Entrepreneurs are faced with the daily decision: GEMA licence or GEMA-free music for commercial use? This choice not only affects the budget, but also legal security and operational flexibility. While GEMA recorded record revenues of 1.277 billion euros in 2023, the market for GEMA-free alternatives is growing in parallel.
What does a GEMA licence mean in practice?
Legal basis and obligation to pay fees
GEMA (Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte) is a state-recognised collecting society that administers the copyrights of over 98,100 members. Any public playback of music subject to GEMA repertoire requires a paid licence - regardless of whether you use Spotify, radio or your own playlists.
The fee structure depends on various factors:
- Operating size (square metres of the soundproofed area)
- Industry (retail, catering, fitness, etc.)
- Type of use (background music, event, online streaming)
- Useful life
For a 100 m² retail business, for example, GEMA fees are around 240 euros per year. The costs increase exponentially for larger areas or multiple locations.
Current tariff developments 2025
From January 2025, GEMA will significantly simplify its sound carrier licensing. The previously complex tariff structure will be reduced to two categories: music-centred products (CDs, vinyl) and mixed content (DVDs with films). This adjustment is in response to the 18.4 per cent decline in physical media revenues to 44.7 million euros in 2023.
GEMA-free music: definition and legal particularities
What makes music GEMA-free?
GEMA-free music refers to compositions for which no rights are administered by GEMA - for example, because the author is not a GEMA member or administers the rights themselves. An objection to the collective management of rights by a GEMA member in accordance with the Collecting Societies Act (Section 51 VGG) is possible in certain cases, but must be made clearly and in good time before publication and is subject to strict legal requirements.
Important note: GEMA-free does not mean free of charge. The rights of use must still be acquired directly from the composer, their representative or via specialised platforms. The advantage lies in the generally much more favourable licence fee.
Challenges in terms of legal certainty
The biggest hurdle with GEMA-free music is proving that it is free of rights. Companies must be able to document that the titles used are not actually in the GEMA repertoire. It becomes problematic when composers subsequently join GEMA - in this case, earlier works are also subject to retroactive fees.
Professional providers such as sonicsense solve this problem with curated GEMA-free catalogues with legally compliant certificates. The GEMA-free solutions from sonicsense include over 40 individually mixable channels with thousands of tracks by real international artists.
Cost comparison: GEMA licence vs. GEMA-free
Long-term budget planning
There are clear differences in the cost calculation:
GEMA licence (annually recurring):
- Retail 100 m²: approx. 240 Euro/year
- Restaurant 150 m²approx. 400-600 Euro/year
- Fitness studio 300 m²approx. 800-1,200 Euro/year
GEMA-free solutions:
- Professional streaming servicesfrom 10 Euro/month
- Professional services with local serversfrom 35 Euro/month
- No additional realisation company fees
Companies can save up to 100 per cent on music costs with GEMA-free alternatives, while benefiting from professional curation, continuous updates and technical features.
Technical and operational advantages
Flexibility in music design
GEMA-free streaming solutions often offer extended functions that are not available with conventional radio stations or Spotify:
- Multi-zone control for different areas
- Time-of-day programming
- Automatic volume control depending on the time of day
- Offline playback guarantee in the event of Internet failure
- Integration of own announcements and advertising clips
These features enable a much more precise adjustment to customer frequency and business hours. Studies show that optimally tuned background music can increase dwell time by up to 20 per cent.
Legal certainty through professional providers
While searching for GEMA-free music yourself is time-consuming and legally risky, specialised B2B service providers such as sonicsense offer complete solutions. The sonicEASY, sonicPRO and sonicENTERPRISE packages are all also available as GEMA-free versions and guarantee legally compliant commercial use.
Industry-specific recommendations
Retail and shopping centres
GEMA-free solutions are particularly suitable for retailers, as they:
- Enable consistent brand experiences across all locations
- Allow seasonal adjustments without additional licence costs
- No proportional increase in GEMA fees due to expansion
Catering and hotel industry
Restaurants and hotels benefit from the flexibility of GEMA-free systems:
- Different music zones (lobby, restaurant, bar) individually controllable
- No additional costs for live events or DJ sets with GEMA-free material
- Integration of announcements and advertising messages possible
Fitness and wellness
Especially in the fitness industry, where music is essential for motivation, GEMA-free solutions offer decisive advantages:
- High-energy playlists without interruptions
- BPM-optimised channels for different types of training
- No restrictions on use in courses or videos
Future trends and AI music
Generative AI and copyright
A study conducted by GEMA and SACEM in 2024 shows that 33 per cent of members already use AI tools, mainly in electronic music and advertising. At the same time, 78 per cent see AI as an economic threat, as an estimated 950 million euros in annual royalties could be at risk by 2028.
This opens up new opportunities for companies: AI-generated, royalty-free music could provide customised soundtracks for specific industries and moods in the future. However, there are still However, important legal questions regarding authorship and liability are still unresolved, meaning that the use of GEMA-free AI is associated with high risks.
Digitisation of music use
GEMA recorded an increase in online revenues of 3 per cent to 310.3 million euros in 2023. At the same time, the range of professional GEMA-free streaming services developed specifically for commercial users is growing.
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Frequently asked questions (FAQ)
Is GEMA-free music really free of charge?
No, GEMA-free only means that there are no GEMA fees. The rights of use must still be purchased, usually as a one-off licence or subscription fee.
Can I use Spotify for my business?
No, Spotify, Apple Music and Amazon Music are only licensed for private use. Commercial use requires special B2B licences and additional GEMA fees.
How do I recognise whether music is GEMA-free?
Only through official certificates or confirmations from the rights holder. Professional providers provide the corresponding proof.
What happens during GEMA inspections?
If GEMA-liable music is used without a licence, additional payments and fines may be imposed. GEMA-free music with the correct certificates is legally unobjectionable.
Are GEMA-free alternatives of equal quality?
Yes, modern GEMA-free catalogues from reputable providers contain professionally produced music by real artists in studio quality that is indistinguishable from GEMA repertoire.
Conclusion: The right choice for your company
The decision between GEMA licences and GEMA-free music depends on individual requirements. While GEMA licences offer access to the entire commercial music repertoire, GEMA-free solutions enable considerable cost savings and operational flexibility. Professional providers such as sonicsense combine legally compliant GEMA-free music with technical innovations that go far beyond conventional streaming services. For most commercial applications, curated GEMA-free solutions are the economically and technically superior alternative.
