The Six Different Types of Music Licenses

Hello, everyone!

Today we will talk about six different types of music licenses and about how to navigate music licensing.

Whether you’re a content creator looking to find the perfect music for your videos or a company planning to use music in commercials, incorporating music legally and effectively is essential. Music can set the tone, evoke emotion, and strengthen your brand identity, but navigating music licensing can be challenging. In this guide, we’ll walk you through the basics of music licensing, its importance, and the various types of licenses available to ensure you can confidently and legally use music in your projects.

What Is a Music License?

A music license is a legal agreement granting permission to use copyrighted music in a specific way. It serves as authorization from the copyright holder, ensuring you can use their work under agreed-upon terms.

Music copyright protects the creators behind a piece of music—composers, recording artists, producers, and publishers—by granting them exclusive rights to their work. Licensing ensures creators receive proper compensation for their efforts, typically through royalties.

To obtain a music license, you may need to work with licensing services, music publishers, record labels, or Performance Rights Organizations (PROs) like ASCAP, BMI, or SESAC. For some uses, you might need to negotiate directly with the composer or copyright holder.

Why Music Licensing Matters

Using music without proper licensing can lead to legal consequences, including copyright infringement claims, monetary fines, and platform penalties (such as strikes or bans on YouTube). Licensing protects you and ensures that artists are fairly compensated.

By understanding the types of music licenses available, you can make informed choices and use music legally and ethically in your projects.

Types of Music Licenses and Their Uses

There are six primary types of music licenses, each suited for different scenarios:

1. Synchronization (Sync) License

A sync license is required when pairing music with visual media such as films, commercials, TV shows, or online videos. It allows you to “synchronize” a song with moving images.

Example: If you’re creating a YouTube video and want to use a popular track as background music, you need a sync license to avoid copyright claims.

2. Public Performance License

A public performance license is required when music is played in public spaces, during live concerts, or via radio broadcasts and streaming services. This license ensures that copyright holders—such as songwriters and composers—are fairly compensated for the use of their work in public settings.

Example: A café playing popular songs for customers needs a public performance license to legally play music and ensure artists receive royalties.

Exceptions:

Face-to-Face Teaching or Worship Services: Non-profit institutions conducting live teaching activities or worship services do not require a public performance license unless the performance is recorded or broadcasted.
Small Business Exception: Under federal law, small businesses may qualify for a public performance license exemption when playing music via specific methods, such as a licensed radio or TV broadcast. This exception applies under the following conditions:
- The business uses no more than six speakers, with no more than four in one room or space.
- For TV use, there must be no more than four televisions, with screens no larger than 55 inches, and no more than one TV per room.
- The music must originate from a source already licensed for public performance (e.g., a radio station or TV network).

This federal exemption is narrowly defined, ensuring that small businesses can play music in a way that remains compliant with copyright laws while reducing the burden of obtaining additional licenses. Businesses that go beyond these specific conditions, such as using a custom playlist or live DJ, will still need to secure the appropriate public performance license.

By understanding these rules, small businesses can avoid unnecessary costs while respecting the rights of music creators.

3. Mechanical License

Modern music typically includes two distinct copyright elements:

The Composition: This refers to the musical score and lyrics. Each of these components may have separate copyrights, often held by different parties.
The Sound Recording: This covers the actual recorded performance of the composition. It applies to tangible formats like vinyl, cassette tapes, CDs, and digital files (e.g., MP3s), as well as public performances of the recording, such as radio broadcasts.

The copyrights for the composition and the sound recording are often owned by separate entities. For example, the composition rights may belong to the songwriter or music publisher, while the sound recording rights are typically held by the recording artist or their label.

What Is a Mechanical License?

A mechanical license is a legal authorization granted by the copyright holder of a composition or musical work. It allows another party to reproduce, distribute, or use specific parts of the original composition, such as for a cover version or sample.

In U.S. copyright law, mechanical licenses are compulsory, meaning anyone can obtain them without the copyright holder’s explicit permission by paying a standardized license fee. As of 2018, these fees are:

9.1 cents per composition, or
1.75 cents per minute of the composition, whichever is greater.

These payments go to the composition copyright holder and are typically facilitated by organizations like the Harry Fox Agency, which either represents the copyright holders directly or ensures the fees reach the rightful parties.

Mechanical Licenses vs. Sound Recording Rights

A mechanical license only applies to the composition (the musical score and lyrics). If you intend to use the specific recorded version of a song (the sound recording), you need a separate license for the sound recording. This license is non-mechanical and must be obtained directly from the copyright holder of the sound recording—usually the performer or their representative, such as a record label.

Understanding the distinction between these two licenses is crucial to ensure proper legal use of music in any project.

Mechanical licenses are required to reproduce and distribute copyrighted music in audio-only formats, such as physical CDs, digital downloads, or streaming platforms.

Example: A musician recording and selling a cover version of a famous song needs a mechanical license to distribute the track legally.

If you add visuals to your cover, you’ll need a sync license as well.

4. Master Recording License

A master recording license allows you to use a specific recorded version of a song in a project.

Example: If you’re producing a commercial and want to use a well-known artist’s recording of a song, you need a master recording license from the record label.

Note: To use the recording in visual media, you’ll also need a sync license; for audio-only distribution, a mechanical license is required.

5. Print License

A print license is required to reproduce and distribute sheet music or lyrics of copyrighted songs.

Example: A music teacher distributing sheet music to students needs a print license to do so legally.

6. Blanket License

A blanket license grants access to a broad catalog of music for specific uses, such as playing music in a nightclub, radio station, or streaming service.

Example: A radio station uses a blanket license from a PRO to play songs from various artists without individually negotiating licenses.

Other Music Licensing Options

Royalty-Free Music

A royalty-free license allows users to pay a one-time fee to use a track without ongoing royalties. Note that royalty-free doesn’t mean copyright-free; you still need to purchase a license to use the track legally.

Example: Royalty-free platforms like Epidemic Sound simplify licensing, allowing creators to use music without worrying about complex royalty arrangements.

Public Domain Music

Music in the public domain is free to use without permission or licensing fees. These works have either never been copyrighted or their copyright has expired.

Example: Classical compositions by Beethoven or Mozart are public domain, but recordings of these works may still be copyrighted, so verify the status carefully.

Role of PROs and Music Rights Organizations

Performance Rights Organizations (PROs) like ASCAP, BMI, and SESAC manage the performance rights for songwriters and composers, ensuring they receive royalties when their music is performed, broadcasted, or streamed.

If you plan to use music in a public setting or as part of a commercial enterprise, you’ll likely work with a PRO to obtain the necessary licenses.

Conclusion

Understanding and navigating music licensing is crucial for anyone using music in their projects. Whether you’re a content creator, musician, or business owner, knowing the types of licenses and how they apply ensures you use music legally while supporting the artists behind the work. By securing the appropriate licenses, you can create and share your projects confidently, free from legal concerns.