Playing music in a business is a public performance
Under US copyright law, playing recorded music where the public can hear it – in a restaurant, store, gym or waiting room – is a public performance. Songwriters and publishers license those rights through performing rights organizations (PROs): ASCAP, BMI, SESAC and GMR. A personal streaming subscription or a CD you bought does not include a public performance license.
The small-business exemption
The Fairness in Music Licensing Act of 1998 added 17 U.S.C. §110(5)(B), which exempts some businesses that play radio or TV broadcasts (and cable or satellite TV) for customers:
Food/drinking establishments under 3,750 sq ft · other businesses under 2,000 sq ft → exempt regardless of equipment
Larger businesses can still qualify if their equipment stays within the limits:
| Condition | Limit |
| Loudspeakers in total | Not more than 6 |
| Loudspeakers per room or adjoining outdoor space | Not more than 4 |
| TVs / audiovisual devices in total | Not more than 4 |
| TVs per room | Not more than 1 |
| Screen size | Diagonal not greater than 55 inches |
| Admission | No direct charge to see or hear the transmission |
| Retransmission | Not transmitted beyond the establishment |
What the exemption does not cover
- Music from personal streaming apps, CDs, downloads, playlists or satellite radio subscriptions intended for personal use.
- Live music, DJs, karaoke and jukeboxes (jukeboxes have their own licensing).
- Music on hold played through phone systems, and music on websites.
Licensing options
The simplest route is a business music service whose subscription includes public performance licenses. Otherwise, contact each PRO for a blanket license; fees depend on business type, square footage, occupancy and whether music is live, recorded or used for dancing.
Frequently asked questions
Can I play Spotify in my store or restaurant?
Not with a personal account – consumer streaming terms forbid commercial use, and the copyright exemption doesn't cover streaming.
How big can a restaurant be to play the radio without a license?
Under 3,750 gross square feet with any equipment, or larger if it stays within 6 speakers and the TV limits.
Do retail stores need a music license?
Stores under 2,000 sq ft playing radio or TV broadcasts are exempt; others need licenses or must meet equipment limits.
What happens if I play music without a license?
PROs may send notices and sue; statutory damages range from $750 to $30,000 per song, up to $150,000 if willful.
Does a business music service include licensing?
Most commercial background music services include PRO licenses – check your contract.
About PlayLegal
PlayLegal is an independent, free educational tool for restaurants, bars, retailers, gyms, salons and offices. It follows the text of 17 U.S.C. §110(5)(B) but does not cover every situation, and it is not legal advice. Consult a copyright attorney for your circumstances. We are not affiliated with ASCAP, BMI, SESAC, GMR or any music service.
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Last updated: October 28, 2026
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