Music Licensing

Whether it's a live band, karaoke, or background music, studies show that music creates a more memorable and enjoyable experience, and drives repeat business.

However, using music in your club requires permission from the writers who created it according to federal copyright law. This is most efficiently done by licensing with Performing Rights Organizations (PROs).

PROs represent copyrighted songs owned by songwriters, composers, and music publishers. Songwriters and composers can only join one PRO to collect royalties on their behalf, and the PRO then provides blanket licenses to establishments that allow them to legally perform all the songs they represent. Each PRO exclusively represents different writers, so if you use a range of popular music, you may decide you need to get a license from the four major PROs:

• American Society of Composers, Authors, and Publishers (ASCAP)
• Broadcast Music Incorporated (BMI)
• Global Music Rights (GMR)
• SESAC, Inc

There is no exclusion for private clubs. Under US copyright law, the owner of an establishment in which the copyrighted material is performed is liable for any unauthorized performances, regardless of the source. This includes live performances, bands, DJs, and streaming services.

Each club needs to examine their own music usage and determine what licenses would best cover their usage. Clubs should request a complete list of the songs licensed by each new PRO to help determine whether you are likely to perform any of their affiliated music. The Better Business Bureau’s Music in the Marketplace is a good read on this topic.