Your Restaurant, Bar, Gym, or Shop Got an ASCAP or BMI Music Licensing Letter: What to Do

Last updated: November 2026. Reviewed by Pavel Kolmogorov, California business litigation attorney (State Bar No. 321018).

Probably yes, unless the only music is a radio or television broadcast and your space is small enough. Playing songs for customers is a public performance, which the copyright owner controls. (17 U.S.C. § 106(4).) The exemption for businesses covers broadcast radio and television only. It applies to any restaurant or bar under 3,750 gross square feet, any other business under 2,000, and larger ones with limited speakers and screens. (17 U.S.C. § 110(5)(B).) Kolmogorov Law, P.C. defends businesses in Orange County, Los Angeles, and across California.

Call (909) 235-6116 or contact us online to discuss a music licensing demand before you sign a license or ignore another letter.

What the letter is, and why more than one group writes

ASCAP and BMI are performing rights organizations. Songwriters and music publishers authorize them to license the public performance of their songs and to collect the fees. Other organizations do the same for other catalogs, which is why a business that pays one may still hear from another.

The letter is not a lawsuit, and no statute gives you a set number of days to answer. It is not a scam either. Their members do sue. In the reported cases, suit has often followed years of letters and an investigator's visit.

What counts as a public performance

The owner of a musical work has the exclusive right to perform it publicly. (17 U.S.C. § 106(4).) To perform a work publicly means to perform it at a place open to the public, or anywhere a substantial number of people outside a normal circle of family and friends is gathered. (17 U.S.C. § 101.)

A dining room, a gym floor, a salon, and a sales floor all qualify. The source does not matter much. A playlist on a phone, a CD, a karaoke machine, a DJ, and a live band all perform the songs.

Owning the CD or paying for a personal subscription does not change this.

The radio and television exemption, with the numbers

Congress wrote an exemption for businesses that simply turn on the radio or television. It covers a broadcast of nondramatic music that originates from a licensed radio or television station, or from a cable or satellite carrier for audiovisual programs. (17 U.S.C. § 110(5)(B).)

The size limits are specific.

• A food service or drinking establishment qualifies if it has less than 3,750 gross square feet.
• Any other establishment qualifies if it has less than 2,000 gross square feet.
• Space used only for customer parking is not counted.

Gross square feet means the entire interior space plus any adjoining outdoor space used to serve patrons, such as a patio. (17 U.S.C. § 101.)

A larger business can still qualify with limited equipment. For audio, that means no more than six loudspeakers in total and no more than four in any one room or adjoining outdoor space. For television, it means no more than four screens, no more than one per room, and none larger than 55 inches diagonally, with the same speaker limits. (17 U.S.C. § 110(5)(B)(i), (ii).)

Three conditions apply at any size. You may not charge customers directly to see or hear the broadcast. You may not retransmit it beyond your premises. And the broadcast itself must be licensed by the copyright owners. (17 U.S.C. § 110(5)(B)(iii)-(v).)

The exemption is written for broadcasts. By its terms it does not reach playlists, on-demand streaming apps, CDs, karaoke, DJs, or live bands, whatever the square footage.

Streaming apps, live bands, and DJs

Most consumer streaming subscriptions are sold for personal use, and their terms usually say so. Background music services built for businesses generally say that they include the performance licenses, though coverage varies by service. If you already pay for one, send the performing rights organization proof and ask it to close the file.

"The band picks the songs" is not a defense. A business is vicariously liable when it has the right and practical ability to stop the infringing performance and profits from it, and the individual who controls the venue can be liable alongside the company. (Range Road Music, Inc. v. East Coast Foods, Inc. (9th Cir. 2012) 668 F.3d 1148, 1155.)

Music in your advertising raises different rights, covered on our page on music in social media ads.

What ignoring the letters can cost

If a suit is filed, the copyright owners usually elect statutory damages. The ordinary range is $750 to $30,000 per song, and up to $150,000 per song if the infringement was willful. (17 U.S.C. § 504(c).) Years of ignored letters are often the plaintiffs' best evidence of willfulness. Our page on statutory damages and attorney fees explains how courts choose a number.

The court may also award attorney fees to the prevailing party. (17 U.S.C. § 505.) In the Ninth Circuit case cited above, involving a Southern California restaurant lounge, the award of attorney fees and costs was several times larger than the statutory damages for eight songs. (Range Road Music, supra, 668 F.3d at p. 1152.)

A weak exemption argument carries its own penalty. If the court finds that a proprietor claimed the broadcast exemption without reasonable grounds, the plaintiff is entitled to an additional award of twice the license fee the proprietor should have paid, for up to three years. (17 U.S.C. § 504(d).)

Compared with those figures, an annual license is usually the cheaper path.

A sensible response to an ASCAP or BMI license letter

Start with facts. What music is played, from what source, on how many speakers and screens? How many gross square feet is the space, leaving out areas used only for customer parking? Is there ever a band, a DJ, or karaoke?

Then do the following.

• If you qualify for the exemption, say so in writing and keep your measurements.
• If you use a business music service, send proof of the subscription.
• If you need a license, ask for the rate schedule and confirm how your fee is calculated.

Do not answer with an angry email describing what you play, and do not sign a license without reading what it covers.

I treat these letters the way I treat any demand letter to a business: verify the claim, measure the exposure, and answer once. If a complaint is filed, it will be in federal court, which for Orange County and Los Angeles businesses usually means the Central District of California, in Santa Ana or Los Angeles. Our page on copyright infringement letters covers other kinds of copyright demands.

What to bring to the first meeting

• Every letter and email from the licensing organization, with dates.
• The square footage of the premises from your lease or floor plan.
• A count of speakers and screens, by room.
• Your music source: subscription invoices, service agreements, or equipment.
• A calendar of any live music, DJ, or karaoke nights.

Frequently asked questions

Do I need a music license for my business?

Usually, if you play recorded or live music for customers in California. Federal law gives the copyright owner the exclusive right of public performance. (17 U.S.C. § 106(4).) The main exception is a qualifying radio or television broadcast in a small establishment, or in a larger one with limited speakers and screens. (17 U.S.C. § 110(5)(B).)

ASCAP keeps sending letters saying my restaurant needs a license for the music we play. Do I really have to pay?

If your California restaurant plays copyrighted songs through playlists, streaming apps, or live music, yes, some license is needed. If it only plays broadcast radio or television and has less than 3,750 gross square feet, the federal exemption likely applies, and you can say so in writing. A commercial background music service that includes licensing is another lawful route.

Can I play the radio in my store without a license?

Often yes. A store other than a restaurant or bar may play a licensed radio broadcast without a performance license if it has less than 2,000 gross square feet and does not charge customers to hear it. A larger store may do so with no more than six speakers, and no more than four in any one room. (17 U.S.C. § 110(5)(B).) The rule applies equally to California retailers.

We hire a DJ on weekends, and he says he has his own license. Does that protect my bar?

Do not rely on it without seeing the document. Performance licenses are often issued to the venue, and under Ninth Circuit law a California venue that controls the premises and profits from the music can be vicariously liable for what a performer plays. Ask the DJ for the license and ask the licensing organization whether it covers your location.

What happens if I ignore a BMI or ASCAP letter?

Often more letters, and sometimes an investigator's visit and a federal lawsuit by the songs' owners. A court can award $750 to $30,000 per song, more for willful infringement, and may add attorney fees. (17 U.S.C. §§ 504(c), 505.) A California business that has a valid exemption should document it and respond instead of staying silent.

Talk to a California copyright defense attorney

If a licensing organization is threatening suit, or you want a clear answer on whether you owe anything, call (909) 235-6116 or contact us online. Kolmogorov Law, P.C. is located at 327 Magnet, Irvine, CA 92618, and represents businesses in Orange County, Los Angeles, and throughout California. For other copyright disputes, start with our intellectual property page.

This page provides general information about federal copyright law and is not legal advice. Outcomes depend on the music source, the premises, the facts, and the court.