Why Restaurants May Turn Off The Music in Central Texas

3 Minute Read
By K. Williams at visualdesignsgroup.com

There’s nothing like an evening out at your favorite restaurant where the meal is decadent and the playlist is packed with all of your bonafide jams. From first sip to final bite, the music sets the tone as much as the menu. Restaurants have become more than places to eat, they serve atmosphere. Whether its curated playlists on Spotify and Apple Music or ambient loops from Amazon Music, Pandora, and YouTube Premium, streaming services have become essential ingredients in the modern dining experience.

Even the most carefully selected music queue can come with a costly catch. Streamed tracks, when played in public spaces without proper licensing, can turn ambiance into liability, leaving restaurant owners staring down lawsuits and hefty fees. Music licensing, once a niche concern, is now a battleground where copyright law, performance rights, and surprise lawsuits collide in a tangle of red tape and contractual fine print.

Welcome to a world where playing a Billboard Top Ten hit without permission could cost you more than the monthly rent on your establishment.

Restaurants and bars often rely on music to set the mood, but many don’t realize that playing copyrighted songs publicly requires a license from performance rights organizations (PROs) like ASCAP, BMI, and SESAC. These organizations routinely assess public venues and use specific techniques to track compliance with music licensing requirements.

If caught, businesses can face lawsuits demanding thousands in damages, sometimes $750 per song played. And yes, even if you bought the CD or stream from a paid account, it doesn’t count. Public performance rights are a distinct legal category and can quickly escalate into licensing disputes and financial penalties if overlooked.

(Answer is at the end of the article)

The Cost of Not Knowing

Licensing fees vary based on square footage, number of speakers, live vs. recorded music, and whether a cover charge is collected. A small bar might pay $500–$1,500 per PRO annually, while venues with live music can pay much more. Some restaurant owners call it a “legal shakedown,” but the law is clear: if you play music publicly, you need permission.

Did You Know?

BMI sued 69 Taps in Medina, Ohio in 2014 for allowing a cover band to perform popular songs like “Free Bird,” “Jessie’s Girl,” and “Brown Eyed Girl” without proper licensing. The lawsuit cited 10 songs and sought up to $1.5 million in damages for willful copyright infringement.BMI also sued Foster’s Restaurant in North Carolina in 2011 after 56 failed attempts to resolve the issue out of court. Despite 29 warning letters, Foster’s continued playing four copyrighted songs and was ultimately fined $30,450.

Even hotels have seen licensing costs rise by 200–400% in recent years. And if you think you’re safe using Spotify or Pandora, think again. These platforms aren’t licensed for commercial use unless you go through a business music provider.

Jukeboxes require a special license from the Jukebox License Office (JLO), which covers all three major PROs. And yes, if a live band slips in a cover song without permission, the venue, not the musician, is liable.

Loopholes and Lifelines

Under the Fairness in Music Licensing Act of 1998, certain exemptions apply. For instance, restaurants measuring less than 3,750 square feet may legally play music from radio or television without a license, but only if they meet strict conditions, such as limited speaker placement, no admission fees, and no promotional tie-ins.

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https://distinguished.com/blog/lawsuits-hit-hospitality-industry-for-copyright-infringement/

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Timeline Behind Performance Law

1976 – The Copyright Act was established public performance rights for music

1914 – ASCAP was founded to protect composers and publishers

1930 – SESAC, originally focused on European stage authors

1939 – BMI launched as an alternative to ASCAP

1998 – The Fairness in Music Licensing Act created exemptions for small venues

Correct Quiz Answer:

B) Send undercover representatives posing as customers

Explanation:

Performance rights groups send undercover reps to public venues to catch unlicensed music use, gathering evidence before pursuing fines or lawsuits on behalf of songwriters and copyright holders.

K. Williams is a content contributor at Wilco Connection and graphics design specialist at visualdesignsgroup.com