ATTORNEY STEVE® – CALL US IF YOU NEED HELP WITH ASCAP, BMI, OR SESAC DEMAND LETTERS, MUSIC LICENSING COMPLIANCE, OR COPYRIGHT INFRINGEMENT DEFENSE – (877) 276-5084
INTRODUCTION
If you have received a demand letter from a performing rights organization such as ASCAP, BMI, or SESAC, you are not alone.
We are seeing a significant rise in enforcement actions against small and mid-sized businesses across the United States. Restaurants, bars, gyms, retail stores, and even event venues are increasingly being targeted for alleged unlicensed public performances of music.
This guide explains how these claims arise, what your legal exposure may be, and what steps you should take to protect your business.
THE LEGAL FRAMEWORK: WHY MUSIC IN A BUSINESS REQUIRES A LICENSE
Under U.S. copyright law, the public performance of copyrighted music requires authorization from the copyright owner.
This right is governed primarily by:
- 17 U.S.C. § 106 (exclusive rights of copyright holders)
- 17 U.S.C. § 504 (statutory damages)
When music is played in a commercial setting, it is considered a public performance, even if it is:
- Background music in a store
- A playlist streamed from a personal account
- Live music performed by a band or DJ
- Music played during events or classes
Failure to obtain proper licensing can expose a business to copyright infringement claims.
THE MOST COMMON MISCONCEPTION
One of the most frequent defenses we hear is: “I already pay for Spotify or Apple Music.”
This is incorrect.
Streaming services such as:
- Spotify
- Apple Music
- YouTube
provide personal-use licenses only.
They do not grant the right to publicly perform music in a commercial environment. Playing music from these platforms in a business setting can still constitute infringement.
UNDERSTANDING YOUR POTENTIAL LIABILITY
Many business owners underestimate the financial risk associated with these claims.
Typical exposure includes:
- Statutory damages of $750 to $30,000 per infringed work
- Up to $150,000 per work for willful infringement
- Attorneys' fees and litigation costs (in some cases)
Importantly:
- Each song may be treated as a separate violation
- A single evening of music can result in multiple claims
We have seen cases where relatively minor use escalates into significant settlement demands or litigation exposure.
HOW ASCAP AND BMI ENFORCEMENT TYPICALLY WORKS
Based on our experience, enforcement tends to follow a predictable pattern:
-
Initial outreach
The organization contacts the business by phone, email, or letter offering a license. -
Repeated follow-ups
Multiple attempts are made over time to secure compliance. -
Investigation
Investigators may visit the business and document songs being played. -
Demand letter or lawsuit
If the business remains unlicensed, a formal demand or federal lawsuit may follow.
A key point to understand:
- The business owner is typically held liable
- Liability generally does not shift to DJs, bands, or employees
WHY IGNORING THE LETTER IS A SERIOUS MISTAKE
One of the most common and costly errors is ignoring correspondence from a performing rights organization.
Many lawsuits arise only after:
- Dozens of outreach attempts
- Extended periods of non-response
- Documented instances of continued music use
Ignoring the issue can increase the likelihood of:
- A finding of willfulness
- Higher statutory damages
- Reduced negotiating leverage
PRACTICAL OPTIONS IF YOU RECEIVE A DEMAND LETTER
If your business has received a demand letter, you may have several options depending on the facts:
1. Evaluate the Claim
- Determine whether music was actually performed
- Identify what songs were allegedly used
- Assess whether any exemptions or defenses apply
2. Become Compliant
- Obtain a proper license from ASCAP, BMI, or SESAC
- Transition to a commercial music provider if appropriate
3. Negotiate Resolution
- Many matters can be resolved without litigation
- Contact a lawyer specializing in ASCAP resolution cases
- Settlement amounts may be negotiated depending on exposure and defenses
4. Challenge the Allegations
- In some cases, claims may be overstated or unsupported
- Legal defenses may reduce or eliminate liability
PREVENTATIVE STRATEGIES FOR BUSINESS OWNERS
The most effective way to avoid these disputes is proactive compliance.
Recommended steps include:
- Securing blanket licenses from relevant performing rights organizations
- Training staff on proper music usage policies
- Avoiding reliance on personal streaming accounts
- Consulting counsel before responding to enforcement communications
These measures are typically far less expensive than defending a lawsuit.
HOW VONDRAN LEGAL® CAN ASSIST
Our firm represents businesses nationwide in copyright and music licensing matters. We assist with:
- Responding to ASCAP, BMI, and SESAC demand letters
- Negotiating settlements and reducing exposure
- Defending federal copyright infringement claims
- Advising on compliance and licensing strategies
We understand the enforcement practices of these organizations and work to position our clients for the most favorable outcome. You can contact us at (877) 276-5084 or reach out by email for a free initial consultation to evaluate your options.
