The average person spends almost 27 hours each week listening to their favorite songs. As individuals, we can listen to music as much as we’d like. As business owners, 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 launch them without permission, you are breaking copyright law 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, 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.
Here’s what you need to know about appropriate licenses and the consequences of avoiding or ignoring these laws.
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.
- 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 a license.
- Restaurants: Music floating over loudspeakers could help people to enjoy their meals. You need a license to play those songs.
- Retail establishments: Whether you sell food, clothing, or office supplies, your music could help people linger. You need a license for playing music in a retail store.
- Venues with live bands: If your performers cover songs created by other people, you need a license for these tunes. Those rules apply if the band is playing for a private party or wedding.
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.
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What Licenses Do Businesses Need to Play Music in Public?
Each time you play songs publicly, you must honor the copyright. Typically, those protections are managed by performing rights organizations (PROs) such as BMI and ASCAP.
A PRO blanket license gives a business the legal right to play all the songs in the catalog, but there are important exceptions.
Two different 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.
But a standard company like BMI charges about $30 monthly (on the low end). 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.
How to Get a PRO License
Before you start playing music in public, you’ll need a license from the copyright holder. Often, that means negotiating directly with a PRO. Here’s what you need to know to handle this process.
Take the following steps in this order:
- Find the right PRO. As we’ve mentioned, PROs work with a specific lineup of artists. If you have a particular song or musician in mind, ensure you’re working with the right PRO. If you can find an official video from the artist on YouTube, you may see the PRO’s name in the description. You can also look for a CD or record, as the liner notes would list the PRO.
- Identify your needs. PROs create very specific contracts that detail how you can use music. For example, some allow businesses to play recorded music, while others are designed for live music. Ensure you know just how you’ll play music, so you’ll get the right license.
- Measure your space. Most PROs will ask questions about the size of your facility, how many people will hear the songs, and more. Take measurements before you make contact, so you can answer these questions properly.
- Contact the PRO. Several of them exist, including the following:some text
- Answer questions. Once you connect with the PRO, you’ll be asked questions about your music needs, your facility, and your potential audience. The PRO will give you a potential price.
- Negotiate. Ask the PRO for help in keeping your cost down. For example, if you’re only playing music in one room within your facility, maybe your cost could be reduced as a result.
When Can You Play Music in Public Without a License?
In most cases, companies must have a license to play music in public. But there are a few very rare exceptions.
Those exceptions include the following:
- Public domain: Some very old recordings are no longer protected by copyright law. If you choose songs from this very limited list, you won’t need a license. And remember that new recordings of old songs are very likely protected by copyright.
- Music for teaching: According to BMI, you will not need a license if you work for a nonprofit institution, and you are teaching the course in a face-to-face format. If you are using any kind of distance learning, or you work for a for-profit institution, you will absolutely need a license.
- Music for nonprofit events: If you work for a nonprofit institution, and you'd like to use music during a big event, you may be able to play any kind of music you want to play without a license. But the rules are very strict.
According to BMI, you cannot charge admission to the event. You also cannot use the event for any kind of commercial advantage or private financial gain. If the person who holds the copyright finds out about the event and sends you a letter of objection, you cannot play that person's music. - Radio: If your business is smaller than 2,000 square feet and uses just a few speakers, you can play radio stations. But you can’t omit the commercials in this plan.
Know that all these examples come with very strict rules and regulations. If you get even one detail wrong, you could be fined.
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. The smallest fee is $750, and the largest is $150,000.
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.
- Choose songs in the public domain. Songs or musical work published in 1927 or earlier is in the public domain and unprotected by copyright law. Use the Public Domain Information Project to find lists of music in the public domain, and play them as you see fit. Know that most of them are old, and the recordings may be grainy or poor.
- Consider royalty-free music. Royalty-free music doesn't necessarily mean it's free. It simply means you don't have to continually pay royalties. Many artists charge a one-time fee for the right to play these songs in public. Use the Free Music Archive to find songs within this category. Pay attention to the songs carefully, as they may not be equal in quality.
- Play music you wrote. Create your own songs and play them yourself, and you can ignore PROs. It takes time to write and record these songs, and if you don’t have very many, your customers may hear the same tunes repeatedly.
- Play music that isn’t copywritten or is under a Creative Commons license. Some artists waive their copyright rights and publish their work on websites with disclaimers about public performances. Some artists also publish music under a Creative Commons CC BY or CC BY-SA license. These licenses allow people to distribute, remix, adapt, and build on music, as long as the creator is named. Use sites like ccMixter and Jamendo to find songs with these types of licenses.
Note that none of these options are limitless. Most of them come with severe restrictions about what you can and cannot play while remaining inside the 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 Spotify or Apple Music in my business?
Not from your personal account. In order 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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