In the United States, playing music in a commercial space like a restaurant typically requires licensing to respect the rights of songwriters and publishers. This article explains when licenses are required, who issues them, what costs to expect, and practical steps to stay compliant while keeping music a welcoming part of the dining experience.
Why Licenses Matter
Public performance rights protect the creators of musical works. When a restaurant plays radio, streaming, TV, or a live performance, the public is being exposed to protected songs. Licensing ensures creators receive compensation and helps maintain a fair ecosystem for music use in commercial settings.
What Types Of Licenses Are Required
For most restaurants, three core licenses are relevant:
- Public Performance License (PPL) from performing rights organizations (PROs) such as ASCAP, BMI, or SESAC. This covers the right to publicly play musical compositions.
- Master Use License if playing recorded music from a specific recording. This is typically handled by the music service provider or a separate license from the recording copyright holder, depending on the source.
- Synchronization or Mechanical Licenses only apply if music is used in a visual format or reproduced in a new recording—rarely required for standard in-restaurant music.
Who Issues The Licenses
The main bodies are the ASCAP, BMI, and SESAC in the United States. These PROs issue blanket licenses that cover most publicly performed musical works registered with them. Some venues also obtain licenses from the SoundExchange for digital performances in certain venues, though this is less common for typical restaurant environments.
Costs And Compliance
Costs vary based on factors such as seating capacity, business type, hours of operation, and whether the music is live or pre-recorded. Typical ranges include:
- Blanket licenses for small to mid-size restaurants can run from a few hundred to a couple thousand dollars per year, depending on the PRO and venue specifics.
- Live music or DJ events may incur higher fees due to additional coverage and potential cross-licensing requirements.
- Some music-service platforms that supply background music for businesses bundle licenses or provide a compliant solution, potentially reducing administrative overhead.
Noncompliance risks include fines and back-payments if a venue is found playing copyrighted music without proper licenses. Keeping up to date with licenses helps avoid legal exposure and supports creators.
How To Obtain Licenses
Follow these practical steps to align with licensing requirements:
- Identify your music usage: in-restaurant background music, TV/music videos, live performances, or DJ sets.
- Determine the size and scope of the space, seating capacity, and typical hours of operation.
- Contact the major PROs (ASCAP, BMI, SESAC) to obtain blanket licenses. Some venues start with one PRO and add others if needed to cover all catalogues.
- Consider a music service provider that offers a comprehensive business-licensed music solution, which may include blanket licensing and technical integration.
- Maintain written records of licenses, terms, and renewal dates. Conduct periodic audits to ensure continued compliance.
Alternatives To Traditional Licenses
For venues seeking simplicity or cost savings, several options exist:
- Licensed Background Music Services: Providers offer curated playlists and contractually cover performance licenses, simplifying compliance.
- เกิด Live Music Strategically: Hosting private events with explicit licensing arrangements can be managed separately from daily operations.
- Use Royalty-Free Music: Some venues opt for royalty-free or pre-cleared music libraries, though this may limit repertoire and may require verification of rights for public performance.
- Negotiate With PROs: Some restaurants negotiate tiered plans based on size, hours, and location, potentially lowering costs with proper reporting.
Operational Tips For Ongoing Compliance
To maintain ongoing compliance, restaurants should:
- Review music usage quarterly and update licenses if the concept or capacity changes.
- Train staff on how music is sourced and logged, including any events with live performances.
- Keep documentation readily available for inspections or audits by licensing bodies.
- Audit third-party contractors ( DJs, live bands, or streaming services) to ensure their licenses align with venue needs.
Key Takeaways
Most restaurants will need a public performance license from one or more PROs to legally play music in a public space. Licenses are tailored to venue size, hours, and type of music usage, and costs vary accordingly. For simplicity and compliance, many operators leverage licensed background music services that bundle licensing and delivery, while still maintaining control over playlist choices. Staying informed and maintaining records helps prevent penalties and supports the broader music ecosystem.