The most important facts at a glance
There are many persistent misconceptions about GEMA. Anyone who uses music publicly - whether in Businessin the club or at events - should know the key points:
Licence requirement: Any public performance of music in the Business is subject to GEMA - regardless of source, medium or volume.
Common mistakes: Spotify, radio and YouTube are not automatically allowed and can result in expensive additional payments for any business.
No de minimis limit: Even small shops and businesses have to pay GEMA fees - there is no exemption.
Protect copyrights: Even your own or classical music is often not automatically GEMA-free in shops.
Legally compliant solution: With professional B2B providers such as sonicsense GEMA-compliant or GEMA-free programmes can be implemented easily and securely, especially for business.
Reading time: approx. 10 minutes
GEMA is Germany's most important collecting society for music rights - but there are persistent myths and misunderstandings surrounding it. Many entrepreneurs mistakenly believe they could GEMA fees or underestimate the legal consequences. These mistakes can be expensive and cause legal problems. In connection with the use of music in public spaces, there are Legal obligations for licensingto protect the rights of authors and ensure legal certainty. GEMA is the largest collecting society in Germany and plays a central role in the enforcement of these rights.
What is GEMA actually?
The Society for Musical Performing and Mechanical Reproduction Rights (GEMA) represents the rights of over 95,000 composers, lyricists and music publishers in Germany. As a state-recognised collecting society, it collects royalties for the public use of music and distributes them to the rights holders.
For companies, this means Anyone who uses music commercially - whether in retail, gastronomy, fitness studios, hotels or elsewhere - needs a corresponding licence. But this is where most misunderstandings arise. It is important to note that the The use of music in shops can also have a positive influence on customers' purchasing behaviourwhich also justifies the investment in a licence.
Is GEMA state-run?
It is often assumed that GEMA is a state authority. This is wrong. GEMA is a State-recognised, but privately organised collecting society. It works on behalf of the authors and has the task of administering and enforcing their rights. State-recognised means that the legislator has granted GEMA a monopoly for the administration of music rights - it is controlled by the German Patent and Trade Mark Office (DPMA). GEMA thus ensures that the authors of musical works are fairly remunerated without itself being a state institution.
In addition to the legal form, the benefits GEMA offers its members are decisive - and this is precisely what GEMA membership shows.
GEMA membership: Who benefits and what does it mean?
GEMA membership is a decisive step for composers, lyricists and music publishers to effectively protect their rights to musical works. As a member, you benefit from the fact that GEMA represents your interests and takes care of the remuneration for the use of your music. This means that whenever your works are played in public - be it on the radio, at events or in the catering trade - GEMA ensures that You as rights holders receive fair remuneration.
Membership not only offers protection against unauthorised use, but also provides you with Access to a network of music makers and experts. For professional composers and music publishers in particular, GEMA is a strong partner that monitors the use of their music and distributes the income from licences transparently. This allows you to concentrate on the essentials: creating new music, while your rights and income are reliably secured.
While membership primarily benefits authors, the use of music in day-to-day business causes numerous misunderstandings.
The following points often lead to misunderstandings in day-to-day business. We have summarised the Top 10 misconceptions about GEMA compiled.
Misconception 1: "Spotify and Apple Music are legal for businesses to use"
The truth: Consumer streaming services such as Spotify or Apple Music are exclusively for private use licenced. Commercial use violates the terms of use and can lead to costly warnings.
Caution: The use of consumer streaming services in business entails considerable legal and financial risks, as expensive consequences can quickly arise without the right licence.
Businesses need Specialised B2B solutionswhich cover both the GEMA fees and the ancillary copyrights, the rights of the musicians. Professional providers such as sonicsense offer legally compliant alternatives with corresponding commercial tariffs - the use of unlicensed services can quickly become a cost trap.
With Spotify and Apple Music In a nutshell, consumer streaming is only permitted for private use; in business, a commercial music licence or B2B solution is always required.
Misconception 2: "GEMA-free music is free"
The reality: GEMA-free does not mean free of charge. This music comes from artists who are not organised with GEMA, but still hold copyrights. Licence fees are still payable for commercial use - just not to GEMA.
Serious GEMA-free Music libraries pay the fee directly to the composer. With Sonicsense, for example, you get access to over 40 premium channels with almost 40,000 fully licensed, GEMA-free tracks by real artists.
Note: GEMA-free does not mean free - licences are granted by the author/provider, not by GEMA.
Misconception 3: "Radio in shops is GEMA-free"
The mistake: Many entrepreneurs think that playing radio stations does not incur GEMA fees because the station is already paying. This is wrong. Any public performance of music - including on the radio - is subject to GEMA fees.
In the context of copyright law, communication to the public is defined under the term 'b', whereby the decisive factor is whether the music is used in a public or private context. The legal consequences and differences arise depending on the type of event or use.
GEMA distinguishes between broadcasting (paid for by the radio station) and public performance (paid for by the company). In addition, you have no control over commercial breaks or inappropriate content.
In short: Radio remains subject to GEMA - Broadcasters pay for transmission, the business pays for playback.
Misconception 4: "Small transactions fall under the de minimis threshold"
The truth: There is no general de minimis limit for GEMA. Even the smallest shops have to pay fees if they play music in public. The amount depends on factors such as business space, number of visitors and type of use.
Even a 20-square-metre shop pays GEMA fees if music is played there. The tariffs are staggered, but there is no complete exemption. GEMA offers various tariffs that differ depending on the type of use and the size of the shop. For background music, the fees are usually calculated based on the shop space.
In short: There is no general de minimis limit - even the smallest areas require a licence, depending on the tariff.
Misconception 5: "Own music is automatically GEMA-free"
The misunderstanding: Business owners who make music themselves often believe that their own compositions are automatically GEMA-free. This is only partially true.
If you are a GEMA member, you have your Rights to GEMA also for their own works. Every work created by a GEMA member is subject to the obligation to register with GEMA, regardless of its use. In this case, you still have to pay GEMA fees and can receive royalties later. Only in the case of non-GEMA members is your own music actually GEMA-free. GEMA fees are usually paid directly to GEMA after a licence agreement has been concluded.
But be careful! If you record well-known pieces of music by other artists yourself, these recordings are generally subject to GEMA, as the rights of the author remain in force, regardless of who records the piece.
Key point: As a GEMA member, your own works are also subject to registration and remuneration; cover versions are protected anyway.
Misconception 6: "YouTube music can be used commercially"
The mistake: Playing YouTube videos in shops is legally problematic. Firstly, most content is not licensed for commercial use, and secondly, additional GEMA fees are incurred for public playback. Different uses of music - such as streaming, downloading or playing videos - each have their own legal requirements and must be licensed accordingly.
There are also practical problems: Adverts, unpredictable content and internet dependency make YouTube unsuitable for commercial sound reinforcement. Professional solutions offer guaranteed playback even in the event of an internet outage.
To summarise: YouTube is not licensed for commercial reproduction - public use requires its own licences and is operationally unreliable.
Are you still unsure?
Get in touch now and benefit from personalised GEMA advice from sonicsense.
Misconception 7: "Classical music is in the public domain and free of charge"
The confusion: While the compositions of Bach or Mozart are actually in the public domain, each recording creates new neighbouring rights for the recording musicians. The copyright to a musical work expires 70 years after the death of the author. Orchestras, conductors and producers have claims for 50 years.
Modern recordings of classical works are therefore usually subject to GEMA. Works that are free of copyright may generally be used, but new rights to the works may arise in the case of modern recordings. The GEMA obligation relates to the public performance of a musical work, whereby the decisive factor is whether the musical work is intended for the public. Only in the case of very old recordings or specially produced public domain versions are the fees waived completely.
In brief: Compositions can be in the public domain, modern recordings are subject to neighbouring rights and usually require a licence.
Misconception 8: "Background music is less subject to GEMA"
The reality: GEMA does not differentiate between foreground and background music. As soon as music is audible to customers, fees are incurred. The volume does not play a role in the obligation to pay fees. Any use of music in a business context requires appropriate licensing in order to fulfil the legal obligations.
However, there are different tariffs depending on the type of use. Pure background music is charged differently to course and dance music or live performances, but it is never completely free of charge.
Important: Volume and "background" do not change anything - audible music in the shop is subject to licence, only the tariff differs.
Misconception 9: "GEMA fees can be easily avoided"
The danger: Some entrepreneurs try to circumvent GEMA fees with tricks - for example by using foreign streaming services or using music that has not been registered. This is risky and can be very expensive.
GEMA carries out regular checks and imposes back payments plus late payment penalties of up to 100% of the standard licence fee in the event of infringements. In such cases, an invoice is issued for the additional payment and possible penalties. In addition, legal action may be taken and sanctions imposed in such cases. In the event of violations of the GEMA guidelines, the outstanding licence fees are initially due retroactively. Legally compliant alternatives such as completely GEMA-free solutions are ~often~ always more favourable than back payments for infringements.
In short: Attempts to circumvent this often lead to checks, additional payments and surcharges - legally compliant alternatives are generally more favourable.
Misconception 10: "Online music does not need GEMA registration"
The mistake: Many people think that music from the Internet is automatically treated differently. This is wrong. Whether CD, radio, streaming or download - every public reproduction of music is subject to GEMA.
The source of the music is irrelevant. The decisive factor is that customers can listen to the music. GEMA fees are then incurred, regardless of the transmission channel.
Further information on the legal requirements can be found on the corresponding page of GEMA.
That makes it clear: Regardless of the source or medium, any public reproduction of music remains subject to a licence.
Use music legally compliant - with sonicsense
For a legally compliant and flexible music solution in the shop or at events, we offer sonicsense the right alternative - including GEMA-compliant programmes and GEMA-free options.
GEMA and associations: What needs to be considered?
Even clubs cannot avoid GEMA if they want to use music at events. Whether at club parties, sporting events, Christmas parties or other occasions - as soon as copyrighted music is played in public, a licence from GEMA is required. This applies regardless of whether it is background music, live music or other forms of music use.
Clubs should find out about GEMA's requirements at an early stage and obtain the necessary licences for their events. In this way, they avoid legal risks and at the same time show appreciation for the work of the music creators. If you want to be on the safe side, you can seek advice directly from GEMA or use GEMA-free music if this suits the event. The important thing is that compliance with the GEMA rules protects the organisation from unpleasant surprises and ensures that every event runs smoothly.
GEMA and event organisers: rights, obligations and pitfalls
For event organisers, the use of music at events is associated with clear rights and obligations. Anyone who plays music in public - be it at concerts, parties, trade fairs or company celebrations - must obtain the appropriate licences from GEMA. The fees and tariffs depend on the type and scope of the event, the size of the venue and the expected number of visitors.
A common pitfall: the assumption that small events or private parties are exempt from the GEMA obligation. However, as soon as music is played in public, copyright law applies - and with it the licence obligation. Organisers should therefore find out about the applicable tariffs in good time and pay the fees correctly. Those who fail to do so risk additional payments and legal consequences.
A tip for event organisers: Check whether GEMA-free music could be an alternative for your event. This can save costs and often makes planning more flexible. In any case, respecting the rights of the musicians and complying with GEMA regulations will ensure that everything runs smoothly and protect you from unpleasant surprises.
To avoid these pitfalls, many companies and event organisers are now turning to Professional B2B solutions back.
The legally compliant alternative: professional B2B solutions
Instead of struggling through the GEMA jungle, smart entrepreneurs rely on professional solutions. Providers like sonicsense offer both GEMA-required and completely GEMA-free music programmes for every need. These solutions work within the framework of the legal requirements and take into account the legal framework for music use and licensing.
The advantages of professional systems:
Legal certainty through correct licensing
Multi-zone control for different areas
Playback guarantee even in the event of an Internet outage
Central remote control About sonicRemote
Individual channels for every industry
Further information on tariffs, GEMA and the legal framework can be found on the official GEMA website or from specialised providers.
Info-Video (German): Music and video solutions from sonicsense -
This will strengthen your brand image and create positive customer experiences in the shop.
Typical scenarios in the business and event sector show how the requirements play out in practice.
GEMA fees in shops
For retailers, hairdressing salons, fitness studios, hotels and catering businesses, GEMA fees apply as soon as music is audible to customers. The tariffs are usually calculated according to the number of square metres of space that customers enter. Whether the music is played loudly or quietly is irrelevant. The duration of the sound is also not decisive for the basic licence obligation - however, it can have an influence on the amount of the fee. It therefore makes sense for shop owners to apply for the appropriate licence at an early stage in order to avoid unnecessary costs or additional payments in the event of GEMA inspections.
GEMA control for DJs
DJs are also subject to GEMA regulations. As soon as music is played in publicregistration is required - regardless of whether it is a club event, a company party or a festival. DJs are also obliged to played titles in music sequence sheets so that GEMA can correctly distribute the royalties to the authors. During inspections, GEMA checks whether events have been properly registered and whether usage licences have been obtained. Those who perform without registration risk high additional payments, contractual penalties and, in extreme cases, legal action.
Conclusion: legal certainty instead of risk
The GEMA issue is complex, but the risks of non-compliance are real. Even if a company or association is a non-profit organisation, the legal obligations do not change - the regulations apply equally to everyone. Instead of relying on errors and half-knowledge, entrepreneurs should rely on professional, legally compliant solutions. Whether GEMA-liable programmes or completely GEMA-free alternatives - correct licensing is important.
Professional providers not only take the legal worries off your hands, but also offer technical advantages such as multi-zone control with predefined content and offline functionality. This allows you to concentrate on your core business while the music contributes perfectly to the atmosphere.
Contact us now and get personalised advice.
Frequently asked questions about GEMA
Do I have to pay GEMA fees if I only play music for 2 hours a day?
Yes, the duration does not play a role in the basic obligation to pay fees. However, the amount of the fee may depend on the duration of use.
Who is considered a music user and when is a Registration with GEMA necessary?
A music user is any person or company that plays music in public, e.g. in shops, restaurants, at events or in retail outlets. Registration with GEMA is required as soon as music is used in public, regardless of whether admission is charged.
Are foreign streaming services GEMA-free?
No, the GEMA obligation arises from public performance in Germany, regardless of the source of the music.
What GEMA obligations apply to restaurants?
Restaurants must obtain a licence from GEMA if they play music in public, be it in the background, at events or through live music. The tariffs depend on the size and type of music use.
What do organisers need to consider when using music?
Organisers are obliged to register any public use of music with GEMA and pay the corresponding tariffs. This applies to concerts, festivals, company parties and other events.
What is VG WORT and how does it differ from GEMA?
VG WORT is a collecting society that manages the rights and royalties for authors and journalists. In contrast to GEMA, which represents music rights, VG WORT is responsible for the remuneration of literary and journalistic works.
What measures has GEMA taken during the coronavirus pandemic?
During the coronavirus pandemic, GEMA has offered music users, such as event organisers and restaurants, support, e.g. through credits for licence agreements during officially ordered closures.
What role does a DJ play in connection with GEMA?
GEMA acts as a kind of invisible DJ, monitoring compliance with copyright laws when music is played in public. DJs who play music in public must also pay GEMA fees.
Are parties and private celebrations subject to GEMA?
Private parties, such as birthdays in a small, private circle, are generally not subject to GEMA. However, as soon as a party is open to the public or invites a larger, not exclusively personally connected group, registration with GEMA and payment of a tariff is required.
What rights do authors have when using music?
Authors are entitled to remuneration for the use of their works. GEMA ensures that the rights of authors are protected when music is used in public and that the corresponding licence fees are collected.
What is the difference between tariffs and rates at GEMA?
A tariff refers to the price structure for a specific type of music use. GEMA offers various tariffs for different types of use, event sizes and sectors. Choosing the right tariff is crucial for the correct settlement of licence fees.
Can I deduct GEMA fees from my taxes?
Yes, GEMA fees are business expenses and tax-deductible.
What happens with GEMA controls?
GEMA can demand back payments, late payment surcharges and future fees. Repeated offences may result in legal action.
Are Christmas markets subject to GEMA?
Yes, seasonal events are also subject to GEMA. However, there are special GEMA-free Christmas music solutions.
