Why should a business pay for phone on hold music? Because the law requires it, songwriters, composers, and publishers deserve fair compensation. Understanding on hold music licensing ensures you’re doing right by artists while protecting your business from costly penalties.
“Songwriters, composers, and music publishers have the exclusive right of public performance of their musical works under U.S. copyright law. Therefore, any public performance requires permission from the copyright owner.” — BMI
“When you place a caller on hold and transmit music via your telephone lines, that is a public performance of the music. It is your responsibility to obtain permission.” — ASCAP
What Is a Public Performance?
A “public performance” isn’t limited to concerts or radio broadcasts. It includes any instance where music is played outside personal use—like in your store, office, or over the phone when customers are on hold. PROs (Performance Rights Organizations) collect royalties for these performances and distribute them to the creators.
Why On Hold Music Licensing Matters
Without proper licensing, your business risks legal action. Managing multiple licenses from ASCAP, BMI, SESAC, and GMR can be complex and expensive. That’s where professional services like Easy On Hold® come in—we handle licensing for you. Music licensing is an important consideration for hold music.
Common Mistakes That Lead to Licensing Violations
- 📻 Using FM/AM or SiriusXM radio for hold music – Not Legal
- 🎵 Streaming services like Spotify, Pandora, or Amazon Music – Not Legal
- 💿 Playing purchased songs from iTunes or CDs – Not Legal
- 🎼 Classical music recordings – Usually Not Legal
- 📞 Default phone system music – Possibly Legal, but verify licensing
A Real-World Example
Before founding Easy On Hold®, Tim Brown experienced first-hand why random radio isn’t ideal. While on hold with a restaurant, he heard a commercial—for a competing restaurant! He hung up and dined elsewhere. This highlights why unlicensed (and unpredictable) music sources can hurt your business beyond legal risks.
Meet The PROs: Who Controls Music Licensing?
Four main PROs manage music rights in the U.S. Each licenses only its own catalog:
- ASCAP: American Society of Composers, Authors, and Publishers
- BMI: Broadcast Music, Inc.
- SESAC: Society of European Stage Authors and Composers
- GMR: Global Music Rights
Some businesses attempt to purchase “blanket licenses” from each PRO, but this can cost thousands annually and still leave gaps.
Is Your On Hold Music Legal? Quick Compliance Checklist
Make sure you’re using legal hold music. Use this checklist to audit your current setup.
- ✅ Are you using a professional service that handles PRO licensing?
- ✅ Have you verified that your hold music isn’t sourced from personal streaming platforms?
- ✅ Do you avoid using radio broadcasts or personal music libraries?
- ✅ Is your phone system’s default music confirmed as royalty-free or properly licensed?
- ✅ Do you have documentation proving your licensing compliance?
Other Business Music Licensing Considerations
Remember, licensing laws apply beyond phone systems. For example, playing music in waiting areas, offering live performances, providing TV programming, or running fitness classes may require separate licenses.
The Easy Solution: Licensed Streaming from Easy On Hold®
Why navigate the maze of licensing yourself? With Easy On Hold®, your business gets fully licensed, high-quality streaming music and messaging for phones, lobbies, and more. We handle all PRO fees so you stay compliant—effortlessly.
Contact Easy On Hold today for a free consultation and ensure your on hold music is 100% legal in 2025 and beyond.
