Restaurant music licensing: Everything you need to know
Which licenses a restaurant needs, what they cost and the simplest way to play music legally.
Music is an essential ingredient for the perfect dining atmosphere, but restaurants need proper licensing in order to play music, whether it's for customers or in the staff room. In the United States, licenses come from performing rights organizations (like ASCAP, BMI, GMR or SESAC). License costs can run from a few hundred to a few thousand dollars per year, but a licensed business music service can help bring those costs down.
In this article, we'll explore the essentials of music licensing for restaurants, why compliance is important and how business-focused music streaming services like Soundtrack simplify the process by bundling the necessary rights into one affordable package.
There are plenty of examples of the music industry biting back at restaurants for missing licenses. Meadowlark Bar in Colorado faced a US$27,000 lawsuit for failing to renew its music licenses, and the Blue Moose Bar & Grill in Kansas was hit with costly legal action over use of just two songs — with a permanent ban on using music from the related licensing organizations.
These cases highlight a harsh reality: whether you're a small, independent eatery or part of a larger chain, you can be held accountable for copyright infringement if you fail to comply with music licensing laws.
Do restaurants need a license to play music?
Yes, playing music in a restaurant counts as a public performance that legally requires a license. Music is integral to the restaurant dining experience: it sets the tone, creates an atmosphere and softens the clinking of silver or glasses. But playing overhead and background music still requires proper licensing in any commercial setting.
Globally, there are regulations protecting artists and music creators from copyright infringement. For example, violations of American copyright regulations can incur hefty fines ranging from US$750 to US$30,000 per infraction. However, penalties for "willful" infringement can climb to US$150,000.
Using these platforms in a restaurant without the proper music licenses may constitute copyright infringement and can result in significant legal and financial consequences.
To avoid risks, a service like Soundtrack will provide hassle-free, fully compliant music streaming for any commercial setting — allowing you to save time, money and play the music you want in your restaurant with peace of mind.
What music licenses does a restaurant need?
Businesses generally need licenses from performing rights organizations (PROs) to play music in their establishment. A public performance license allows you to play a song in a public environment, whether it's played from a jukebox, over a speaker system, from a TV or even through a karaoke machine. Usually, public performance rights are obtained from the PRO or PROs representing the licenses.
The Copyright Act of 1976 remains the primary basis of American copyright law, protecting original works of authorship including musical, dramatic, literary and other artistic works that fall under the umbrella of intellectual property.
There are four PROs in the United States that manage, collect, and distribute public performance royalties:
The Canadian music licensing landscape differs from that of the United States. In Canada, the performing rights societies are SOCAN (which covers songwriters and publishers) and Re:Sound (which covers recording artists and record labels). Entandem sells public performance licenses to Canadian restaurants on behalf of both.
Please review these links for music licensing in the United States and music licensing around the world.
A music service like Soundtrack can handle the complexities of music licensing to help ensure your restaurant is compliant and protected from lawsuits.
Most often, subscribing to a streaming music service for business is less expensive than securing licenses directly from each individual PRO.
What are the two copyrights in every song?
In US music licensing laws, every recording comprises two copyrighted works: the underlying musical composition (musical work) and the actual recording (sound recording).
The songwriter (or the writer's music publisher) usually owns the copyright for the musical work. The recording artist (or the artist's record label) usually owns the copyright for the sound recording.
Proper licensing ensures that these creators and music rights holders are properly compensated for their work, just as you would pay staff at a restaurant.
Do I need a separate license to play live music in my restaurant?
Yes, if the performers play any copyrighted music. If a restaurant hosts live performances (such as bands or DJs who play copyrighted music like covers), the restaurant owner needs a separate or additional license for live music from the PROs.
Restaurants and bars are liable if musicians play a cover song that you haven't paid a live music license to use.
If a live band or musician only plays original music, a license may not be necessary.
Can a restaurant play Spotify or other personal streaming apps?
No, playing your personal Spotify account isn't allowed in your restaurant.
Many restaurant owners mistakenly believe that playing music from personal streaming accounts or digital libraries is allowed without a license. However, consumer services like Spotify, YouTube, SiriusXM, Amazon Music, Pandora, Apple Music and Tidal are strictly intended for non-commercial, personal use. In fact, their terms of service prohibit public or business-related usage.
Is one PRO license enough for a restaurant?
Not usually. A lot of pop music today involves more than one songwriter, and not all songwriters are represented by the same PRO. PROs often don't mention that you may need licenses from ASCAP, BMI, GMR and SESAC at the same time. There have been many instances where a restaurant received demand letters from one PRO even though they had a license with another PRO.
Obtaining a blanket license from one PRO (such as ASCAP) gives you permission to play music from numerous artists and copyright holders under a single legal agreement. However, most popular songs are only partially licensed to a single PRO, so you'll be limited to playing music only from songwriters in their catalog.
For example, if you want to play music by Gwen Stefani, a blanket license from GMR would at least partially cover many of her hits. GMR represents 100% of the writers of "Hollaback Girl." You could play that song with a blanket license from GMR only and have no reason to worry about a lawsuit.
But if you want to play Gwen Stefani's other songs, you'll need additional licenses. GMR represents only 50% of the writers of "What Ya Waiting For." That song was co-written by a writer represented by BMI. This practice is widespread in the music industry.
Most American restaurants need to pay ASCAP and BMI (and other PROs) for licenses because these organizations represent different catalogs of artists and songwriters. A single license from one PRO only covers the songs and artists they represent.
For any given artist, it's highly unlikely that a blanket license from one PRO would cover all of their hits, because there are almost certainly co-writers that belong to another PRO. If partial rights are owned by ASCAP, for example, you would need a license from them as well to be in full compliance.
Here are the databases for major PROs to verify song coverage:
Another option that will help you save money, eliminate risk, and ensure you're only playing fully licensed tracks is to sign up for a service like Soundtrack that offers music streaming for restaurants.
Soundtrack bundles all of the required licenses together to simplify the buying process, so instead of dealing with multiple organizations, you deal with one.
Are small restaurants exempt from music licensing?
There are exceptions in the Copyright Act that allow this, as long as the restaurant or business doesn’t charge customers to hear the music and meets certain conditions:
Under 3,750 square feet in size (excluding parking)
No more than four TVs in the restaurant and no more than one per room
None of the TVs can be larger than 55 inches
No more than six speakers and no more than four per room or in any outdoor space like a beer garden or patio
Music can't be transmitted beyond the restaurant's property
Restaurants larger than 3,750 square feet but don't meet the equipment limits must secure a license to play music. Streaming, CDs and playlists are never exempt.
How much does a restaurant music license cost?
The cost of a restaurant music license can range from a few hundred to several thousand dollars per year, depending on the specific circumstances of the establishment. License fees from a single PRO typically range around US$1,400 to US$1,900 when acquired directly.
These fees are typically based on factors like:
Your type of business
Size and/or capacity of the venue
Whether the music is live or recorded
Frequency of the use of music
Whether there is a cover charge
While playing a carefully curated playlist is one of the most cost-effective ways to differentiate your restaurant, music licenses are a necessary expense if you play music for guests.
Restaurants can contact each PRO directly for an exact quote, or let Soundtrack handle all the licenses you need in one place. Here's a full breakdown of Soundtrack's plans and pricing. With Soundtrack, a restaurant or coffee shop larger than 2,500 square feet can access, customize and play from a licensed music catalog of over 125 million songs for just US$420 to US$582 per year.
What happens if a restaurant plays music without a license?
PROs may send demand letters and can sue for statutory damages per song.
Although music licensing fees may seem like an unnecessary additional cost for restaurant owners, non-compliance and playing unlicensed music poses a significant financial risk. Refusing to pay a licensing fee or ignoring communication from PROs can land you on the losing side of a fine or lawsuit, and the costs could shutter a business.
One restaurant owner in the American city of Raleigh was ordered to pay more than US$40,000 in fines and legal fees to BMI for illegally playing music in their establishment. The restaurant folded shortly thereafter.
ASCAP warns small businesses that ignore the copyrights of its member artists in frank language that "several venues that could have paid ASCAP a very reasonable and affordable license fee ended up paying far more in damages in accordance with the law."
PROs have full confidence in the legal system when it comes to their ability to collect licensing fees on behalf of their members, so it's best to avoid licensing problems in the first place.
How does Soundtrack cover restaurant music licensing?
A Soundtrack subscription includes the public performance licenses necessary to play music in a restaurant in the US and Canada, so you deal with one provider instead of multiple PROs.
Creating the perfect backdrop for your guests' dining experience is about more than just serving mouth-watering dishes. It's about crafting an atmosphere that transports them away from their everyday troubles and into a universe of culinary delights.
Music is pivotal in this transformation, but you must ensure what you're playing is compliant and pay music creators and copyright owners. Having only an ASCAP license or BMI license is insufficient, unless you're carefully tracking and only playing music covered by each specific PRO.
Soundtrack offers a comprehensive solution for businesses to use music in their restaurants legally. Monthly and yearly streaming subscriptions cover both sound recording and PRO licensing fees in the United States and Canada, including tracking reporting, and some incredibly helpful made-for-business tools.
This means you don't need to worry about the complexities of licensing music. Instead, focus on what you do best — serving up delicious food and exceptional service — and let Soundtrack provide the perfect music.
Discover the benefits of Soundtrack for your restaurant today!
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Common questions about restaurant music licensing
If you have a question that we don't answer here, please contact us.
Can I avoid paying PROs by licensing music directly with the songwriters and publishers?
It is possible to bypass PROs and license music directly from the copyright holders. Some businesses do this to support local unsigned artists. However, this can be a tricky and time-consuming process and you should speak to a music attorney before attempting this.
Can I put a radio in the kitchen that's just for the workers?
This can be a legally protected exemption, as long as the music doesn't bleed into any dining space or area of the restaurant where customers may hear it.
I run a small business. How would they catch me and why would they care?
Even small, family-owned restaurants are not immune to the risks of publicly playing copyrighted music without the appropriate licenses. Many restaurant owners incorrectly assume copyright holders would only pursue legal action against large or high-profile restaurants that are non-compliant with copyright law.
However, there are plenty of examples of smaller restaurants and bars that have become the target of lawsuits for breach of music licensing laws, and PROs have ways of identifying businesses that are noncompliant.
ASCAP regularly publishes a list of venues fined for not paying songwriters in their businesses.
In another example, BMI sent music researchers to Ottobar to document songs the Baltimore bar was playing without the necessary music licenses. The judge ultimately ordered Ottobar to pay BMI US$18,000. Similarly, Pals Watering Hole in Georgia had to pay US$17,200 to BMI, US$4,300 each for four songs they were caught playing without proper coverage.
What music can a restaurant play without a license?
Restaurants that don't want to pay for a license have three options: play live original music (only if the song isn't part of a PRO's catalog), public domain music (although many recordings of public domain compositions are part of a PRO's catalog) or royalty-free music.
Do the same licensing rules apply to bars and cafés?
Yes, bars and cafés need proper licensing in order to play music for customers and staff. Music played in any other setting besides your own personal enjoyment requires a public performance license. These licenses are available directly from performing rights organizations or through business music streaming services like Soundtrack that include them in their plan.
