Music shapes how customers experience a restaurant, gym, salon or shop. Many owners simply connect a phone to the speakers and press play on a personal streaming account. Few realise that playing music in a business is a separate legal act from listening at home, and that it usually needs a licence.
Collecting societies are actively enforcing these rights. In 2026, SAMRO issued summons in the High Court against a Johannesburg venue for about R1.7 million in allegedly unpaid licence fees. The same year, the Constitutional Court ruled on the long-delayed Copyright Amendment Bill and Performers’ Protection Amendment Bill, keeping copyright reform in the headlines.
This article explains which rights are involved, who licenses them, and how a business can stay compliant.
Why a streaming subscription is not enough
A personal subscription to a streaming service, a CD you bought or the radio on your counter gives you permission to listen privately. It does not give you the right to play that music to the public. Under the Copyright Act 98 of 1978, performing a musical work in public, and playing a sound recording to the public, are acts that the copyright owners control. A shop floor, a gym class, a waiting room or a restaurant is generally treated as a public place, even if only customers and staff are present.
Playing music without the necessary licences can amount to copyright infringement. Rights holders can claim damages or a reasonable royalty, and collecting societies commonly seek backdated licence fees with interest.
Three kinds of rights, three organisations
Each recorded song usually carries more than one layer of rights. That is why businesses often deal with more than one organisation.
SAMRO: the song itself
The Southern African Music Rights Organisation (SAMRO) represents composers, lyricists and music publishers. It licenses the public performance of the underlying musical work, meaning the melody and lyrics. A SAMRO licence is relevant whenever music is performed publicly, whether live by a band or from a recording.
SAMPRA: the recording
The South African Music Performance Rights Association (SAMPRA) represents record companies and recording artists. It administers the so-called needletime right, which entitles the owners of sound recordings and performers to a royalty when recordings are broadcast or played to the public. This right comes from section 9A of the Copyright Act and the Performers’ Protection Act 11 of 1967. A SAMPRA licence is relevant where recorded music is played, including through streaming, radio or a background music service.
CAPASSO: copies of the music
The Composers, Authors and Publishers Association (CAPASSO) licenses mechanical rights, meaning the right to reproduce musical works, including digital copies. Most businesses that simply play music do not need a separate CAPASSO licence. It becomes relevant where a business copies music, for example by loading tracks onto devices or servers, producing music-on-hold, using music in its own videos or adverts, or running a music or streaming platform.
Which licences does your business need?
The answer depends on how you use music:
- Background music in a shop, office reception, salon or restaurant: usually SAMRO and SAMPRA.
- Gyms and fitness classes: usually SAMRO and SAMPRA, often on a tariff that reflects that music is central to the service.
- Live performances and events: SAMRO for the songs performed, and SAMPRA if recorded music is also played, for example by a DJ.
- Music-on-hold, adverts and branded videos: licences for reproduction and synchronisation, which may involve CAPASSO, publishers and record labels directly.
- Licensed background music services: some commercial providers include certain licences in their packages, while others still require the business to hold its own. Check the contract carefully.
Licence fees are set by published tariffs. They usually depend on the type of business, the size of the premises, the number of people who can be accommodated, whether music is background or featured, and sometimes revenue. Licences generally run for 12 months and must be renewed.
What the copyright reforms mean for music users
In June 2026, the Constitutional Court delivered judgment on the constitutionality of the Copyright Amendment Bill and the Performers’ Protection Amendment Bill. It upheld most of the provisions referred to it, including the new fair use framework, but found parts of the education exception unconstitutional. The reform process is not yet complete.
For a business that plays music to customers, the core position is unlikely to change. Public performance and needletime rights remain in place, and fair use is not a substitute for a licence where music is used commercially to create atmosphere. Businesses should watch for any changes to licensing arrangements once the reforms are finalised.
Common mistakes
- Assuming a personal streaming account covers business use.
- Holding a SAMRO licence and assuming it also covers recordings, or the reverse.
- Under-declaring floor space, capacity or revenue, which can lead to backdated claims.
- Forgetting that a new branch, a bigger venue or adding live events can change the tariff.
- Signing a background music service contract without checking which licences it actually includes.
A compliance checklist
- List every place and way your business uses music, including on-hold, social media and events.
- Identify which rights are involved for each use.
- Obtain the relevant SAMRO and SAMPRA licences, and CAPASSO or direct licences where you copy or synchronise music.
- Declare accurate information about your premises and use, and keep records.
- Review your background music or AV supplier’s contract for licensing warranties and indemnities.
- Diarise renewals and update your licences when your business changes.
- If you receive a demand from a collecting society, take advice before admitting liability or paying a backdated amount.
How O’Reilly Law can help
We advise businesses, venues and event organisers on music licensing and copyright compliance, review background music and event contracts, and assist with demands and disputes involving collecting societies. We also act for artists, producers and media businesses on rights ownership, licensing and royalty agreements.
Not sure which music licences your business needs? Contact us for practical advice.
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This article is general information and not legal advice. Correct as at October 2026.