Who Pays ASCAP & BMI fees?
Who pays ASCAP and BMI fees when music plays at a business?
It depends on how the music is used and which licenses or provider agreements already cover it.
ASCAP and BMI represent different repertoires, so a business may need more than one licensing arrangement.
Start by separating music played through a licensed service from music the venue plays independently and from live entertainment. Then check who provides public performance permission for each use.
A curated playlist alone does not establish licensing coverage.
When ASCAP & BMI Fees Are “Covered”
Some business music services include public performance licensing for music played through their systems. In that case, the business pays the provider for the covered background music. Check the agreement to see which music, locations, and types of playback it covers.
The Music Trust’s overhead music service includes ASCAP and BMI public performance licensing for music played through that service.
When ASCAP & BMI Fees Are NOT Included
A background music service like The Music Trust generally does not cover a live band or DJ at the venue. The venue usually needs to arrange the public performance licenses applicable to those performances, even when it hires outside entertainers.
If you want to book a DJ or Band, our team can assist, but any fees outside of the backline & talent fee have to be paid by the venue. As BMI explains, the business remains responsible for music performed by hired bands and DJs.
In addition, some cities require a special license to have live musicians perform. In Chicago for instance, your venue may need a PPA License. Those are typically based on capacity & business type.
Can a Business Need More Than One Music License?
Yes. Licensing depends on both the songs being played and how the business uses them.
ASCAP, BMI, and other performing rights organizations represent different music, so one organization's license does not automatically cover another's repertoire. A business music service may cover music played through that service, while other music uses at the same venue need separate attention.
| Music use | Who handles licensing? | What to check |
|---|---|---|
| Background music through a licensed business music service | The service may include public performance licensing for music played through it; the business pays for the service. | Confirm which music, locations, and types of playback the agreement covers. |
| Recorded music the venue plays from another source | The business must confirm that its playback source permits business use and arrange any public performance licenses it needs. | Access to a recording or playlist does not, by itself, grant permission to play the music publicly. |
| A live band or DJ | The venue generally arranges the applicable public performance licenses. | Coverage for everyday background music may not extend to live or DJ performances. |
| A new music use, such as karaoke or a ticketed event | The venue and any event organizer should establish who is responsible for the necessary permissions. | An existing license may need to be updated when the way music is used changes. |
Music Licensing FAQs
The answers below explain how music licensing fees are determined, what can happen when music is played without permission, and who’s typically responsible for licensing for live performances.
1. How Much Do ASCAP and BMI Licenses Cost for a Business?
ASCAP and BMI do not charge every business the same fee.
Each organization licenses its own repertoire, and costs depend on the type of business and how music is used.
Factors can include:
Recorded background music versus DJs or live bands
How often music is played
The size of the space.
For an accurate estimate, review the current terms for your business type or request a quote from each organization.
Music curation selects and organizes what plays; music licensing determines which public performances are authorized.
A business music service may combine both and include fees for its covered playback in the subscription. Uses outside that agreement—such as a different music source, DJ, or live band—may require separate licenses.
2. What Is Music Copyright Infringement?
It’s the use an artist’s work without proper permission.
That can mean that performing, playing, reproducing, or distributing protected music without the proper licensing (permission) to do so.
If you’re sued for music copyright infringement, the damages can be steep.
In fact, in a copyright infringement case, statutory damages can reach $150,000 per infringed work if the infringement is found to be willful.
Keep in mind that the $150k figure is a legal maximum, not an automatic penalty.
3. What If I Stream Music in My Venue without Obtaining a Music License?
You can get sued.
Playing copyrighted music publicly without the required permission can expose your business to a copyright infringement claim. With that:
Paying for a personal streaming subscription does not authorize business playback. So, this wouldn’t be a viable defense if you were facing one of these claims.
It’s crucial to confirm that your music source permits commercial use and that the applicable public performance rights are covered.
4. Are Bands or DJs Responsible for the Venue’s Music Licenses?
Generally, no.
The venue usually obtains the public performance licenses needed for music played by hired bands or DJs.
For a ticketed event or one produced by an outside organizer, confirm the licensing arrangements and whether the venue’s existing coverage applies.
Still Have Questions?
List each way your business uses music—from curated playlists and other recorded playback to DJs, live bands, and special events.
Then, compare those uses with your service agreements and any licenses you already hold. ASCAP’s music licensing FAQs and BMI’s licensing FAQs can help you check coverage for their respective repertoires.
If you’re planning your venue’s music program, tell us about your setup using the form below. We can discuss curation, explain what our services cover, and flag uses that may require separate licensing.
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