Music Licensing Explained: A Beginner’s Guide for Brand Marketers

Trending sounds. That new Drake drop. Cool noises that just sound like your brand. There’s no shortage of sonic assets out there — but can you legally use them?

It’s complicated. We know… music licensing is far less exciting than creating beautiful brand assets and logos or executing a brand-forward campaign. But without proper licensing, that sound accompanying your campaigns — the one that’s a total vibe — can get you in hot water, and fast.

So we’re breaking down the different types of music licenses for commercial use, how to use them, and how you can get a commercial license. Here it is, music licensing explained.

What are Music Licenses for Commercial Use?

"Music licenses for commercial use" sounds like a complex phrase full of legal implications, but it's not all that complicated.

Simply put, a music license for commercial use gives you the legal right to use copyrighted music or sounds for projects intended to promote a product, service, or brand. Some of these uses include:

• Paid out-of-home advertisements

• TV commercials that include jingles or background music

• Social campaigns that use trending sounds or tracks by popular artists

• Mobile apps that use sound to create more intuitive user experiences

Think of it as the copyright holder saying, "Yes, you can use my music for your project." But keep in mind that different uses require different licenses. You might even need multiple licenses depending on how you intend to use the music or sounds.

Why Do Music Licenses Matter?

You're a brand marketer — you already know that the most effective marketing campaigns combine story with emotion. And what evokes emotion better than almost anything else? Sound.

“Research has shown that sound can improve branded attention in ads by 8.5x, more than visual logos, slogans, and celebrity endorsements combined.”

Source: Ipsos - The Power of You

Music and sound can help rake in hundreds, thousands, or even millions of dollars in revenue. But shouldn't the person who copyrighted the music and contributed to your ROI get paid, too? That's where music licenses come into play.

Without music licenses, you're using copyrighted works without permission and potentially making money off those works — opening you up to hefty fines, legal trouble, and reputational damage.

And we're not talking about small pennies here. DSW, Marriott, Gymshark, and Crumbl Cookies have all been sued for copyright infringement for not having the proper music licensing, and the lawsuits range from just over $20 million to a staggering $140 million.

Music Licensing Explained: The 5 Most Common Types of Music Licenses

So, we've agreed — you need one or multiple music licenses for your commercial projects. But which ones? Let's explore the five most common music licenses, how to use them, and how to get them.

1. Blanket Licenses

Think of blanket licenses like your bed comforter — it covers you from head to toe. Blanket licenses do the same, covering all copyrighted music within a specific catalog for use in your business. 

Who Issues Blanket Licenses (and How Do I Get Them)?

Performing rights organizations (PROs) most commonly issue blanket licenses to businesses to cover public performances, like playing songs in a retail store or restaurant. 

PROs act as collective intermediaries between copyright owners — like record labels, artists, and music composers — and businesses. Some of the most well-known PROs in the US include:

• ASCAP

• BMI

• SESAC

If you need a blanket license, you'll need to contact a PRO, mechanical rights society, or simply use a licensed music library, like Continuum™, our all-in-one branded music platform. 

You can also work with companies like Made Music Studio for support. We have over 60,000 licensed songs and sounds available on Continuum, speeding up and simplifying the process.

Why Blanket Licenses Matter

Outside of ensuring legal compliance and fair compensation for intellectual property owners, blanket licenses streamline operations by giving you a single license that covers everything you need.

Instead of getting individual licenses for every copyrighted work or playlist, a blanket license gives you full access to everything within a specific catalog, typically for a set annual fee — no need to keep going back to the copyright owner to get more licenses for different songs. 

You can specify which media use is included in the blanket license (radio only, digital only, public performance only) to flex it to your brand’s needs.

Blanket licenses are especially helpful for businesses that play a lot of music, like retail shops, gyms, restaurants, or television networks or programming.

Pro tip: Different PROs own different catalogs, so having a blanket license from one PRO doesn't mean you can play music from another PRO. Confirm that the musical composition you want to use is indeed licensed with the PRO you work with. If not, you'll need another blanket license with the PRO who holds the licensing rights.

Blanket Licenses in the Real World

You've spent months building an unforgettable campaign to build buzz and drive brand awareness and growth. You want to make it an omnichannel campaign, so you decide to host a pop-up shop in your hottest market.

You'd like to play music that'll reinforce the brand vibe, so you obtain a blanket license for a specially curated playlist. Now that background music you're blasting at your pop-up shop creates an immersive, on-brand sound experience, instead of potentially costing you thousands in copyright infringement legal fees.

Or maybe you have hundreds of retail stores and need to play music for hours on end. That blanket license lets you use all the works within a catalog, so your customers never get bored of hearing the same playlists on repeat.

2. Master Licenses

Blanket licenses are pretty straightforward and easy, whereas a master license is a bit more complicated. A master license grants the right to use a specific recording of a song, but there’s a catch: obtaining the master license is only part of the process.

If you want to pair this music with visual elements — like in commercials, TV shows, and movies — you'll also need a synchronization (sync) license.

Master licenses only apply to a specific sound recording, typically a pre-recorded version of a single song — known as the master recording. Think of it as a specific version of a track: you wouldn’t be licensing the song “Maggie’s Farm,” but rather Bob Dylan’s Live At Newport Folk Festival - 1965 version of it.

If you plan to remix or otherwise use that master recording, you’ll also need a mechanical license. The master license covers the right to use that specific sound recording, while the mechanical license covers the right to use the song by the original composer. 

So if you wanted to remix or sample Whitney Houston's “I Will Always Love You,” the fee from the master license would go to Whitney’s estate, and the fee from the mechanical license would go to Dolly Parton (who else knew this fun fact that this song was a cover?).

Who Issues Master Licenses (and How Do I Get Them)?

Master licenses are often more complex because you’re dealing directly with the rights holder instead of a collective organization, like a PRO. You’re bound by whatever approvals, pricing, and timeline they elect to operate on.

And only in the best-case scenarios are you dealing with a single entity. Depending on the agreements in place, you might need to get approval from the record label, the publisher, and multiple artists and composers if the song’s co-written.

With multiple parties involved, it can be an expensive, difficult, and precarious process for brand or production teams. Thankfully, there are companies that specialize in requesting, negotiating, and processing music licenses on behalf of others.

If you need help navigating it all, you can reach out to music agencies like Made Music Studio to get support with licensing tracks for your next project. 

Why Master Licenses Matter

Master licenses make sure you're using music ethically and legally (by paying the required fees to artists and record labels) and complying with copyright laws. Copyright infringement is no joke, and if you don't take it seriously, expect costly fines and a hit to your reputation

Master licenses also allow you to work with more premium music options. While royalty-free or public domain (free) tracks can work, if you want hyper-relevant campaigns that make your audience feel something with a famous track they’re familiar with, you'll need that master license. 

Not sure which type of music to use for your commercial project? Check out this blog.

Pro tip: If you want to use pre-recorded music against any visuals (on television, YouTube, and more), you'll need both a master and sync license.

Master Licenses in the Real World

You're a sassy, bold women's empowerment brand leading a national TV campaign promoting your line of comfortable yet sexy stilettos. The edgy commercial demands a song that packs just as much attitude and oomph.

Morgan St. Jean's "Do It Like A Girl" is perfect. So you get a master license (and sync license) and launch the emotionally-charged campaign. You've covered your bases with the licenses, so you don't have to worry about copyright lawsuits digging into campaign ROI.

Want an on-brand sound that evokes emotion and is instantly recognizable as your brand? We create custom compositions that do just that.

3. Mechanical Licenses

A mechanical license gives you the right to reproduce and distribute a copyrighted song or track in an audio-only format. These are required any time you stream songs on services like Spotify or release them on physical media, like CDs or vinyl.

These are often much less expensive and difficult to obtain than master licenses, so much so that it’s common (and cheaper) for a brand to get the mechanical license for a song and hire an artist to record a cover to use in their campaigns.

So all of those cover songs you hear in movie trailers? They might be a creative decision, but they also might be helping companies save time and money on music licensing.

Remember, this is for the audio-only recording. Just like the master license, you'll also need to get a sync license if you want to use the song or track with visual assets or media, like social posts or commercials.

Who Issues Mechanical Licenses (and How Do I Get Them)?

In the United States, once an artist releases a song, a mechanical license is compulsory, meaning it’s available to anyone who wants to record and distribute the track. In other words, once you put music out there, anyone and everyone is allowed to make as many covers of the track as they want — as long as they obtain a mechanical license.

There’s more government involvement with mechanical licenses than other music licenses, as availability to cover any track is dictated by US copyright law, and the rate that someone has to pay to get a mechanical license is set by the Copyright Royalty Board. That said, you don’t need to deal with Uncle Sam to get one.

In the US, there are two main licensing entities you can work with: 

• The Harry Fox Agency

• Music Reports

Like PROs, these agencies collect and distribute royalties to music publishers who register their tracks with them, who then pay artists and composers. Publishers will register with dozens, if not hundreds, of societies like The Mechanical Licensing Collective (MLC) to collect and distribute royalties.

Why Mechanical Licenses Matter

We know — keeping up with all the different licenses and going through the process to actually get them can be a pain. But there's a reason they're so important.

Mechanical licenses help you stay on the right side of the legal line. Because legally, they protect your brand from fees, lawsuits, and content takedowns. 

Whether you’re sharing a mashup on Spotify or need a budget-friendly approach to recording a track for your campaign, you’ll need to start with the mechanical license.

Pro tip: Like most other licenses in this list, you'll need a sync license if you plan to pair the music with visuals, like in a YouTube video, social post, or television ad. Mechanical licenses cover audio-only usage.

Mechanical Licenses in the Real World

Let's say you just launched a podcast that interviews tech startup founders and uses background music to transition between segments. You don't want typical elevator music — you're looking for instrumental versions of popular songs that align with your brand.

It hits you: "HUMBLE." by Kendrick Lamar is exactly the vibe. You secure a mechanical license that lets you recreate your own version of the track’s instrumentals. Your podcast is poppin', the music's a vibe, and all the legal stuff's covered. You're good to go.

4. Public Performance Licenses

Public performance licenses are significantly more straightforward than master or mechanical licenses. They give you the right to play a song in public, on television or radio broadcasts, or through digital streaming.

As a general rule of thumb, if people outside of your home or office can hear the music, you need a public performance license, even if you’re only using a 2-second clip of a track.

Here are a few examples:

• Playing background music at your coffee shop or retail store

• Hosting a live event or conference that plays copyrighted music

• Any broadcast through radio, streaming platforms, or TV

And if this is starting to sound similar to blanket licenses, great! One of the most common use cases for blanket licenses is to cover public performances. Where blanket licenses provide you access to multiple tracks or an entire catalog, you can use a public performance license to target one-off needs for single tracks to meet budgetary or campaign needs.

Who Issues Public Performance Licenses (and How Do I Get Them)?

Just like with blanket licenses, PROs typically issue public performance licenses, collecting and distributing the fees to copyright owners. And you may need to get these licenses from multiple PROs, depending on what tracks you’re looking to cover. 

And remember, if you want to use this music with visuals, you'll need a sync license as well. 

Pro tip: Want a faster, simpler way to find tracks to play at your annual conference or in your shop? Some Continuum clients have expanded their catalog’s access to include public performance rights, so you can get the brand music you need without the headache.

Why Public Performance Licenses Matter

Sure, you want to avoid legal hot water and fallout from copyright infringement. But public performance licenses also make sure creators get paid fairly for the music and sounds that bring in revenue from the marketing initiatives that use them.

Imagine putting months into a live activation focused around a specific track only to have it fall apart because legal tells you have to cancel the event because no one got the public performance license required.

Instead of an incredible activation that gains positive brand recognition, you have a generic event with indistinct royalty-free music acquired at the last minute.

Public Performance Licenses in the Real World

Imagine you're a design agency that's built quite a reputation for your annual design conferences. You want to go big this year for the new product you're debuting at the conference.

You have stunning visual elements, interactive product demos, and a curated playlist that's funky, upbeat, and fun. You got a public performance license for each of the tracks you play, so you can enjoy the conference and product campaign without worrying about copyright issues mid-campaign.

5. Synchronization Licenses

As a brand marketer, your campaigns likely combine music and visuals, which typically require multiple licenses. One of those is the synchronization license. It grants permission to synchronize copyrighted music and visual media — think television commercials, YouTube videos, social ads, or videos on in-store displays. 

Who Issues Synchronization Licenses (and How Do I Get Them)?

Like mechanical licenses, obtaining sync licenses can be a bit complicated. You need to negotiate directly with the owner of the master recording and the owner of the composition — they can be multiple parties, so terms and prices can vary wildly. 

Some factors that influence terms or pricing include:

• How long you want to use the music (the length of your campaign)

• Where the campaign will run (geographically)

• Whether it's an exclusive license or others can license the music

• How popular the song is

• How much of the track you'll feature in the campaign

• How you'll use the music

If you want to speed up the process, you might consider working with a licensing agency or a curated music catalog, like Continuum. These platforms typically provide licensed tracks that are “pre-cleared” (they’ve done the negotiating with all parties) to help you launch faster.

Why Synchronization Licenses Matter

You don't need to look further than non-profits to understand the power of sync licenses. They've mastered the art of combining music and visual storytelling to elicit emotion and get you to donate to their causes. And it works.

You get emotional as you hear "Angel" by Sarah McLachlan play over videos of shelter animals, and then you either give extra love to your dog, donate, or feel guilty if you don’t support the cause. Imagine how different this campaign would be if you removed the music. Music enhances the emotional impact of your campaigns.

Sync licenses make sure you can amplify that emotional impact by covering the use of the music with visual media. They can also drive brand awareness across a broader audience by giving you the legal right to use popular songs that expose your brand to a wider or entirely new audience.

And like with any other license, sync licenses protect your brand from copyright infringement, legal fees, and reputational damage from unethical creator usage practices.

Synchronization Licenses in the Real World

Let's say you just dropped a new shoe as part of Jayson Tatum's Tatum 3's collection. You're launching a national television campaign — just like JT, it's high-energy and features vibrant colors, JT's signature moves, and close-ups of the new shoes on the court.

You want the campaign to be bold and confident, so you license a track with a strong beat and hip-hop vibes that instantly grabs attention. And because you plan to run the ad on TV and clips on YouTube, you secure a sync license for each platform. 

The visuals and music are a powerful combination for your target audience — and thanks to the sync license, fully legal.

Bring Your Marketing Campaigns to Life — Legally and Ethically — with the Right Music Licenses

And there you have it, music licensing explained.

Navigating music licensing for commercial use can seem daunting, but understanding the different licenses and how they work can help you launch your marketing initiatives without worrying about infringing on copyrights, using someone else's work without paying them, or having to stop mid-campaign due to violations.

If you launch your campaigns without getting the proper licenses, expect costly legal battles, fines, and serious reputational damage. Or, you can protect your brand and your campaigns by getting the licenses you need.

Continuum makes it simple. Our all-in-one branded platform helps you find and manage 60,000+ pre-cleared audio assets without the headache. Use our AI-powered search tool to find tracks inspired by trending songs and artists or create a fully custom playlist.

Get in touch to learn more about Continuum and how sonic branding can breathe new life into your next marketing campaign.