Licensing Exemption

Section 110(5)(B) provides a limited exemption for certain performances of music in food service, drinking and retail establishments by means of radio and television transmissions.

 The exemption applies only to performances of music originated by a broadcast radio or television station or a cable system or satellite carrier, only if no direct charge is made to see or hear the performances, only if the performances are not further transmitted beyond the establishment where they are received, and only if the original transmission is licensed by the copyright owners -- that is, the radio or television station, cable system or satellite carrier is licensed by the copyright owners or their performing rights organizations.

 The exemption contains objective standards which will enable both music users and copyright owners to determine whether particular radio and television performances are exempt from copyright liability. Two types of music users are exempt, under different standards: a food service or drinking establishment (defined as "a restaurant, inn, bar, tavern, or any other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink, in which the majority of the gross square feet of space that is nonresidential is used for that purpose, and in which nondramatic musical works are performed publicly") and an other establishment (defined as "a store, shop, or any similar place of business open to the general public for the primary purpose of selling goods or services in which the majority of the gross square feet of space that is nonresidential is used for that purpose, and in which nondramatic musical works are performed publicly").

A food service or drinking establishment is eligible for the exemption if it (1) has less than 3750 gross square feet of space (in measuring the space, the amount of space used for customer parking only is always excludable); or (2) has 3750 gross square feet of space or more and (a) uses no more than 6 loudspeakers of which not more than 4 loudspeakers are located in any 1 room or adjoining outdoor space; and (b) if television sets are used, there are no more than 4 televisions, of which not more than 1 is located in any 1 room and none has a diagonal screen size greater than 55 inches.

 An other establishment (e.g., a retail store) is eligible for the exemption if it (1) has less than 2000 gross square feet of space; or (2) has 2000 or more gross square feet of space and satisfies the same loudspeaker and television set requirements as for food service or drinking establishments.

Of course, this exemption is limited to those radio or television performances; the law requires that public performances of copyrighted music by other means such as live music, karaoke, CDs, MP3 and digital files, background music services and DVDs require permission obtained either from the copyright owners or from their performing rights licensing organizations.