licensing for Businesses in Canada
Music plays a crucial role in setting the mood and enhancing the overall experience. However, playing music in a business is not as simple as hitting play on your personal Spotify account. In Canada, businesses need to obtain the proper licenses to legally use music in their establishments. In this comprehensive guide, we’ll dive into the world of music licensing for businesses in Canada and how CloudMusic can help you navigate this process seamlessly.
Understanding Music Licenses in Canada
When it comes to playing music in a business setting, there are three different rights you need to secure:
- Recording Rights: This covers the right to use a specific recording of a song.
- Publishing Rights: This covers the right to use the original composition of the song.
- Public Performance Rights: This allows you to play the song in a public environment, such as your business.
Obtaining these licenses individually can be a complex and time-consuming process. That’s where CloudMusic comes in. Our service covers all three licenses for background music in Canada, with some exceptions. Public performance licenses through SOCAN and Re:Sound are included in our offering, making it easy for you to ensure your business is fully compliant.
The Risks of Using Unsupported Services
Many businesses make the mistake of using personal music streaming services like Spotify, Apple Music, YouTube Music, Amazon Music, Tidal, or Deezer to play music in their establishments. However, these platforms are intended for personal, private use only. Using them to play music to an audience in a business setting is illegal and could result in hefty fines.
To avoid legal complications and ensure fair compensation for music creators, it’s crucial to use a properly licensed business music service like CloudMusic.
CloudMusic: Your All-in-One Solution
CloudMusic offers a licensed music service tailored specifically for commercial use in Canada. Our platform provides a wide range of features to enhance your music experience:
- Scheduling Tools: Easily plan and automate your music playback to create the perfect ambiance at different times of the day.
- Explicit Filter: Ensure your music selection is appropriate for all audiences by filtering out explicit content.
- Fair Royalty Distribution: Our technology ensures that royalties are accurately distributed back to music creators. With our Unlimited tier, royalty payments are approximately 5 times higher than those from personal streaming services.
Getting Started with CloudMusic
Ready to bring properly licensed music to your business? Follow these simple steps:
- Start Your Free Trial: Begin with our 14-day free trial to experience CloudMusic’s features firsthand. No payment or commitment is required. Start your free trial
- Verify Your Use Case: If your business charges admission, offers instructed fitness classes, or hosts live music, you may need additional licensing on top of CloudMusic’s offering. Visit the SOCAN and Re:Sound websites to verify your specific use case.
- Subscribe to CloudMusic: Once you’ve explored our platform and confirmed your licensing needs, select a plan and add your payment details to officially join the CloudMusic community. View plans & pricing
Stay Compliant and Elevate Your Business with CloudMusic
Music licensing for businesses in Canada doesn’t have to be a daunting task. By partnering with CloudMusic, you can ensure your business is fully compliant while providing an exceptional music experience for your customers. Our comprehensive licensing coverage, user-friendly features, and commitment to fair royalty distribution make us the top choice for businesses across Canada.
Don’t risk legal complications by using unsupported personal streaming services. Elevate your business with CloudMusic and enjoy peace of mind knowing you’re playing music legally and ethically. Start your free trial today and discover the difference properly licensed music can make for your establishment.
More Information about Music Licensing in Canada
Music licensing in Canada is dominated by four main organizations – SOCAN, CMRRA, CONNECT, and Re:Sound. Each of these entities plays a crucial role in ensuring that music creators and rights holders are compensated for the use of their work. SOCAN focuses on the collection of royalties for the public performance of music on behalf of songwriters, composers, and music publishers. In contrast, the CMRRA (Canadian Musical Reproduction Rights Agency) specializes in securing royalties on behalf of music publishers and rights holders for the reproduction of music. Master rights owners of sound recordings turn to CONNECT Music Licensing to manage their licensing and royalties, while Re:Sound is tasked with collecting neighbouring rights royalties for performers and record labels. Understanding the functions and responsibilities of these organizations is key to navigating the world of music licensing in Canada efficiently.
A Brief History of Canada’s Key Music Licensing Organizations
SOCAN
SOCAN, the Society of Composers, Authors, and Music Publishers of Canada was founded in 1990, standing as a pivotal moment in Canada’s music rights management. This establishment was not from scratch but rather a strategic merger of two pre-existing Performance Rights Organizations (PROs): CAPAC, which had been operational since 1925, and PROCAN, functioning since 1940. This merger was aimed at streamlining the process of collecting and distributing royalties for musical compositions and providing a unified platform for music creators and publishers.
CMRRA
The Canadian Musical Reproduction Rights Agency (CMRRA) came into existence in 1975, setting its focus on the mechanical licensing rights for both physical and digital music formats. The CMRRA plays a significant role in ensuring that publishers and copyright holders are compensated for the reproduction of their music across various mediums.
Re:Sound
Re:Sound, originally known as the Neighbouring Rights Collective of Canada (NRCC), was formed in 1997. Its creation was driven by the need to secure fair compensation for artists and record companies concerning their performance rights – a foundational aspect of the music industry’s economic structure that ensures creators and rights holders are adequately rewarded.
CONNECT Music Licensing
CONNECT Music Licensing represents a collective initiative on behalf of owners and managers of music copyrights for a considerable majority of sound recordings and video content throughout Canada. Established to facilitate efficient and fair music licensing and royalty distribution, CONNECT serves as a critical player in the ecosystem of music rights management in Canada.
How to Get a License in Canada
Following a trend seen in countries like Finland, the United Kingdom, and the Netherlands, Canada’s primary music licensing organizations have united to offer businesses an easier way to obtain a comprehensive music license. This unified approach provides complete coverage, simplifying the licensing process for businesses seeking to use music legally.
While it is not yet possible to purchase a license online directly through ConnectMusic, businesses can easily review different tariffs and related costs on their platform. Although initiating contact with customer service is necessary to arrange the license, ConnectMusic remains the sole point of contact needed for this process. Notably, when businesses choose CloudMusic Canada for their music needs, all required licenses are included, providing a seamless and compliant music experience for Canadian businesses.
FAQ
Am I fully licensed with CloudMusic?
CloudMusic provides all the licenses you need to legally play music in your business, covering all of our 100 million + songs. However, there are a few exceptions if music is a primary part of your business. In such cases, you may have to acquire special public performance licenses through SOCAN and Re:Sound. This particularly affects the following business types:
- Live music venues (DJs, karaoke, or traditional live music performances)
- Businesses that charge admission
- Businesses that conduct physical exercises and/or dance instruction to music (Note: the common areas of the gym like the lobby, locker rooms, and lounge areas are all covered).
Do I have to pay PRO fees separately, like to SOCAN or Re:Sound?
No. Except for the exceptions described above, your CloudMusic subscription includes all the licenses you would otherwise need from SOCAN and Re:Sound.
Does it cost more to go through CloudMusic than to pay SOCAN or Re:Sound directly?
No. You may actually save money using CloudMusic as your subscription includes SOCAN and Re:Sound licenses at a discount. The savings are significant for a small business like a café that seats 12, and even more substantial for larger businesses because the fees quickly scale when you purchase these licenses directly.
Sign up and start listening today
Get our most exclusive features with a no-obligation 14-day trial.
