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1 August 2025

Music Licensing 101: How Music Licensing Works for Australian Businesses

Did you know that if you play music that is protected by copyright in your business, (whether you’re a bar, restaurant, retailer or fitness studio) without a licence or permission you risk infringing the copyright? 


Many Australian businesses are unaware that almost all commercially-available music is protected by copyright and playing that music comes with legal obligations under the Copyright Act 1968

This article explains how music licensing works for businesses and events in Australia looking to publicly perform copyright-protected music and how OneMusic distributes the fees it collects to APRA AMCOS and PPCA, the bodies behind the licensing initiative.

In Australia, music licensing grants your business permission to perform music in public. APRA AMCOS represents songwriters and publishers, and PPCA represents recording artists and labels. 

What is music licensing?

In Australia, music licensing grants your business permission to perform music in public. APRA AMCOS represents songwriters and publishers, and PPCA represents recording artists and labels. 

A OneMusic licence allows music users to more seamlessly meet their copyright obligations for the commercial use of musical works, sound recordings and music videos. If you play music protected by copyright out loud in a public place for a commercial purpose such as a shop, a gym or a bar you need permission or you need to purchase a music licence. This is called public performance of music.

A licence is needed regardless of how the music is played 

A music licence is required no matter how that copyright-protected music is played in your business. Use the quick check below to identify common ways copyright-protected music is played:

If any source above is audible in your business or at your event, you are likely using music that is protected by copyright and will need the appropriate public performance licence in Australian settings under a OneMusic licence.

How do I get a licence to play copyright-protected music in my business?

OneMusic is a joint music licensing initiative between the Australasian Performing Right Association (APRA), the Australasian Mechanical Copyright Owners Society (AMCOS) and the Phonographic Performance Company of Australia (PPCA). 

Prior to OneMusic, APRA AMCOS and PPCA issued separate music licences to businesses. In 2019, OneMusic was established to simplify the process and make it easier for businesses and individuals to play music legally at their business, event or venue.

OneMusic not only gives businesses the ability to legally play the vast majority of the world’s most popular music, but it also ensures businesses remain compliant with Australia’s copyright laws when they do so. 

Even if the copyright-protected music is played through a paid music streaming service, YouTube account, radio, or a CD, a business still needs to pay for a licence for the public performance of that music. 

Here are the different OneMusic licences.

Music streaming subscription vs music licence

Subscribing to a music streaming service, paid or free, or even turning on the radio does not automatically grant the legal right to play that music in your business. Most popular streaming services are intended for personal use only.

To play copyright-protected music in your business, you must have permission from the rights holders. A OneMusic licence grants that permission, covering a wide range of recognised local and international tracks.

Consumer streaming plans cover private listening. Business use requires a music licence that allows public performance.

How music licensing works for businesses

OneMusic brings music and business together by offering simple music licences that give you the permission you need to use our music in your business. 

  1. Purchase a OneMusic licence and unlock permission to use millions of copyright-protected songs

People invest time, money and creativity crafting music for us to enjoy. Music creators then ask APRA AMCOS and PPCA to look after certain rights on their behalf.

  1. OneMusic licenses your business

OneMusic issues licences to businesses and organisations, giving you permission you need to play this copyright-protected music.

  1. Music creators are paid their share of your licence fee

Using APRA AMCOS’ and PPCA’s huge database of songs and recordings, OneMusic ensures that music creators are paid so they can keep on making the music we love.

Where does the money from licence fees go? 

All money generated from OneMusic licences goes back to music creators as ‘royalties’ from APRA AMCOS and PPCA, minus administration costs. 

These organisations represent songwriters, composers, publishers, recording artists and labels. Licence fees are then allocated to creators after administration costs are deducted.

APRA AMCOS reported that 62,000 of their members earned royalties in the last financial year, much of that from licence fees paid by OneMusic’s customers.  

How music royalty distribution works

Licence fees from your OneMusic licence are allocated based on data from broadcasters, streaming platforms, background music suppliers, live performance reports, and approved in-venue tracking systems. This process ensures royalties go to the correct songwriters, composers, and publishers.

OneMusic simplifies copyright compliance for businesses and helps sustain Australia’s music industry by ensuring creators are paid fairly for their work.

How does OneMusic know what music I play to pay the music creators? 

OneMusic keeps track of what music is being played in Australia from data regularly drawn from radio and television stations, live performance reporting, streaming services, music recognition technology such as Audoo, and from background music supplier platforms.

Audoo is a small plug-in device that recognises copyright-protected music played in your business. It fingerprints songs, and that data helps get royalties to the creators of the music actually played.  

Licensed businesses have the option to install an Audoo Audio Meter for free

What happens if I play copyright-protected music in my business without a licence or permission? 

Playing copyright-protected music in a business without permission is likely to be an infringement of copyright and can lead to legal action and significant costs in damages and legal fees.

Keeping your OneMusic licence current satisfies the public performance licence Australia requirement for most day-to-day activities. It is the most reliable way to answer how music licensing works in a way that stands up to scrutiny.

What are my options to play music that wouldn’t need a OneMusic licence? 

If you want to play music in your business and would rather not take out a OneMusic licence, there are a few alternatives

For example, you can commission original music and obtain direct permissions from all relevant rights holders. This is often less practical than using a standard business music licence.

For most businesses, a valid OneMusic licence remains the simplest pathway under music licensing Australia.

For more information on music licensing for your specific industry, check out OneMusic’s licensing page. 

Record keeping and annual review

Keep a copy of your licence confirmation, site details and the inputs used to calculate fees. Make notes where there are changes to layout, capacity, class schedules or screens are captured before renewal. 

This supports how music licensing works in practice and avoids misrepresentation. Clear records also show that the OneMusic licence held by the business reflects current operations.

Get started

Open the OneMusic licence selection tool, choose the scheme that matches your operations, complete the online form, and keep a copy of the confirmation for your records. 

Set a yearly reminder to review your details and update them if your music use changes.

If you are still unsure about needing a licence, take a look at our Do I need a licence? page.

 

18 December 2025

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