The average person spends almost 27 hours each week listening to their favorite songs. When it comes to personal use, listening to music in public (like through headphones in a café or on the street) is fine, as long as it doesn’t disturb others or involve public broadcasting.
However, when it comes to your business, different rules apply.
Is it illegal to play music in your business? Not exactly. But songs you play in a restaurant or shop are considered public performances, and if you play them without permission, you may be subjecting yourself to copyright law violations and could be subject to fines.
A public performance occurs when you play music in a public place with audience members that extend beyond family members and friends. In order to do this legally (and comply with laws regarding the public performance of music), one option is to obtain a license from a performing rights organization (PRO) — a company that collects royalties on behalf of music publishers and songwriters. A more affordable option for background music is to go with a music for business streaming solution like Pandora CloudCover.
Key Information About Playing Music in Public
- A public performance is implicated when playing songs for groups of unrelated people (such as people inside a restaurant).
- A song’s copyright holder has rights to compensation when their music is publicly performed.
- Without a public performance license, each song you play could be subject to fines.
- Pandora CloudCover provides properly licensed songs for play as background music for patrons.
Playing Music in Public: Terms to Know
Before we dig into how to get a license and how much it costs, let’s define common terms used in discussions about this topic.
Public Performance
A public performance involves a song playing for a group of unrelated people. For example, playing music for your family during Thanksgiving dinner may not require a license. However, playing music in a restaurant for patrons eating a meal will require a license.
Q: Is it legal to play music out loud in public?
A: A business establishment is required to play music properly licensed for background music. Each song you play without a proper license could subject you to lawsuits and fines.
Copyright Law
Rules contained in Title 17 of the United States Code outline the specific rights of musicians, publishers, and others who create protected works.
Copyright
Copyright protects original works, such as songs, music, plays, and movies.
Copyright Owner
Anyone who creates an original work (like a song) is the author and copyright owner.
Copyright User
Anyone who uses a protected work (like playing a song) is a copyright user.
When Do You Need a License to Play Music in Public?
U.S. copyright law protects almost every aspect of music, including composers, performers, and producers. Each time you play a song in public for patrons, you may owe these creators compensation.
Common businesses that require licenses for music include the following:
- Bars: You might play songs to keep patrons drinking and enjoying their time. Whether the songs come from a playlist you curate or a jukebox you fill with options, you need proper licensing.
- Restaurants: Music floating over loudspeakers could help people to enjoy their meals. You needproper licensing to play those songs.
- Retail establishments: Whether you sell food, clothing, or office supplies, your music could help people linger. You need proper licensing to play music in a retail store.
- Venues with live bands: If your performers cover songs created by other people, you need proper licensing to publicly perform those songs. Those rules apply even if the band is playing for a private party or wedding.
Q: Doesn’t my event/business permit covermy need to play music in public?
A: Permits aren’tthe same as licenses. While you might need a permit to hold a big event (like afestival) from your city, that permit likely does not include the licenses youneed from music rightsholders to play music without being subject to lawsuitsand fines.
Playing music legally can help you avoid fines. It’s also the ethical thing to do. Just as you wouldn’t want people stealing your items, you shouldn’t steal someone else’s songs.
What Licenses Do Businesses Need to Play Music in Public?
US copyright law addresses the public performance of music as an exclusive right of the copyright holder. Typically, those protections are managed by performing rights organizations (PROs) such asBMI and ASCAP.
A PRO blanket license may provide a business legal right (with a license) to play all the songs in that PRO's catalog, but there are important exceptions.
Multiple PROs could protect a song that’s perfect for your brand. The songwriter may be contracted with one, and another might cover the recording. If you contract with just one, you could be fined by the other.
Understanding the different PROs isn’t easy, as few list all their fees in a straightforward manner. Most set charges by the size of the facility, the songs you want to play, and more.
A single PRO's fee can be about $30 or more per month. If you connect with several PROs for full protection, you could spend hundreds monthly. And the time you spend on managing your contracts could be better spent elsewhere.
Skip the hassle and expense of PRO contracts by choosing Pandora CloudCover, an easy and affordable streaming solution designed specifically for businesses. Enjoy licensed background music that enhances your space, saves you time, and keeps your budget in check.
What Are the Penalties for Playing Unlicensed Music as a Business?
It’s difficult to manage copyright requirements, and people may be tempted to skip the hassle and just play the music they want. But fines for playing unlicensed music can be steep.
Copyright infringement fines are set by U.S. law. Even the smallest fees can start at $750, with statutory damage fees currently at $150,000 per infringement, per song.
Examples of Copyright Infringement
That happened to a company in Charlotte, according to The Charlotte Observer. The owner of the business thought he was protected when he played songs using his personal Spotify and Pandora accounts, but he was hit with a lawsuit for $150,000.
A restaurant in Charleston was sued by ASCAP in June of 2024 for copyright infringement after holding a live performance of a handful of songs. In the lawsuit, the publisher asked for fines ranging from $750 to $30,000, plus attorneys’ fees. This case is still pending.
In another case from 2024, a restaurant in Chattanooga was sued for playing music without a license. The restaurant previously had a license but stopped paying fees in 2019. In the lawsuit, the copyright holder cited three songs that were played without a license. The case asked for up to $30,000 in fines. The case is still pending.
Alternatives to Paying PRO Licensing Fees
In 2022 alone, more than 13,000 companies filed for business bankruptcy. Few owners jump at the opportunity to increase their operating costs and hassles. If you’re adamantly opposed to working with PROs, you do have options.
Alternatives to working with PROs include the following:
Try the Radio
If you have a small establishment, few speakers, and a tolerance for DJs and commercials, this could be a good option, but make sure to check the rules.
There may be alternate options like royalty-free music or in some cases, the radio, but none of these options are ideal fora business looking for a wide variety of music. Most alternate options come with severe restrictions about what you can and cannot play while remaining compliant with applicable law.
Explore Pandora CloudCover’s Music Licensing Solutions for Businesses
Pandora CloudCover offers a PRO alternative for playing background music. With one small monthly fee, you’ll access a catalog of songs you can play in your business without worrying about breaking copyright laws.
Pandora CloudCover pulls songs into playlists, so you can start the tunes playing very quickly. Create your own sounds by mixing several playlists and omit songs you never want to hear again.
A robust dashboard lets you set up schedules for your songs. Play upbeat tunes in the morning, and slow things down at night. Ensure that all your locations are playing the songs you’ve authorized and make changes from this same dashboard.
Find out more about our music streaming solutions for businesses. Get a FREE 14-day trial, or reach out to chat. Terms and conditions apply.
Frequently Asked Questions About Playing Music Without a License
These are some of the questions we hear most about playing music without a license:
Am I allowed to play music in my business?
Playing music in your business is considered a public performance, and you need a license to do this legally. You can get multiple licenses from the major performing rights organizations, or you can use a service like Pandora CloudCover.
What happens if I play music in public without a license?
If you are caught playing music in your business without the proper license, you can face steep fines and even criminal charges.
What music can I play without a license?
You can play music in the public domain without a license as well as anything you write yourself. If you have a small establishment, you may be able to play the radio for free, but the specifics will depend on the size of your business and how many speakers you have.
Can I play my Spotify or Apple Music personal app in my business?
Not from your personal account. To legally play music in your business, you need a commercial streaming service, like what we offer at Pandora CloudCover.
References
Weekly Time Spent Listening to Music in the United States from 2015 to 2019. (December 2021). Statista.
Use of Music. Department of Revenue, Washington State.
C in a Circle: Exceptions to the Rule: When Unlicensed Uses of a Copyright Are Not Infringements. (June 2006). BMI.
17 U.S. Code Chapter 5: Copyright Infringement and Remedies. Cornell Law School.
Popular Uptown Bar in Charlotte Sued by Major Music Publishers. (February 2018). The Charlotte Observer.
Annual Number of Business Bankruptcy Cases Filed in the United States from 2000 to 2022. (February 2023). Statista.
List of Public Domain Music. PD Info.
Copyright Law of the United States (Title 17). (December 2022). U.S. Copyright Office.
What is Copyright? U.S. Copyright Office.
Saltwater Cowboys, Owners Sued for Violating Music Copyright. (June 2024). News 2.
Chattanooga’s Southside Social Sued by ASCAP for Alleged Unlicensed Music Play. (July 2024). News Channel 9.
About CC Licenses. Creative Commons.
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