Many venue owners first hear about music licensing when a letter arrives from a performing rights organization asking which licenses they hold. The assumption that the DJ or band handles it, or that private events do not count, is common and often wrong.
The basics are simpler than those letters make them sound. Nothing here is legal advice, and the details depend on your venue and how music is used, so confirm your situation with the organizations themselves and an attorney who works with copyright.
Do Event Venues Need Music Licensing?
Most event venues in the United States that host events with live or recorded music need public performance licenses, usually from more than one performing rights organization such as ASCAP, BMI, SESAC and GMR. These organizations license the right to perform songs publicly on behalf of the songwriters and publishers they represent. In practice they generally look to the venue, as the business where the music is performed, to hold the license, including when a client hires the DJ or band.
What Performing Rights Organizations Do
Performing rights organizations, often called PROs, collect license fees from businesses that play music publicly and pay royalties to songwriters and publishers. Each one represents a different catalog of songs.
- ASCAP and BMI are the two largest and represent a large share of commercially released songs between them
- SESAC is smaller and represents a selective catalog
- GMR, Global Music Rights, represents a smaller group of high-profile songwriters
- Each licenses only the songs in its own catalog
Because a typical DJ set or band repertoire includes songs from all of them, a venue that hosts parties with a broad mix of music usually needs a license from each organization whose catalog it plays.
Which Events Usually Trigger a License
Copyright law treats a performance as public when it happens in a place open to the public, or where a substantial number of people gather beyond a normal circle of family and friends. Events at a commercial venue usually fit that description, including weddings, corporate parties and fundraisers.
- Live bands, DJs and solo performers
- Recorded music played over the venue's sound system
- Background music in lobbies, bars and cocktail hours
- Ticketed concerts, shows and dance nights you produce yourself
Narrow exemptions exist, such as limited ones for small businesses playing radio or television broadcasts, but they rarely fit an event venue. A personal streaming account is generally licensed for personal use only, so it does not cover playing music to event guests.
Who Pays When a Client Brings a DJ?
The client's DJ or band brings the performance, but the PROs generally license the establishment where it happens. A DJ's own licenses, if they hold any, usually cover other rights, such as copying music files, and do not replace the venue's public performance licenses.
Many venues treat their PRO fees as an overhead cost spread across rental rates. Some list a small music licensing fee on each event. Either approach works if the contract is clear.
Events you produce yourself are a different case. When the venue sells tickets to a concert, a dance night or a holiday show, it is both the venue and the promoter. Some PROs license concerts and ticketed events under separate terms from general venue licenses, so ask how your own events should be reported. If an outside promoter rents the room for a ticketed show, the rental contract should say which party handles licensing for that event.
How License Fees Are Usually Calculated
Each organization sets its own rate schedules, and they change over time. Fees for venues generally depend on factors such as capacity or occupancy, how often music is used, whether it is live or recorded and whether admission is charged.
Ask each organization for the rate schedule that matches your type of business. Event venues do not always fit neatly into categories built for bars, restaurants or concert halls, so explain how your space is used.
Questions to Ask Each Organization
Contact each PRO directly and get answers in writing.
- Which license category fits an event venue that hosts private and public events?
- How is the fee calculated, and what information do you need?
- Does the license cover live music, recorded music and DJs?
- Does it cover ticketed events the venue produces itself, or is a separate license needed?
- How are renewals and reporting handled?
Keep copies of every license and renewal date in one place. If a representative contacts you, being able to show current licenses quickly ends most conversations.
Related Rules to Keep in Mind
Music licensing sits alongside other rules that affect music at events. Local noise ordinances set limits on volume and hours, and some cities require entertainment or amusement permits for live music. Check with your city or county as well as the PROs, and write any limits into your contracts and vendor rules.
Review Your Music Licensing This Month
List every way music is used in your venue, from background playlists to live bands and your own ticketed events. Check which PRO licenses you hold, when they renew and whether they cover each use. Fill any gaps before your next busy season.
Frequently Asked Questions
Does a wedding venue need an ASCAP or BMI license?
Generally yes, if music is performed there by DJs, bands or recorded playlists. Weddings at a commercial venue are usually treated as public performances for licensing purposes. Contact each organization to confirm which license fits your venue.
Does the DJ's license cover the venue?
Usually not. PROs generally expect the venue where the music is performed to hold public performance licenses. A DJ's own licenses typically cover other rights and do not replace the venue's.
What happens if a venue plays music without a license?
The PROs may contact the venue to request a license, and unlicensed public performance can lead to copyright infringement claims. Those claims can be costly. Getting licensed proactively is usually simpler and cheaper.
Do I need licenses from ASCAP, BMI, SESAC and GMR?
Many venues need more than one, since each organization represents different songs and most events play music from several catalogs. Which ones you need depends on the music performed at your venue. Ask each organization and an attorney if you are unsure.
