Whether it’s background music in a boutique or live entertainment in a restaurant, music can elevate the customer experience. But for businesses, playing music publicly isn’t just a creative choice, it’s a legal one. If your business uses music in any public setting, you may need a license from the Musical Copyright Society Nigeria (MCSN).
As a non-profit body representing the authors, composers, performers, producers, labels, and publishers of music, MCSN ensures that the rightful owners of music receive the royalties they deserve for their creative work. By obtaining an MCSN license, you can legally use commercial music without worrying about legal repercussions.
This guide covers exactly who needs one, who doesn’t, and how to determine your obligations under the Copyright Act 2022.
What Is a Music License?
A music license is permission to use copyrighted music in a specific way. It doesn’t make you the owner; the songwriter, composer, performer or record label keeps ownership. It gives you legal permission to play or perform the music in your business.
The Musical Copyright Society Nigeria (MCSN) is the Nigerian Copyright Commission-approved body that issues these licenses on behalf of rights owners. When you license music from MCSN, you’re paying a fee that covers the entire MCSN repertoire, and that money is distributed to the creators whose music you use.
What a Music License Actually Covers
An MCSN music license authorizes you to perform and use the musical works and sound recordings in the MCSN repertoire in the specified way.
It does not normally cover:
- Synchronization rights for advertisements or films you’re producing
- Permission to reproduce music on products you’re selling
- Artist booking or performance contracts
- Consumer streaming subscriptions for staff headphones
- Uses outside the scope of your license (e.g., a venue license doesn’t cover online streaming of an event)
Get the license that matches your actual use. Don’t assume one document covers every possible exploitation of music.
When Does a Business Need a Music Licence?
Under the Nigerian copyright law, playing music in a business setting typically qualifies as a “public performance,” which requires a license. This includes:
- Playing recorded music from CDs, MP3s, or streaming services
- Hosting live music performances (including cover bands)
- Using music in videos or presentations
- Playing music on hold for phone systems
- Broadcasting music via loudspeakers in public areas
Public doesn’t mean outdoors, ticketed, or crowded, it means outside a domestic setting. Even if you’ve purchased the music (e.g., a CD or digital download), that purchase only grants you private listening rights, not the right to publicly perform the music.
Who Definitely Needs a Music License for Business
All places where music is played publicly need an MCSN license. These include:
- Gaming arcades, amusement parks, multiplexes, showrooms, supermarkets, departmental stores, office spaces, malls, and retail outlets.
- Live Events, Concerts, Music Festivals, Award Ceremonies, and various Roadshows with recorded music or live music performances.
- Pubs and Discos, Clubs, Restaurants, Bars, Cafes, Lounges, Office Canteens, Eating Houses, and similar places playing live or recorded music.
- Stadiums, Sporting arenas, and Sport event organizers, playing live or recorded music during events.
- Aircraft, Cruise Liners, Railways, and commercial Motor Vehicles as well as waiting rooms and travel lounges.
- DJs who store music to play publicly at various events and venues
- Gyms, Salons, Parlours, and other Service-oriented premises playing ambient music.
- Hotels, guest houses, motels, or any other boarding & lodging premises, playing music to entertain guests either through ambient or live music.
- Commercial Banquets and Auditoriums which host events using music.
- Music license for band performances, as well as music broadcasting on television and radio.
- Music license for online music streaming, both interactive and non-interactive.
- Music license for caller ringback tune
- Music license for singers performing at your establishment, usage of sounds or music on commercial television, advertisement, and so on.
Grey Licence Areas Worth Clarifying With MCSN
These scenarios sit in the middle and deserve clarification before you assume you’re either covered or exempt:
Advertising, film and social media campaigns: Putting an existing song under a TV commercial, a YouTube ad, or branded video content is a synchronisation use, a different right from simply playing music in your premises. A premises licence does not cover this. Clear it separately, before you publish.
Commissioned or employee-created music: If you pay a composer, producer or employee to create original music, ownership and permitted use should be settled in the contract, who owns the composition, who owns the recording, what uses are allowed, for how long. Paying someone to make music doesn’t automatically answer every copyright question; a written agreement does.
“Royalty-free” music: Royalty-free doesn’t mean copyright-free. It means a licence was granted under specific terms, and those terms have limits, a licence permitting website use might exclude paid advertising, for instance. Read what it actually permits rather than trusting the label.
DJs and live bands: Paying a performer covers their appearance fee. It does not license the compositions they cover or the recordings played between sets. The venue’s obligation and the performer’s obligation are separate.
Weddings and one-off events: A hotel ballroom’s standing licence does not automatically extend to a ticketed show or a hired-in event held there. Confirm scope in writing rather than assuming coverage.
Chains and franchises: Each location that plays music needs its own cover. One head-office subscription doesn’t license twenty branches.
Online and digital use: A Zoom fitness class with music, a livestreamed event, background music on a website, all reach a public audience just as a physical venue does. The channel is different; the obligation isn’t.
Home-based businesses with clients: A salon or tailoring business run from your home where clients visit is arguably open to the public. If clients hear music, you should license it.
The Music Licence Arguments That Don’t Work
These are the most common misconceptions business owners use to avoid licensing and they all fail:
“It’s only background music.”
Background music is still public performance. Whether customers are actively listening has no bearing on the legal test.
“We don’t charge entry or admission.”
Free admission doesn’t cancel copyright. The music is still being used commercially to create an experience.
“We already pay for Spotify/Apple Music/YouTube.”
Consumer subscriptions explicitly prohibit public performance. Their terms of service say so. Using them in a business violates both copyright law and the platform’s agreement.
“We bought the CD/downloaded the file.”
Buying a copy gives you the copy, not the copyright. The rights owner still owns and controls the music.
“We paid the DJ/live band.”
That payment covers the performer’s fee. It doesn’t settle copyright obligations. The venue still needs a license.
“The radio is playing; customers hear it.”
A radio playing to customers is still a public performance and still requires licensing.
“We only play Nigerian gospel/indie/our friend’s music.”
Those works are still protected by copyright. Your friend’s permission covers only their share of the song, not every co-writer, publisher or master owner.
“We’re a small business/NGO/school/government office.”
Legal form and size don’t exempt you. The Copyright Act applies regardless.
“It’s a one-off event.”
Temporary doesn’t mean unlicensed. MCSN can issue short-term event licenses.
“Our landlord/event centre should have it.”
Responsibility typically lies with whoever provides the music and whoever occupies the space. Confirm in writing who’s responsible.
“We stream our event on Instagram Live.”
That’s another public performance — the online audience counts. Both your premises and online use may need to be licensed.
When you likely don’t need a Music Licence
- Music playing only in a genuinely private home setting, with no business connection
- A business that plays no music at all
- Use limited entirely to music you personally wrote, recorded and own, with no other contributor’s rights involved
- A specific, narrow exception under the Copyright Act 2022, these are limited; “commercial atmosphere” is not one of them.
If any third-party song can be heard by anyone outside your household, get the licence.
How Music License Fees Work
MCSN’s fees vary by:
- Business category (a café pays differently than a nightclub or radio station)
- Size and capacity (seating, revenue, audience size)
- How music is used (background only vs. featured entertainment)
- Duration (daily operation vs. one-off events)
MCSN publishes its tariff schedule publicly. Fees typically scale so smaller businesses pay less, making compliance feasible regardless of size.
The cost of a license is a fraction of what you’d face defending a copyright infringement claim, paying damages, or defending against a cease-and-desist order.
What Happens If You Don’t Comply?
Operating without the proper music licenses can expose businesses to legal risk. MCSN actively monitor public music use and may reach out to businesses we believe are using music without authorization. If a business is found to be in violation, it could face enforcement actions, which may include demands for licensing fees and potential legal proceedings.
While the financial consequences vary depending on the circumstances, they can be significant, especially if multiple songs or repeated violations are involved. In addition to monetary penalties, businesses may also incur legal costs and reputational damage.
To avoid these risks, it’s best to proactively assess your music use and secure the appropriate licenses before issues arise.
How to Get a Music License for Your Business
The process is straightforward:
- Identify your business type and music use: Where do you play music? How? How often?
- Determine the license type that matches your use (venue license, event license, broadcast license, etc.).
- Complete MCSN’s music-user application: Available online or as a downloadable form.
- Provide basic business information: Business name, location, type, music use details.
- Pay the applicable tariff: MCSN will provide an upfront quote based on your business.
- Receive your digital certificate: MCSN issues licenses with QR codes for easy verification.
- Display your license: Many agreements require you to display proof of licensing on your premises.
- Renew annually: Licenses expire, so renewal is necessary to maintain continuous coverage.
If you operate multiple locations, each needs its own license. If your music use changes significantly, inform MCSN to ensure you’re covered.
Who Is Responsible for Music Licensing?
The business providing the music is the first party responsible. If you own or operate the premises where music plays, you’re responsible for ensuring it’s licensed.
The venue operator can also be liable for permitting unlicensed public performance, even if someone else brought the music.
The promoter or event organizer is responsible for events they arrange.
The DJ or band can be liable for playing unlicensed music, but hiring them doesn’t transfer the venue’s responsibility.
Chains and franchises: Each location needs its own license. Head-office subscriptions to consumer music apps don’t cover branch locations.
The Bottom Line: Does Your Business Need a Music License?
If your business plays copyrighted music to the public or in a commercial setting, you almost certainly need a music license.
The law doesn’t distinguish between:
- Small and large businesses
- Busy and quiet periods
- Background and featured music
- Free and paid admission
- One-off and regular events
The only distinction is whether copyrighted music is being performed publicly or commercially. If yes, a license is required.
The good news: licensing is affordable, the process is simple, and having a license protects your business legally while supporting the creators whose music makes your business better.
If your business uses music, contact MCSN today to determine what music license you need. The cost of compliance is far smaller than the cost of operating without one.
