Important Notice for Business Owners

Industry Voice · 2026-01-22 · Steve Zhang

Royalty-Free” Music on YouTube Is Not Licensed for In-Store Use

Many small and medium-sized business owners believe that playing “royalty-free” music from YouTube is acceptable for use in stores, cafés, salons, gyms, and other commercial premises.

Unfortunately, this is a common misunderstanding.

1. YouTube Is Not a Commercial Music Licence

Music available on YouTube — including content labelled as “royalty-free” — is generally intended for personal or private listening only.

A YouTube account or YouTube Premium subscription does not grant public performance rights, and therefore does not authorise music playback in a commercial environment.

2. “Royalty-Free” Does Not Mean “Free for Business Use”

The term royalty-free typically means that no recurring royalties are charged per play

It does not automatically grant permission for public or commercial playback.
Playing music in a business venue is legally considered public performance, which requires proper authorisation from the rights holder(s).

3. Content Creators Cannot Grant Public Performance Rights to Stores

Even if a YouTube creator states that their music is “free to use”:

  • They often do not control public performance rights
  • They cannot override copyright or licensing law
  • Their statement does not protect a business from legal responsibility

Ultimately, the business owner remains liable.

4. Why Businesses Receive Warnings or Penalties

Compliance checks typically focus on two questions:

  • Is music being played in a public or commercial space?
  • Does the business hold valid permission or a licence?

If the answer to the second question is no, the business may be exposed to legal or financial risk — regardless of where the music was sourced.

Safer Music Options for Businesses

Business owners may consider:

  • Proper commercial music licences
  • Directly licensed music with clear written permission
  • Music created specifically for commercial use
  • Public-domain recordings (not just public-domain compositions)

Educational Purpose

This notice is published for educational and awareness purposes only.
It is not legal advice, but aims to help businesses better understand common misconceptions around music usage in commercial environments.

If you are a business owner, staying informed can help you avoid unnecessary risk and ensure compliance.