What is music licensing?
The short answer to what is music licensing: music licensing is getting permission from the people who own a piece of music to use it in a specific way, for a specific time and place, usually for a fee. The permission is the music license: a contract that spells out what you can do with the music (put it in an ad, play it in a store, press it on a record), where, for how long and for how much.
The reason it gets complicated is that almost every recorded song carries two copyrights:
- The composition: the song as written, its melody and lyrics. It's owned by the songwriters and usually controlled by their music publishers.
- The sound recording (the master): that specific recorded performance. It's usually owned by a record label, or by the artist if they're independent.
Different uses touch different rights in each copyright, and different organizations grant them. That's why there isn't one "music license" but several types of music licensing, and why a single ad can need three or four signatures.
The main types of music licensing
Here are the music licensing types you'll run into, who grants each, and when you need it.
Sync license
A synchronization (sync) license lets you put a composition in timed relation to picture: a commercial, film, TV show, trailer, game, social video or corporate film. It's granted by the publisher or publishers of the song. If several writers share the song, every publisher with a share has to agree.
When you need it: any time music is used with video. If you're using an existing recording, you need a master use license too.
Master use license
A master use license lets you use a specific recording. It's granted by whoever owns the master, typically the record label. Sync and master are negotiated separately, often on MFN (most favored nations) terms, which usually means the higher of the two quotes sets both fees.
When you need it: whenever you use the original recording with picture. If you commission a new recording of the song (a re-record or cover), you don't need the original master, only the sync license from the publishers. Our article on needle drops walks through how this plays out on a real song.
Mechanical license
A mechanical license covers reproducing and distributing a composition in audio-only form: pressing CDs or vinyl, selling downloads, or streaming. In the US, mechanicals for covers are available under a compulsory license at statutory rates, so a publisher can't refuse a straight audio cover of a released song. Since January 1, 2021, digital services like streaming platforms have been able to get a blanket mechanical license administered by The Mechanical Licensing Collective (The MLC), set up under the Music Modernization Act. Other mechanical licenses are issued by publishers directly or through agents like the Harry Fox Agency.
When you need it: if you release audio-only music, such as a cover on a soundtrack album or a brand-released single. Mechanicals don't cover use with picture; that's sync.
Public performance license
A public performance license covers playing a composition in public or transmitting it: on TV and radio, in streams, in stores, restaurants, venues and at events. In the US these are granted mostly through performing rights organizations (PROs): ASCAP, BMI, SESAC and GMR. PROs sell blanket licenses to broadcasters, platforms and venues, then pay writers and publishers using broadcast logs and cue sheets.
There's a separate track for sound recordings. In the US, digital performances of recordings on non-interactive services like satellite and internet radio are licensed under a statutory license, with royalties collected by SoundExchange.
When you need it: usually it's the broadcaster, platform or venue that holds the PRO license, not the advertiser or producer. Your job is to file an accurate cue sheet so the writers get paid. A brand that plays music in its own stores or at its own events does need performance licenses for that.
Print license
A print license covers reproducing the written music or lyrics: sheet music, songbooks, lyrics printed on packaging, merchandise or on screen. It's granted by the publisher.
When you need it: if lyrics appear as text in an ad, on a product or on screen as a design element, or if you're printing notation. On-screen lyrics in a video are often handled inside the sync license, but they need to be named in it.
Production music licenses: needle drop, blanket and buyout
Production music (also called library music) is written and recorded for licensing, and the library typically controls both the composition and the master. That means one party can grant sync and master together, often called one-stop licensing. Libraries price it in a few ways:
- Needle drop (per use): a license for one track in one production. Each additional use is licensed separately. See what is a needle drop.
- Blanket: one fee covering unlimited use of a library's catalog within set limits, such as a term, a series or a channel. Common for networks and high-volume producers.
- Buyout: a one-time payment for broad, ongoing use of a track or collection, under the terms the license sets.
You'll also see royalty-free in this space. It describes a pricing model, not a lack of copyright: you pay once and use the music within the license terms without per-use fees. The music is still owned, and the license still sets the limits. For broadcast and paid media, most brands and agencies need a license written for their exact use, with someone standing behind the rights. In The Groove Music doesn't sell royalty-free or stock music; every track we license is scoped to the project's media, term and territory.
What licenses a typical project needs
- A TV or online commercial with a popular song: sync from every publisher, master use from the label. The networks and platforms handle performance licensing; you file a cue sheet.
- A commercial with a re-recorded version of a popular song: sync from the publishers, plus whatever agreement covers the new recording you commissioned.
- A commercial with custom music: an agreement with the composer or agency that sets ownership or license terms, media, term and territory. Our custom music work is quoted this way.
- A film or series using catalog music: sync and master, often one-stop from the catalog, plus a cue sheet for each episode or cut.
- A brand releasing a song or soundtrack: mechanical licenses for any compositions the brand doesn't own, plus distribution agreements.
- Music playing in your stores or at your events: public performance licenses from the PROs, or a background music provider that includes them.
For commercials specifically, we cover the details in licensing music for commercials.
What shapes the price of a music license
Whatever the license type, the same questions set the fee: what the music is, how it's used (background or featured, full song or a few seconds), the media (broadcast, online, paid social, cinema), the term, the territory, and whether you want exclusivity. A famous song in a national campaign sits at one end of the range and a catalog track in a regional digital spot sits at the other. We break this down in what it costs to license a song.
How licensing music works with ITGM
We handle music licensing end to end for brands, agencies, networks and film teams: finding the rights holders, negotiating sync and master, writing the licenses to your media, term and territory, delivering the files and keeping the cue sheets straight. When a song is out of reach, we'll offer alternatives from our catalog of about 44,000 tracks or write something original.
That's the work behind projects like AMEX Platinum, Amtrak's Be Somewhere and Nestlé Toll House Share Love, where we provided music supervision and licensing.
Frequently asked questions
What is music licensing in simple terms?
Music licensing is getting permission from the owners of a song to use it in a specific way, usually for a fee. Because most recordings have two copyrights, the composition and the recording, you often need permission from both a publisher and a label.
What are the main types of music licenses?
The main types are sync (music with picture), master use (a specific recording), mechanical (audio-only reproduction and streaming), public performance (playing music publicly or on air) and print (sheet music and lyrics). Production music adds pricing models like needle drop, blanket and buyout licenses.
Who grants a sync license?
The music publisher or publishers that control the composition grant the sync license. If the song has several writers with different publishers, each one has to approve its share. The recording is licensed separately by its owner, usually a record label.
Do I need a PRO license to use music in an ad?
Usually not directly. TV networks, radio stations and streaming platforms hold blanket licenses from PROs like ASCAP and BMI, which cover the public performance of the music they air. Advertisers and producers need sync and master licenses and should file accurate cue sheets.
Is royalty-free music the same as copyright-free?
No. Royalty-free means you pay once instead of paying per use, but the music is still copyrighted and the license still sets what you can do with it. Always read the terms for media, term and territory before using it in paid advertising.