You must often pay fees for playing recorded music, although there are a number of helpful exceptions.

Imagine that you own a small store or cafe. You want some tunes playing in the background while the customers shop, setting a friendly and welcoming tone. But if you play a song by Lady Gaga in your store and you haven’t got Ms. Gaga's permission, you are probably violating copyright law. Why?

Copyright law gives copyright holders certain exclusive rights. The owner of a song's copyright controls the right to make public performances of that song. Playing a record in your store is considered a public performance.

Is It Really Worth Paying for an Annual License?

You might wonder how a copyright owner would ever know that you’re playing their song without permission. Most popular songwriters has assigned the job of collecting payments for public performance to a performing rights society—usually BMI, ASCAP, or SESAC. These organizations have representatives who scour retail establishments, find businesses that are playing recorded or live music, and then demand that these businesses enter into a license.

The owner of a store that is more than 2,000 square feet (or any food service or drinking establishment with more than 3,750 square feet) will pay approximately $500 a year to the three primary performing rights organizations. If your store has live performances, assume you will have to pay an additional annual fee plus a per-performance fee of at least $35 per performance. If your store has a café, you may be required to pay a different rate for music played in the café area.

How Can You Avoid Paying These Fees?

Many small businesses make seek to avoid paying these sorts of licensing fees. Here are five suggestions that will allow you to play music without the costs: