Can Charlotte Businesses Legally Play Spotify? A Guide to Music Licensing |
BoatYard Lake Norman Lawsuit: The Music Licensing Mistake That Could Cost Charlotte Businesses Thousands |
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Walk into almost any Charlotte business and you’ll probably hear music.
A coffee shop in NoDa. A brewery in LoSo. A boutique in Plaza Midwood. A fitness studio in Ballantyne. A restaurant in South End. A salon in Dilworth. A lakefront bar near Lake Norman.
Music helps set the mood. It makes the space feel alive. It keeps customers comfortable, helps employees get through the day, and gives a business part of its personality.
But here is the part many business owners miss:
Paying for Spotify, Apple Music, YouTube Premium or another personal streaming service does not automatically give your business the legal right to play that music for customers.
That issue is getting fresh attention after BoatYard Lake Norman was named in a federal copyright lawsuit involving ASCAP and several music publishers over alleged unlicensed public performances of copyrighted songs.
Regardless of how that case plays out, it is a timely reminder for restaurants, breweries, bars, salons, gyms, retailers, offices and event venues across the Charlotte area:
If customers can hear the music, you need to understand whether your business is properly licensed.
Can Charlotte Businesses Legally Play Spotify?
The short answer: not usually with a personal account.
Consumer streaming accounts are typically designed for private, personal listening. That means listening at home, in your car, or on your headphones.
A business is different.
When music is played in a space where customers, clients, members or guests can hear it, that may count as a public performance. Public performances generally require permission from the copyright owners or the organizations that represent them.
That is why a $10 or $15 monthly personal streaming subscription is not the same thing as a commercial music license.
What Is a Public Performance License?
A public performance license gives a business permission to play certain copyrighted music in a public or commercial setting.
For example, playing a song in your kitchen at home is private use.
Playing that same song over the speakers in your restaurant, brewery, boutique, gym, office waiting room or event venue can be public use.
That distinction matters because music has owners.
The singer may be famous, but the rights may also involve songwriters, composers and publishers. These groups are paid when their music is performed publicly.
Which Charlotte Businesses Should Pay Attention?
This is not just an issue for concert venues or nightclubs.
Music licensing can matter for many customer-facing businesses across Charlotte and the surrounding area, including:
If the music is audible to customers, members, guests or clients, the business should take a closer look.
Who Collects Music Licensing Fees?
In the United States, music licensing is often handled by Performing Rights Organizations, also known as PROs.
These organizations represent songwriters, composers and publishers. They collect licensing fees from businesses and distribute royalties to the people who own or control the music rights.
The major organizations include:
One important detail: one license may not cover every song.
If your playlist includes songs represented by different organizations, your business may need multiple licenses or a commercial music provider that helps handle licensing.
What the BoatYard Lake Norman Lawsuit Teaches Us
The BoatYard Lake Norman lawsuit is not just a local headline. It is a useful case study for Charlotte business owners.
The lawsuit alleges that copyrighted songs were publicly performed without proper licensing. It also claims that licensing representatives tried to contact the business multiple times before the lawsuit was filed.
The biggest lesson is not that every business should panic.
The lesson is that business owners should not ignore the issue.
If ASCAP, BMI, SESAC, GMR or another licensing organization contacts your business, do not toss the letter in a drawer. Review it, ask questions, document your current music setup and consider getting legal guidance if needed.
Common Music Licensing Myths That Get Businesses in Trouble
Myth 1: “I pay for Spotify, so I’m covered.”
Personal streaming plans usually do not cover commercial use inside a business.
Myth 2: “The DJ is responsible, not me.”
The venue may still have responsibility because the music is being publicly performed on its premises.
Myth 3: “The band is playing covers, so it’s fine.”
Cover songs can still involve copyrighted compositions that require public performance licensing.
Myth 4: “We are too small for anyone to notice.”
Small businesses can still receive licensing notices, especially if they advertise live music, DJs, karaoke or events online.
Myth 5: “We only play music on the patio.”
Outdoor speakers, patios, rooftops and event spaces can still be part of the public customer experience.
How Charlotte Businesses Can Stay Compliant
There are a few common ways businesses handle music legally.
Option 1: Use a commercial music service.
Some services are built specifically for businesses and may include licensing support as part of the subscription.
Examples include:
Option 2: Get licenses directly from PROs.
Some businesses secure blanket licenses directly from ASCAP, BMI, SESAC and other organizations depending on what music they use.
Option 3: Use properly licensed royalty-free or commercial-use music.
This may work for certain retail, office or content-focused spaces, but business owners should verify the terms carefully.
What To Do If You Already Received a Licensing Letter
If your Charlotte business has already received a letter, email or call from a music licensing organization, take it seriously.
Do not ignore it.
Instead:
The Bottom Line for Charlotte Business Owners
Charlotte’s small business scene is built on experience.
The food, the lighting, the staff, the design and yes, the music, all shape how customers feel when they walk through the door.
The BoatYard Lake Norman lawsuit is a reminder that the music part of that experience should not be treated as an afterthought.
Whether you run a restaurant in South End, a brewery in LoSo, a salon in Plaza Midwood, a gym in Ballantyne, a boutique in SouthPark or an event venue near Lake Norman, take a few minutes to review your setup.
A proper commercial music setup is usually much cheaper than a copyright dispute.
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