Music Licence for Businesses in Panama: The Basics
Which licence your venue needs to play music, who issues it and what the law says, in plain terms.
If you run a restaurant, a hotel or a shop in Panama, sooner or later the question comes up: do I have to pay for the music playing in my venue? The short answer is yes. This guide explains why and to whom, using Panama's rules rather than those of the United States or Spain.
What the law says
Law 64 of 2012 on Copyright and Related Rights gives the author the right to authorise public communication of a work, meaning making it available to the public by any means. That includes recorded music played in a commercial venue, and also a radio or TV left on in a place accessible to the public. A personal streaming subscription changes none of this: it covers private use only.
Who is who: SPAC, PRODUCE and PANAIE
| Body | Who it represents | Right it manages |
|---|---|---|
| SPAC (Sociedad Panameña de Autores y Compositores) | Authors and composers | Authors' right for public communication |
| PRODUCE (Sociedad Panameña de Productores Fonográficos) | Record producers (owners of the recordings) | Producers' related rights |
| PANAIE (Asociación Panameña de Artistas, Intérpretes y Ejecutantes) | Performers | Performers' related rights |
PRODUCE and PANAIE work in alliance, so a commercial venue usually deals with two windows: SPAC for the authors and PRODUCE for the recordings.
How to get it
- Have your venue details ready. Type of business and size; each body uses these to define what applies to you.
- Apply for the SPAC licence to publicly communicate the works it manages.
- Apply for the PRODUCE licence for the use of recordings; they publish their licensing process on their site.
- Keep the receipts with the rest of your business paperwork.
Where Radio Creator fits
The venue's licence and the source of the music are two different things. Even with the licences up to date, a personal Spotify or YouTube account is still not for commercial use, because its own terms limit it to personal use.
Radio Creator supplies music scheduled by time and by zone, built for commercial use. Each business arranges its own public communication licence with SPAC and PRODUCE, and we point you in the right direction. See the service at music for business in Panama.
Frequently asked questions
Is it mandatory to pay for the music played in my business in Panama?
Yes. Law 64 of 2012 treats music played in a venue open to the public as public communication, which requires authorisation from the rights holders.
Who do you pay for a music licence in Panama?
SPAC for the rights of authors and composers, and PRODUCE for the rights in the recordings. PRODUCE works in alliance with PANAIE, which represents performers.
If I pay for Spotify Premium, am I covered?
No. A Spotify subscription is for personal, private use and does not authorise public communication in a commercial venue.
Do radio and TV in the venue count too?
Yes. Picking up a radio or TV broadcast in a place accessible to the public is also an act of public communication.
This guide is for information only and is not legal advice. Requirements can change: always confirm with SPAC and PRODUCE what applies to your venue.
Music built for commercial use
Keep the personal account for home. We supply music programmed for your business and point you in the right direction on the legal side.
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