Sony Sues Kroger: Avoid a $150,000 Social Media Mistake

Key Takeaways

• Commercial entities cannot use popular music in social media ads or reels without a specific sync license, even if the song is trending.
• Statutory damages for willful copyright infringement can reach $150,000 per work, according to Copyright.gov.
• Using a personal Instagram account to promote a business doesn't bypass federal copyright laws.
• Small businesses should switch to 'Royalty-Free' or 'Commercial' libraries provided by platforms to stay compliant.

Sony Music just dragged Kroger into federal court. The music giant filed a massive lawsuit in early July, accusing the grocery chain of 'rampant' copyright infringement across its social media accounts. Sony claims Kroger used hits from artists like Mariah Carey and Adele in promotional posts without paying a dime for the commercial rights. You can read the full breakdown of the filing at Billboard.

This isn't just a corporate headache for a billion-dollar grocer. It's a loud, expensive warning for every plumbing company, local boutique, and solo contractor using 'trending audio' to sell products. If Sony is willing to go after a grocery chain for a TikTok reel, they won't hesitate to send a demand letter to a mid-sized landscaping firm in Ohio. Federal law makes no distinction between a Fortune 500 company and a 2-person business when it comes to intellectual property theft.

Why doesn't my 'business account' have the same music?

If you've ever switched your Instagram account from 'Personal' to 'Business,' you probably noticed half your favorite songs disappeared from the library. That isn't a glitch. Platforms like Meta and TikTok have negotiated licenses for personal use, but those agreements don't cover commercial activity. When you use a song to promote a sale, a service, or your brand, you're engaging in commercial use. Under the U.S. Copyright Act, this requires a 'synchronization license' (or sync license) directly from the publisher and the record label.

I recently talked to a digital marketing consultant who saw a client, a small boutique gym, receive a cease-and-desist letter for a 15-second clip of a Dua Lipa song used in a 'New Year, New You' promo. The gym thought that since the song was available in the app, it was fair game. It wasn't. They ended up paying a $4,000 settlement just to make the threat go away. That's a lot of gym memberships for one Instagram post.

Is fair use a real defense for your business?

Many owners believe that if they only use seven seconds of a song, or if they give 'credit to the artist' in the caption, they're protected by fair use. This is a myth that gets businesses sued. Fair use generally covers commentary and news (plus criticism) reporting. It rarely covers a 5-person print shop using a top-40 hit to show off their new t-shirt designs.

Large labels use automated software to scan social platforms for their catalogs. They don't care if you've 500 followers or 5 million. Once the software flags your video, the legal process starts. The Small Business Administration reminds owners that federal and state licenses aren't the only legal hurdles; intellectual property is a core part of business compliance. If you're using music to drive revenue, you're a commercial user, period.

How can you stay safe without a legal team?

Staying out of court doesn't mean your videos have to be silent. It just means you've to stop using the 'top hits' section of the audio library. Most platforms now provide a 'Commercial Music Library' specifically for businesses. These songs are pre-cleared for promotional use. They mightn't be the latest Billboard hit, but they won't cost you $150,000 in statutory damages either.

Another option is to use royalty-free subscription services like Epidemic Sound or Artlist. For about $15 to $30 a month, these services give you a license that covers your business across all social platforms. It's a cheap insurance policy against a massive record label. (Disclosure: we may earn a commission if you sign up through our links.)

1. Audit your current social media feeds and delete any promotional posts using unlicensed popular music immediately.
2. Verify that your Instagram and TikTok profiles are set to 'Business' to ensure you only see the commercial-safe music library.
3. Stop using 'trending' audio for posts that mention prices and specific (plus sales) services.
4. Invest in a dedicated commercial music subscription if you rely heavily on video marketing.
5. Consult with an intellectual property attorney if you receive a formal notice of infringement; don't ignore it.
6. Use original audio, like your own voice or environmental sounds from your business, which you own 100%.

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📋 Disclaimer

This article is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations change frequently, and the information presented may not reflect the most current legal developments. Always consult with a qualified professional (CPA, attorney, financial advisor) before making business decisions based on this content. MyBizNerd may receive compensation through affiliate links, but this never influences our recommendations.

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