Almost every restaurant or bar that plays music needs licenses from the performing rights organizations (PROs) that represent it. Music elevates the dining experience, and studies consistently show it increases the time and money customers spend, but playing it publicly comes with a legal obligation that many business owners overlook.
Under U.S. copyright law, any business that plays music in a public setting must obtain a license from the music’s rights holders, whether it streams music or hires live entertainment. Songwriters have the legal right to control how their work is used publicly and to receive royalties when it is. Those royalties are not just compensation; they are how songwriters sustain their craft.
These licenses are obtained through PROs, which collect and distribute royalties on behalf of the songwriters they represent.
As an NMRA member, you have access to discounted music licensing through three PROs: ALLTRACK, BMI, and SESAC. And if you play music in your restaurant or bar, you most likely need a license from all three.
Read on to learn what you need, why you need it, and how to save money on your license fees.
How music licensing works for restaurants & bars
Almost every restaurant or bar uses music in at least one of the following ways: streaming services, televisions, background music, live performers, DJs, karaoke, or a jukebox. With rare exception, every one of these uses qualifies as a “public performance” under U.S. copyright law, and every public performance requires permission from the music’s copyright owners before the music is played.
Blanket licenses from PROs are the standard way restaurants & bars comply with copyright law, and the simplest, most affordable way to stay protected: one annual fee paid to a PRO covers the use of that PRO’s entire catalog in unlimited frequency, without any need to track or report individual songs played. Obtaining a blanket license from all five US PROs would ensure that every song you play is properly licensed.
What happens if your restaurant or bar doesn’t properly license music
Playing music without proper licensing creates a significant amount of easily avoidable risk for a business. U.S. copyright law can result in statutory penalties of up to $150,000 per song played, plus the copyright owner’s attorney fees. Since the law applies to each song played, the exposure to penalties can quickly reach millions of dollars.
Music licensing FAQs for restaurants & bars
Do I need a license to play music in my restaurant or bar?
In almost all cases, yes. If you play copyrighted music where your customers can hear it, whether it is streamed, broadcast, performed live, or played from a device, that is a public performance, and you need permission from the copyright owners, usually through their PROs. The exceptions are narrow (for example, music in certain live religious services).
What is a “public performance,” and what is the “performing right”?
U.S. copyright law defines a public performance as music played anywhere outside a normal circle of family and friends. Songwriters, composers, and publishers hold the exclusive right to perform their music publicly and to authorize others to do so. This is the performing right. It works much like the “All Rights Reserved” notice on a movie: owning a copy does not give you the right to show it publicly.
What is a performing rights organization (PRO)?
A performing rights organization, or PRO, represents songwriters, composers, and publishers and licenses the public performance of their music. When a business plays music, the PRO collects a license fee and pays it to the creators of that music as royalties. The five U.S. PROs are ALLTRACK, ASCAP, BMI, SESAC, and GMR, and each represents a different catalog, so a business usually needs a license from each PRO.
How much does a restaurant or bar music license cost?
It depends on how you use music and the size of your business. PROs set license fees based on factors such as the type of establishment, square footage or occupancy, and whether recorded music, live music, or both are played. Most licenses are flat annual blanket license fees that cover the use of that PRO’s catalog in unlimited frequency. NMRA members can obtain discounts from ALLTRACK, BMI, and SESAC, as discussed further below.
We already subscribe to a streaming service like Spotify, Apple Music, or YouTube. Isn’t that enough?
No. Consumer streaming, whether free or subscription, is for personal consumption only. It does not grant your business the public performance rights it needs. Similarly, owning CDs, records, or digital downloads does not allow a business to play music without a license. Once you play music where the public can hear it, your business requires a performance license from the PROs.
I have a background music service. Do I need PRO licenses?
Usually, yes. While commercial background music services may include public performance licenses for some of the five PROs, they almost never include licenses for all five. Check which PROs your background service includes, then contact each remaining PRO to obtain performance licenses directly from them to ensure complete coverage.
Importantly, a background service never covers licensing for live bands, singers, DJs, TVs, karaoke, jukeboxes, or consumer apps like Spotify, Apple Music, or YouTube. If any of these forms of entertainment are offered by your business at any point during the year, it must obtain licenses directly from all five PROs to ensure adequate coverage.
Do we need a license if we only feature original or live music?
Usually, yes. “Original music” means songs written and performed by the same person (i.e., a singer-songwriter), but that singer-songwriter may still be affiliated with a PRO and is entitled to be paid for public performances. Even a true original song can involve more than one PRO: if the song has co-writers that are registered with different PROs, each of which licenses its own share. Live performers also frequently mix in well-known cover songs written by others, which require permission as well.
If musicians play live, aren’t they responsible for paying the performance license fees?
No. Under Copyright Law, venues are responsible for making sure performances are properly licensed. That responsibility cannot be passed on to the musicians, even if they are hired as independent contractors. The business playing the music requires a license before playing that music, so businesses should be proactive about obtaining PRO licenses.
Do we need a license to play radios or TVs?
Yes. Television and radio transmissions and broadcasts are full of copyrighted music, in sports, news, shows, and commercials. Therefore, playing them where your customers can hear them is a public performance, just like streaming a playlist or hiring a live band. To stay covered, you need a license from the PROs that represent that music.
We already have a license with one PRO. Do we need more than one?
Yes. Each songwriter can only belong to only one PRO at a time, so each PRO controls a different catalog of music. Practically speaking, there is no way to limit what your restaurant plays to a single PRO’s catalog. New songwriters join PROs everyday and begin releasing new music. Also, songwriters move from one PRO to another without any requirement to notify the businesses playing their music, so a song that was included in one PRO’s license at one point may not be covered later.
I received an email, call, or letter from a PRO. Do I have to pay?
Most likely, yes. PROs actively contact businesses that play music without a license, by email, letter, invoice, or phone, and if you publicly perform music the PRO represents, the obligation is real. Licensing is almost always far cheaper than ignoring it, since unlicensed use can carry penalties of up to $150,000 per song. NMRA members can use their membership discounts to obtain ALLTRACK, BMI, and SESAC licenses.
Meet the performing rights organizations (PROs)
There are five PROs in the United States, which collectively represent virtually all of the world’s copyrighted music. If your restaurant plays music, you most likely need a license from every US PRO. Three offer discounts to NMRA members: ALLTRACK, BMI, and SESAC.
ALLTRACK
ALLTRACK is a PRO created specifically to represent independent songwriters, composers, producers, and publishers across every major genre. It is the fastest-growing PRO in the United States and issues blanket licenses covering the use of its entire repertory in unlimited frequency, without any requirement to report what was played, and with pricing that is typically the lowest in the industry. ALLTRACK provides NMRA members a 15% discount on their annual fees. A self-serve license can be obtained online in under two minutes. You can also call them at 888.297.0218.
Secure a license or get a quote: Obtain your 15% discount by using promo code NMRA15 when checking out. Get started by clicking GET A LICENSE.
BMI
BMI is one of the largest PROs in the world, representing more than 1.3 million songwriters, composers, and publishers and over 22.4 million musical works. It offers blanket licenses for businesses across every genre, and NMRA members are eligible for a member discount.
Learn more or get a quote: bmi.com, email jfrost@bmi.com, or call 615.401.2873. Ask about NMRA member pricing.
SESAC
SESAC is a PRO representing more than 15,000 affiliated songwriters, composers, and publishers and over 1.5 million songs across all major genres. Affiliation with SESAC is by invitation, but any business that plays SESAC-represented music still needs a SESAC license.
Learn more or get a quote: sesac.com, or call 615.320.0055. Ask about NMRA member pricing.
Other PROs
ASCAP and GMR are the other two U.S. PROs. NMRA does not have an affiliation or member discount with either one. You can reach them at ascap.com and globalmusicrights.com.
This page is general information for NMRA members and is not legal advice. For questions about your specific situation, contact each PRO directly or consult a qualified attorney.