Licensing Music: Everything Businesses Need to Know

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Anyone who plays music in public automatically has legal obligations. Licensing music is not an optional step in Germany - it is a legal requirement. This guide explains how music licensing works, which collecting societies are relevant, what types of licences there are - and how you as a company can keep things as simple as possible.

Table of contents

The most important facts in brief

  • Licence requirement without exception: Every public reproduction of music in the company is subject to a licence - without exception.
  • Responsible companies: In Germany, GEMA is the responsible collecting society (AKM in Austria, SUISA in Switzerland).
  • Two ways: Register music subject to GEMA correctly - or switch to GEMA-free / royalty-free music.
  • Streaming prohibited: Streaming services for private users (Spotify, Apple Music) do NOT cover commercial use.
Atmospheric restaurant interior with professional sound system

What does „licensing music" actually mean?

A music licence is the legal permission to use a copyrighted work for a specific purpose. Copyright automatically protects composers, lyricists and music publishers - so as soon as a song is created, it belongs to its creators.

Anyone who plays music in public, reproduces it or embeds it in videos requires permission from the rights holders. As it would be practically impossible to contact each composer individually, collecting societies take on this task centrally.

Important

Playing music from Spotify, YouTube or Apple Music in shops is not legally permitted - these services are only licensed for private use. Anyone who does so anyway risks warnings and additional charges.

GEMA, AKM, SUISA: The collecting societies at a glance

Depending on the country in which your company plays music, different organisations are responsible:

Organisation Country Responsible for
GEMA Germany Public performance, reproduction, broadcasting
AKM Austria Tasks analogue to GEMA in Austria
LSG Austria neighbouring rights (performers, producers of sound recordings)
SUISA Switzerland / Liechtenstein Tasks analogous to GEMA in Switzerland
SWISSPERFORM Switzerland neighbouring rights (performers, producers of sound recordings)
GVL Germany neighbouring rights (performers, producers of sound recordings)

Tip for the practice: In addition to GEMA, GVL is also always involved - the fees are collected by GEMA and then forwarded to GVL. sonicsense takes over the licence fee collection within the scope of the GEMA administration service communication with all the organisations involved for you.

The most important licence types for companies

Not all music usage is the same - and accordingly there are different licence types. The following are particularly relevant for companies that play background music:

1. public performance licence

The most common licence for business establishments: It allows background music to be played in premises that are open to the public. These include restaurants, hotels, fitness centres, hairdressing salons, retail outlets, waiting rooms and many more. GEMA calculates the fee based on factors such as area, sector, number of rooms and type of use.

2. synchronisation licence (sync licence)

If music is combined with images - for example in a promotional video, an explanatory film or social media content - a sync licence is required. This is negotiated directly with the rights holder (publisher, label) or via licence platforms. GEMA fees do not automatically cover the sync licence.

New at sonicsense: From now on, you can also obtain sync rights for all social media productions from sonicsense - thousands and thousands of songs of all styles and sound effects, completely GEMA-free, with unlimited use in terms of time and space. Users of sonicEASY can also licence this for their channels, e.g. to record testimonial clips in their rooms and post them immediately without being blocked by the portals and fearing claims from GEMA. Note: The GEMA-free channels of sonicsense are not released for synchronisation purposes without a corresponding sync licence.

Signing contracts for music licences in the company

3. mechanical licence

You need this licence if you reproduce music - for example, if you produce a CD, burn a compilation or offer music for download on an app. This type of licence is irrelevant for most business operations.

4. royalty-free licence

Royalty-free does not mean free - but that there are no ongoing fees after a one-off purchase or subscription. Many professional music libraries for companies work according to this model. GEMA royalty-free music is often the most cost-effective and uncomplicated solution for companies.

Licence music: Step by step

This is how you proceed as a company if you want to play music in a legally compliant manner:

  1. Determine type of use: Is it background music, course sound, video content or live music? Each type of use has its own requirements.
  2. Check repertoire: Should music subject to GEMA (charts, classic hits) be played or is GEMA-free music sufficient?
  3. Register with GEMA: For music subject to GEMA: calculate and register the appropriate tariff via the GEMA online portal. The licence must be obtained before use begins.
  4. GVL must be taken into account: GVL is automatically involved when sound recordings are played - GEMA collects these fees and passes them on.
  5. Check alternative: For many companies, the switch to GEMA-free music - Lower costs, no administrative effort.
  6. Save documentation: Keep proof of your licence. You must be able to prove your authorisation in the event of inspections by GEMA.

GEMA tariffs for companies: How much does it cost to licence music?

GEMA calculates fees according to a tariff system that depends on several factors. This table provides an initial overview (as at 2026, net, plus VAT):

Industry / type of utilisation Relevant tariff Orientation value
Restaurant / Café (background music) M-V From approx. 9 €/month (100 sqm)
Retail (background music) M-V Relay by area
Fitness studio (courses) M-K Per course + area
Hotel (guest and common rooms) M-V / M-H Combination of rooms
Events / Events M-U Area x visitors x entrance fee
Music on website / app Online tariffs Depending on the form of use
Tip

The GEMA price calculator on gema.de enables a customised calculation in just a few minutes. For complex situations (several branches, mixed use, Austria/Switzerland), we recommend a professional GEMA price calculator. GEMA administration.

Professional audio mixing console for commercial music use

GEMA-required vs. GEMA-free music: What suits your business?

Many entrepreneurs do not distinguish between these two worlds - although the difference for your operating budget and your administrative costs is considerable.

Feature GEMA-liable music GEMA-free / royalty-free music
Well-known charts and hits Yes No (specially produced music)
GEMA registration required Yes, for the duration of use No
Current fees Yes, depending on area/use No (time-limited licence or subscription)
Administrative expenses High (registration, setlists) Low
Sound quality / professionalism High, but dependent on the artist Consistently high, professional and customer-orientated
Legal certainty Only with correct registration Complete (with a reputable provider)

For many businesses - especially those with larger areas or multiple locations - GEMA-free music is the more economical choice. It saves on annual fees and the entire registration process without having to sacrifice professional sound.

The sonicsense solution: Licensed, professional, complete

sonicsense offers companies a complete music service - from channel selection to GEMA processing:

170+ music channels for every application

The offering currently includes more than 170 licensed music channels (GEMA, AKM, SUISA) and 33 royalty-free channels - categorised by music genre and application area. Whether jazz for the restaurant, energetic beats for the gym or relaxing ambient sounds for the wellness area: the perfect music mix for your brand is already curated.

  • Music styles: Pop, rock, jazz, classical, electronic, Latin, world and many more
  • Special channels: Pure sound and ambient channels for special atmospheres
  • Industry solutions: Gyms, hotels, restaurants, retail, beauty, medical practices and more

GEMA administration: We take care of everything

The sonicsense GEMA service takes all the administrative work off your hands: from initial registration and annual maintenance to communication with GEMA and GVL. You play the music - we make sure that everything is legally compliant.

Music for your company - legally compliant & professional

Would you like to know which licence you need, how to invoice GEMA fees correctly - or whether a GEMA-free solution is better for you? sonicsense will advise you individually and free of charge.

Request GEMA advice now

5 practical tips for music licensing

1. playing Spotify & Co. in the shop is illegal

Even if your team uses the app: streaming services for end users do not cover commercial use. Always use a business music service or a properly registered solution.

2. multiple locations: use collective contracts

GEMA offers framework agreements for companies with several branches. This saves effort and often also costs. sonicsense provides support in negotiation and administration.

3. obtain a licence before starting use

The GEMA licence must be obtained before the first playback - not afterwards. Subsequent registrations are possible, but are more expensive and increase the risk of warnings.

4. GEMA-free alternatives are professional

High-quality GEMA-free music sounds professional and can be perfectly customised to your brand. For many companies, this is the most elegant solution.

5. keep set lists

If you play music that is subject to GEMA, you will need proof in case of doubt. Have set lists or programme overviews to hand.

Modern retail shop with professional background music

Conclusion: Licensing music - easier than expected

Licensing music sounds complicated - but it doesn't have to be. If you know the basic rules and rely on an experienced partner, you can save yourself the stress of dealing with the authorities, the risk of warnings and unexpected costs.

The simplest solution for most companies: Professionally curated music channels - either GEMA-licensed with full administration or GEMA-free without any fees. sonicsense offers both: over 170 channels, first-class sound quality and advice that suits your industry.

Frequently asked questions about music licensing (FAQ)

As a small café, do I really have to have a GEMA licence?

Yes, the obligation to obtain a licence applies regardless of the size of the business. Even a small booth with a radio in the background is subject to GEMA registration as soon as customers - i.e. the public - are present. The only exception: GEMA-free music only.

What happens if I play music without a licence?

GEMA carries out regular checks. Anyone playing music without a licence risks warnings, retroactive demands for up to three years and additional penalties. In the event of a repeat offence, civil action may also be taken.

Is GEMA-free music really free?

Not necessarily - GEMA-free only means that there are no GEMA fees. Professional libraries such as sonicsense work via a subscription model. The advantage: You pay a fixed amount and subsequent GEMA fee increases do not affect you.

Does a GEMA licence also cover my video on Instagram?

No. The GEMA public performance licence covers the playing of music on your premises. For videos on social media channels, you also need synchronisation rights and platform-specific licences. Tip: The new sync service from sonicsense gives you access to thousands and thousands of GEMA-free songs and sound effects for all your social media productions - with unlimited use in terms of time and space. Ideal for testimonial clips, reels and other video content.

What does music subject to licence mean at sonicsense?

The sonicsense channels subject to licence contain music from the GEMA, AKM and SUISA repertoire. This means that you can play well-known music - sonicsense helps you with the correct registration and administration of GEMA fees. Alternatively, 33 royalty-free channels are available, which do not incur any collecting society fees.

Can I play music from YouTube in the shop?

No. YouTube content may only be streamed for personal use. Commercial playback - even if no entry fee is charged - is a copyright infringement without an additional licence.

Legal notice: This article is for general information and does not constitute legal advice. All information on GEMA tariffs is based on the status as of 2026 and is subject to change. Please check current tariffs directly on gema.de or seek individual advice.

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