Yes, in certain situations, you can get an exception from music licensing.

The rights of songwriters, musicians, and publishers are enshrined in U.S. copyright laws. Per those laws, anyone who doesn’t own the copyright to a song must have permission before playing it in a public space (like a restaurant). Typically, getting permission means paying a fee. 

Imagine you own an Italian restaurant and want to play That’s Amore by Dean Martin for your patrons. To do that, you must get a license and pay a fee. If you don’t, you could get sued by the copyright holder and be forced to pay a fine.

If you're looking for a way out of a licensing agreement so you can play the music you want without paying , we understand. The good news is that some exemptions do exist for certain businesses. We’ll explain how to avoid music licensing fees in this article.

Music Licensing Exemptions for Businesses

When it comes to exemptions from the licensing requirements of BMI, ASCAP, and SESAC, business owners need to understand that these exemptions are not one-size-fits-all.

Eating and Drinking Establishments

Small-scale food and beverage establishments, like cafes and bars, have a specific set of criteria for exemption, including:

• Size Matters: Your establishment must be 3,750 square feet or smaller.
• Radio limitations: Playing conventional radio is allowed under certain conditions which include:
  
  • No more than six loudspeakers in total.
  • A limit of four loudspeakers in any one room.
  • No mandatory cover charge for entry.
  • Avoid playing music over phone calls (e.g., when customers are on hold)

Retail Stores and Other Non-Food Establishments

Retail stores also qualify for exemptions, but the rules are slightly different than with restaurants or cafes. The rules include:

• Stores under 2,000 square feet are generally exempt.
• Stores 2,000 square feet or larger can still qualify if they follow the same rules as food and drink establishments for loudspeakers and TV use.

Music in the Public Domain

Owners of other types of businesses have one slight exemption to explore, and it involves music in the public domain. 

According to Stanford University, it's safest to define public domain music as music that was published prior to 1923.[1] There are some songs published between 1922 and 1964 that may be in the public domain, but that involves research with the U.S. Copyright Office. Some copyright holders have issued renewals for those works.

Copyright laws are strong, but they’re not intended to last forever. When all of the possible copyright protections have expired (which typically means 70 years after the musician has died), the songs can be used without asking permission or paying fees.

It's important to note that songs move into the public domain based on the date they are published. Remakes don't count. So you won't be able to select a song by title. You'll need to watch the publish date carefully. For example, "Mary Had a Little Lamb" might be in the public domain. But if Adele were to record a version of this song, it would not be part of the public domain. If you go this route, you will need to do your homework.

The Public Domain Information Project provides a large (and free) list of music within the public domain. Sound recordings are available on the site, and they’re easy to download.[2]

Alternative Music Options 

If you’re hoping for even more ways to avoid music licensing fees, two other important pathways exist. 

Royalty-Free Music

Technically, this isn’t a way to avoid music licensing fees. Songs that are royalty-free typically require one payment to download. After that, no ongoing payments are required. You can keep playing the song in accordance with your contract. 

Original Compositions

If you are an artist, you could write and record your own songs and play them in your business. Since you hold the copyright for the music you create, you can do whatever you want with it, including playing it for your paying customers.

Pandora CloudCover for Business Music Streaming

The final alternative involves a different type of connection. 

Pandora CloudCover simplifies background music streaming for businesses by offering a comprehensive and affordable solution. With pre-negotiated contracts with major PROs, we provide access to a vast library of licensed songs for a single flat fee. You won’t need to worry about researching which songs are allowed or dealing with complicated licensing rules — we handle it all for you.

​​Benefits of Choosing CloudCover Instead of Relying on Licensing Exemptions

• Guaranteed Compliance: Avoid legal risks by streaming fully licensed music, eliminating the guesswork about exemptions.
• Simple Setup: Skip the hassle of researching licensing laws—CloudCover handles all the details for you.
• Affordable Pricing: Pay one flat fee for access to a vast library of music instead of risking expensive fines for violations.
• Custom Playlists: Create curated music experiences tailored to your business and customer preferences.
• Hassle-Free Updates: Enjoy an up-to-date music library without worrying about licensing changes or restrictions.
• Professional Ambiance: Enhance your space with high-quality music designed to improve customer experiences.
• Peace of Mind: Focus on running your business without worrying about copyright laws or exemptions.
• Flexibility: Choose from a variety of genres and playlists to match your brand’s vibe and your customers’ tastes.
• Scalable Solution: CloudCover works for businesses of any size, from small shops to large retail chains.
• Efficient Support: Get help from a dedicated team that ensures you’re always compliant and satisfied.

Start streaming music tailored to your business without the hassle of traditional licensing. Contact us today to learn how Pandora CloudCover can elevate your space while saving you time and money.

Other Exemptions

Some exemptions don’t typically apply to traditional for-profit businesses. These include:

• Homestyle exemption: This exemption applies to establishments using music in a way similar to how an ordinary individual might use it at home. This means using consumer-grade equipment and not charging an entry fee to hear the music. The specifics can vary, so it's important to consult legal guidance to see if this exemption applies to your business.
• Educational institutions: Music used in a classroom setting for educational purposes can often be exempt. This includes schools, universities, and educational seminars where music is used as part of the teaching process.
• Government entities: Some government-run facilities, such as public parks or community centers, may be exempt or have different licensing requirements.
• Special events and charities: Occasionally, special events like charity fundraisers or community events might qualify for exemptions or reduced fees. It's important to check with the PROs directly in these cases.
• Religious services: Music played during religious services is typically exempt. However, this exemption does not always apply to music played during social gatherings or other events hosted by the religious organization.
• Fair use: In very limited circumstances, the use of music may fall under 'fair use'. However, this is a complex legal area and typically requires a legal opinion to determine applicability.

Again, it’s important to note that these exemptions don’t typically apply to standard businesses. Make sure to consult with a legal professional if you think any exemption might apply to your business.

Risks of Violating Copyright Laws

Songwriters, musicians, and publishers have rights that are enshrined in U.S. Copyright law. Per that law, the holders of the copyright are entitled to ask for help from the courts if their rights are violated. The potential fines are clearly outlined within the law. 

If someone infringes on copyright law, they can file a court case and ask for damages of not less than $750 and not more than $30,000 per violation, as the court considers just. The copyright holder could also ask a violator to pay the legal court fees associated with the case. 

In 2024, a restaurant in South Carolina was sued in accordance with this law. The facility hired a band to play live music, and that group played protected songs. The copyright holder sued the restaurant for damages between $750 and $30,000 (exactly as specified in the law). 

Do You Need a Music License? A Chart 

If you’re wondering how to avoid music licensing fees, this chart may be helpful. While your circumstances may vary, this information can help you understand the typical situations and circumstances in which a license isn’t necessary.

References

Our Role. BMI.

A Comprehensive Comparison of Performance Rights Organizations (PROs) in the U.S. (February 2018). Digital Music News.

Music Licensing for Restaurants. (December 2016). New Mexico Restaurant Association.

Welcome to the Public Domain. Stanford University Libraries.

The Music-Copyright Enforcers. (August 2010). The New York Times.

Playing Music in Your Restaurant? What You Need to Know About Licensing to Avoid a Lawsuit. (August 2016). Golden Gate Restaurant Association.

Avoid a Lawsuit. (August 2016). Golden Gate Restaurant Association.

Copyright Law of the United States. (December 2022). U.S. Copyright Office. 

Saltwater Cowboys, Owners Sued for Violating Music Copyright. (June 2024). Nexstar Media.