Music Licensing 101 for Independent Restaurateurs

Several years ago, one of our readers contacted our publishing offices to inquire about an organization that told her she would have to submit an annual fee if she continued to play recorded music for her guests' entertainment.

"Are they serious?" she asked.

If the organization was one of several U.S. performing rights organizations, which include ASCAP (American Society of Composers, Authors and Publishers), BMI (Broadcast Music Inc.), SESAC (SESAC Inc.) and newcomer GMR (Global Music Rights), the answer to her question is very likely 'YES.'

These are "performing rights organizations" (PROs), which serve as middlemen on behalf of their composers, lyricists and publisher members. The PROs issue blanket licenses, described by ASCAP as "a license which allows the music user to perform any or all of [the] songs in the [PRO's] repertory as much or as little as they like. Licensees pay an annual fee for the license.

You know better than anyone, there's no such thing as a free lunch so your best strategy is to know how the music licensing game is played.

The blanket license saves music users the paperwork, trouble and expense of finding and negotiating licenses with all of the copyright owners of the works that might be used during a year and helps prevent the user from even inadvertently infringing on the copyrights of [the PROs'] members and the many foreign writers whose music is licensed by [the PRO] in the U.S."

Particularly, folks who are new to the restaurant and bar business have trouble with the notion that you have to pay a third party to entertain your guests with music played over a sound system or performed by a band. After all, you purchased the CDs and paid the band. Everybody is covered, right?