Radio stations normally hold an MCPS licence which permits the dubbing (copying) of *edit changed or to of * copyright music to a computer based system.
What do the PRS and MCPS Licences cover?
The PRS licence collects licence fees for the public performance and broadcast of musical works. The MCPS collects and distributes 'mechanical' royalties generated from the recording of music onto many different formats. This includes the storage of music on a hard disk or server for direct to air broadcasts.
What an MCPS Radio Licence typically covers:
A mechanical licence is required for the right to record MCPS members’ repertoire into:
Server or other hard-disk storage for subsequent direct-to-air broadcast
Non-programme material, but excluding station idents
Programmes produced by the radio station for broadcast on its own station
Broadcast of production music sound recordings
However, advertisements are excluded from the mechanical licence and must be cleared individually. Use of commercial music in a sponsored item is excluded, where a reasonable person would associate the music with the sponsor. Association can be deemed to exist, for example, where there is a small or no gap between a commercial work and reference to the sponsor.
Radio licensing FAQs
Radio Broadcasting
With regard to streaming (free software available for this), provided the correct licence is held, stick to streaming within the school buildings to avoid reporting tasks. Reporting can be quite time consuming even when the task is completed within the radio software (which could also incur additional outlay on the software itself).
Copyright free music is perhaps an ambiguous term, I prefer royalty free. However this can attract royalties upfront (rather than PRS/PPL) where a premium is paid for the use of music.
Podcast free music, where an unsigned artist gives permission to use their music without charge can be found. However should they sign to a record label they may withdraw its use without notice.
Podcast licence of commercially made music is available but currently restricts its use by only allowing the first and last few seconds of a music track to be used.
The advice of a long established internet radio station is to simple pay the relevant licences whatever type of music you use. It saves all the worries and troubles that could arise by the misuse of copyrighted material.
My contact details can be found here if you would like more advice.
http://homepage.ntlworld.com/tony33hill/radio.htm