GEMA and GEZ explained simply - what is what, and when does it get expensive?

GEMA and GEZ are often confused or equated - but this is a costly mistake. While both organisations charge fees, they pursue completely different purposes and have different legal bases.

In practice, the confusion between GEMA and GEZ (today: licence fee) often leads to misunderstandings among companies. Many business owners pay unnecessarily high fees because they do not know the differences or have false assumptions about their obligations. sonicsense is an expert in legally compliant music solutions and explains the most important differences.

What is GEMA and what do you pay for?

GEMA (Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte) is a collecting society that represents the copyrights of composers, lyricists and music publishers. It functions as an economic association by virtue of state conferral in accordance with Article 22 of the German Civil Code.

Main tasks of GEMA:

• Licensing of musical works for communication to the public
• Collection of GEMA fees for protected musical works
• Distribution of revenue to the rights holders
• Protection of the copyrights of around 60,000 members

GEMA fees are incurred if you play copyrighted music in your company - be it via radio, streaming services, CD players or live performances. The amount depends on various factors such as company size, type of use and number of visitors.

What is the licence fee (formerly GEZ)?

The licence fee is levied by the ARD ZDF Deutschlandradio Beitragsservice (formerly GEZ). This public institution finances the German public broadcasting system.

Purpose of the licence fee:

• Financing of ARD, ZDF and Deutschlandradio
• Ensuring independent reporting
• Provision of educational and cultural programmes
• Guarantee of nationwide media supply

All households and companies pay a flat-rate licence fee - regardless of whether they use public media or not. For companies, the basic monthly fee is 18.36 euros* per business premises.

The most important differences between GEMA and the licence fee

When do GEMA fees apply?

GEMA fees are due as soon as you play copyrighted music in public in your company. 

Typical situations subject to GEMA:

• Background music in business premises, restaurants or fitness studios
• Radio playback in waiting areas or sales rooms
• Streaming services such as Spotify or Apple Music (not permitted commercially!)
• Live music at events or functions
• Telephone waiting loops with background music

The tariffs vary considerably depending on the sector and scope of use. A fitness studio with 500 square metres can quickly pay several thousand euros a year in GEMA fees.

When do I have to pay the licence fee?

The licence fee must be paid for every business premises - regardless of the actual media usage. The only decisive factor is the existence of a commercially used room.

Companies subject to contributions:

• All companies with their own business premises
• Practices, law firms and offices
• Production and storage facilities
• Company vehicles (additional)

Important: Unlike GEMA, there is no exemption from the licence fee for alternative media use. Even those who only use GEMA-free music must pay the licence fee.

Cost optimisation: How to save on GEMA fees

While the licence fee is unavoidable, GEMA costs can be significantly reduced or even completely avoided:

GEMA-free music as a solution

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 himself. sonicsense offers over 30 GEMA-free, individually combinable premium channels with thousands of titles by international artists.

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 usually much more favourable GEMA fee.

Advantages of sonicsense GEMA-free solutions:

• Up to 100 % savings on GEMA costs
• Professional curation by music experts
• Regular updates and new content
• Technical features for seamless integration
• Legally compliant documentation for inspections

Be careful with AI-generated music

In the case of AI-generated GEMA-free music, important legal questions regarding authorship and liability remain unresolved. Collecting societies such as GEMA are already demanding access to the source code of AI music platforms in court. If it turns out that these systems use protected works as a basis, the use of GEMA-free AI music could be associated with high risks and additional claims.

Practical tips for companies

GEMA optimisation:

1. Analyse music usage: Which areas really need music?
2. Check GEMA-free alternatives: GEMA-free channels from sonicsense Test
3. Professional advice: Have GEMA tariffs optimised
4. Documentation: Have complete evidence ready for audits

Broadcasting licence fee:

1. Register business premises correctly: Record all locations
2. vehicles: Additional contributions for company vehicles
3. Payment modalities: SEPA direct debit for automatic processing
4. Check exemption options: Only possible in rare exceptional cases

sonicsense GEMA service: all-round support

sonicsense with over 37 years of experience, takes over the complete GEMA administration for companies:

• GEMA contract check and licence optimisation
• Transaction of the entire communication with the collecting society
• Administration of all GEMA matters
• Special discounts on all tariffs (savings of up to 40 % where applicable)
• Negotiation of optimal conditions for receivables
• Advice on the best choice of music

More information about the GEMA service can be found here.

Frequently asked questions (FAQ)

Can I also save the licence fee by listening to GEMA-free music?

No, the licence fee is payable regardless of the use of music. It is payable for every business premises.

Are Spotify and Apple Music permitted for companies?

No, these services are only licensed for private use. Commercial use is illegal and can lead to high additional charges.

How high are typical GEMA fees?

This varies greatly depending on the sector and usage. A small café pays around 200-500 euros* per year, while larger fitness centres can pay several thousand euros.

What happens during GEMA audits?

GEMA field staff can inspect businesses. With sonicsense you receive legally compliant proof for all content used.

Is it worth switching to GEMA-free music?

In most cases, yes. Companies often save up to 80-100 % of their previous GEMA costs while maintaining the same music quality.

Conclusion: Clarity creates cost control

GEMA and the licence fee are two completely different systems with different purposes. While the licence fee is unavoidable, GEMA-free music solutions offer considerable savings potential. sonicsense combines professional curation with legally compliant processing and enables companies to significantly reduce their GEMA costs.

Investing in a well thought-out music strategy pays off in the long term - both financially and through the positive effect on customers and employees. Get non-binding advice now and discover potential savings.

*As at: August 2025