The provision of the Copyright Act relating to the compulsory license system imposes restrictions on the rights of performing artists and phonogram producers. An audio recording may be exploited without the performer's or the phonogram producer's consent as prescribed in the Act, as long as they are compensated for the same.  The compensation is paid through an organization approved by the Ministry of Education (Gramex Ry). However, compensation can be paid only if the audio recording has been published commercially, and copies of it have been distributed or communicated to the public. Pursuant to the provisions relating to the compulsory license system, audio recordings may be:
- Presented to the public
- Communicated to the public, e.g. in an information network, unless this is related to on demand communication
- Retransmitted in a radio or television broadcast
For example, playing a CD as background music in a restaurant does not require permission from the performing artists or the phonogram producer, as long as they are compensated. It should be pointed out, though, that the provisions relating to the compulsory license system apply to the rights of performing artists and phonogram producers only. A recording that contains music may be subject to the rights of other copyright holders, such as composers, writers of lyrics, or arrangers. Permission to exploit their works must be obtained separately, for example from Teosto Ry. 
The consequence of the compulsory license system is that performers and phonogram producers have the exclusive right to make reproducing the performance and any recordings of the performance, on demand communication to the public, and distribution to the public subject to their permission.
Notes and References
 Copyright Act
 Harenko – Niiranen – Tarkela (2006) Tekijänoikeus: Kommentaari ja käsikirja. WSOYpro, Helsinki.