Can I play YouTube in my business legally?

Playing music in your business elevates the atmosphere and creates a more welcoming environment for customers. However, playing music protected by copyright in your business without a licence or permission from copyright owners, including when streamed from services like YouTube, can lead to infringement of copyright. 

In Australia, courts have consistently imposed significant financial penalties on businesses that perform music without the appropriate permissions. 

This guide explains whether you can use YouTube in your business and why a OneMusic licence enables Australian businesses to play music protected by copyright. 

What is YouTube?

YouTube is an online video-sharing platform owned by Google LLC founded in 2005.

It is one of the largest providers of user generated and professional audio-visual content, with more than 2.7 billion monthly active users. 

Can I play YouTube in my business? 

Businesses should be aware that using YouTube in a commercial setting, like stores, cafés, dance schools or offices etc, is likely a breach of YouTube’s Terms of Service.

In any case, no matter where you have sourced your music from, if you play copyright-protected music in your business then you will likely need a public performance music licence. OneMusic is not a music supplier, like YouTube, but instead issues ‘public performance’ music licences on behalf of music creators from Australia and all around the world. 

Want to legally play music in your business? Get a OneMusic licence today. 

What are the penalties to a business for playing content from YouTube without a music licence?

Firstly, as set out in YouTube’s terms of service, YouTube can only be used for personal, non-commercial use. So, if you play YouTube in your business, you are probably in breach of your agreement with YouTube.

But, in any case, businesses that play copyright-protected music from YouTube (or from any other source) without an appropriate ‘public performance’ licence may also be infringing the copyright in that music.

In Australia, the Copyright Act (1968) makes it a legal requirement to get permission to play copyright-protected music in a business setting, regardless of where that music comes from or what industry you operate in - a retail shop, office, fitness centre or at a public event.

So, businesses that play copyright-protected content, whether that’s from YouTube or somewhere else, may be infringing the copyright in that music unless they have an appropriate ‘public performance’ licence. Failing to obtain a music licence can result in a court ordering payment of significant financial damages that result in costs for a business that are far greater than the original licence fees they would have originally paid.  

In one case, a Melbourne hospitality venue was fined nearly $200,000 for playing popular music without a licence. The judgement handed down by the Federal Circuit Court found that the business owner disregarded the rights of musicians despite numerous attempts at contact. 

Copyright law exists to protect creators from losing income from their creative works, so it not only pays for business owners to be aware of their legal obligations, it also helps artists continue to create the music we all love. 

In short, every business that plays copyright-protected music likely requires permission to ensure they are not infringing copyright and risking significant financial consequences. Acquiring a OneMusic licence is an easy way for businesses to obtain permission to legally play the vast majority of the world’s repertoire of copyright-protected music in their business. 

Are there any alternatives to YouTube for my business?

To avoid breaching the YouTube’s terms of use, you can opt for music services that are intended for use in businesses. These services are called Commercial Background Music Suppliers.

While some Commercial Background Music Suppliers include a OneMusic ‘public performance’ licence in their price, others don’t. In any case, even if you use a Commercial Background Music Supplier, a licence to play copyright-protected music would still be needed (unless that supplier was only delivering music that does not require a ‘public performance’ licence). 

A OneMusic ‘public performance’ licence is not required if you only play: 

• music that is 'out of copyright'– but you need to be careful as even older songs can still retain copyright, for instance in the recording of the song or when it’s a fresh ‘arrangement’ of that song;
• music that is still protected by copyright, but the rightsholders have not given their rights to OneMusic. This includes what’s known as "royalty-free" music, although you need to be careful because not all "royalty-free" music is able to be played without a licence.
• music that is still protected by copyright, but where the rights holders have licensed those rights directly to the music user; and  
• music which is has been specially written for dramatic performances - also known as Grand Right Works. To use this music, you need to get direct permission from the copyright holder, who is usually the music publisher.