Music License for Restaurant – Types, Benefits, and Process

Every restaurant in India that plays music, whether live or pre-recorded, is legally required to obtain a Music License for Restaurant. Music is classified as an intangible asset and falls under the protection of the Copyrights Act, 1957. Without the appropriate license, playing music publicly in a restaurant is a violation of the law. Compliance with music licensing regulations ensures that the rights of music creators are respected and upheld.

Regulatory Authorities for Music License for Restaurant

The primary regulatory authority that issues Music License for Restaurant is the Indian Performing Rights Society (IPRS). Another important licensing body is the Phonographic Performance Limited (PPL). Restaurant owners must understand which organization is appropriate depending on whether the music is live or recorded. Even pre-recorded music being played in the background at a restaurant requires a proper music license.

Types of Music License for Restaurant

There are two primary types of Music License for Restaurant that establishments must consider based on how the music is used:

Recorded Music License

If a restaurant plays recorded music—such as songs via speakers or digital music systems—a Recorded Music License is mandatory. This license is generally issued by the Phonographic Performance Limited (PPL). PPL is an autonomous organization that facilitates the licensing of recorded music to restaurants. Acquiring this license is essential for ensuring compliance with copyright laws.

Public Performance License (PPL License)

Restaurants that feature live music performances require a Public Performance Music License. This license is typically issued by the Indian Performing Rights Society (IPRS). The IPRS ensures that composers, songwriters, and lyricists receive royalties for public performances of their work. For live music at a restaurant, securing a PPL license is essential.

Which Establishments Require a Music License for Restaurant?

Many types of establishments must secure a Music License for Restaurant if they use music in their operations. These include: 

• Restaurants and cafes

• Bars and pubs

• Lounges and dining halls

• Coffee shops and lunch homes

• Hotels with in-house restaurants or music zones 

Any place that plays music for the public, whether recorded or live, is required to get the relevant license.

Benefits of Music License for Restaurant

The following are the benefits of getting Music License for Restaurant:

Popularity

A Music License for Restaurant allows owners to legally play music, which makes the dining experience more enjoyable for customers. People are naturally drawn to places with good ambiance, and music is a key part of creating that. Licensed music enhances the popularity of a restaurant and attracts more footfall.

Increase Reputation

Obtaining a Music License for Restaurant adds to the credibility and reputation of the establishment. A legally compliant business is viewed more favorably by customers and authorities alike. It reflects professionalism and ethical business practices, which can lead to a better brand image in the market.

Compliance

A Music License for Restaurant ensures the restaurant complies with the provisions of the Copyrights Act, 1957. Running a restaurant without a music license can attract penalties and legal action. Hence, timely licensing protects the business from potential legal complications.

Objectives of Securing Music License for Restaurant

The following are the objectives of obtaining Music License for Restaurant:

To Protect Authors’ Rights

Securing a Music License for Restaurant is essential for protecting the rights of music composers and lyricists. Under the Copyright Act, 1957, the term "author" includes creators of original musical works. Whether the music is live or recorded, the copyright belongs to the composer. By getting the appropriate license, the restaurant ensures that the original creators are compensated for their work.

To Comply with the Law

Playing music without a proper license is a violation of intellectual property rights under the Copyrights Act, 1957. Compliance with licensing regulations is necessary to avoid legal penalties. It ensures that the business is not only law-abiding but also ethical in its operations.

Procedure for Registration of Music License for Restaurant

The following is the procedure for Registration of Music License for Restaurant:

Step 1: Visit the Official Website

The first step is to identify whether the license should be obtained from IPRS or PPL. For licenses issued by IPRS, the applicant can visit https://www.iprs.org. For licenses from PPL, the website is https://www.pplindia.org. These websites contain all the required forms and guidelines.

Step 2: Determine the Type of License Required

The applicant must then determine whether the license is for pre-recorded music or live performances. Depending on this, either the IPRS or PPL website should be used for application. Proper classification is crucial to avoid future compliance issues.

Step 3: Select Between Pre-recorded License or PPL License

Once the music type is confirmed, the appropriate license type must be selected. This ensures that the restaurant is fully covered for the kind of music it intends to play.

Step 4: Provide Required Information

The following details need to be submitted during the application process: 

• Complete address and location of the restaurant

• Type of music that will be played (live or recorded)

• Nature and scope of the business

• Details about public performance areas

• Contact information including email and phone number

• GSTIN, PAN, and TAN numbers

• Payment details for license fee 

Step 5: Read the Tariff Applicable (Restaurant Tariff)

Applicants must review the tariff section under the licensing form available at IPRS’s website. Under the “Public Performance” tab, select the category “Restaurants, Bars, Lunch Homes, Coffee Shops, Dining Rooms, and Eating Houses etc.” The applicable tariffs are: 

• Rs. 10,000 for restaurants in metropolitan cities

• Rs. 5,000 for restaurants in non-metropolitan cities 

There is a standard deduction of 20% from the license fee for the promotion of artists. Restaurants must follow the tariff rules and general conditions mentioned in the licensing form.

Step 6: Submit the Application

After filling in all the required information, the application must be submitted online through the respective website. An OTP (One-Time Password) will be generated during the submission. Once verified and vetted by the authority, a letter of registration will be issued. This letter confirms that the application has been accepted and the restaurant is now licensed to play music legally.

Factors that Determine the Cost of Music License for Restaurant

The following are some important factors that determine the cost of Music License for Restaurant:

Type of Place

Larger establishments with multiple zones or sections may be charged a higher licensing fee. The size of the restaurant has a direct impact on the cost.

Number of Hours

The duration for which the restaurant operates plays a major role. Restaurants that operate for long hours throughout the day are likely to incur higher license costs.

Number of Songs Played

If the restaurant has a diverse playlist or frequently changes its music, the licensing fee may be adjusted accordingly. The frequency and variety of music used are cost factors.

Capacity of the Venue

The number of people the restaurant can accommodate also affects the licensing cost. Higher seating capacity usually means a higher fee due to increased public exposure.

Documents Required for Music License for Restaurant

The applicant must prepare and submit the following documents for obtaining the Music License for Restaurant: 

• Detailed business information of the restaurant

• Identification documents like PAN card, GST certificate, and Aadhaar card of the owner

• Proof of the business location such as electricity or water bills

• Company incorporation documents including MOA and AOA for companies

• LLP agreement and related documents for LLPs

• Types of music to be played (live, recorded, or both)

• Contact details including email and phone numbers 

How to Connect with Compliance Calendar LLP for Music License for Restaurant?

For assistance with obtaining a Music License for Restaurant, applicants can approach Compliance Calendar LLP by following a simple process: 

• Fill out the online inquiry form on the Compliance Calendar LLP website

• A professional consultant from the team will reach out

• All queries will be answered by experts in licensing

• The applicant can track and monitor the progress of their application

• Once processed, deliverables including the license certificate will be provided 

Obtaining a Music License for Restaurant is not just a legal requirement but an important step toward creating a vibrant, customer-friendly atmosphere while respecting the intellectual property of artists. Ensuring proper registration helps avoid penalties and supports the creative industry by compensating music creators.

Email: info@ccoffice.in

Call/Whatsapp at: +91 9988424211

FAQs

Q1. Is a music license mandatory for restaurants in India?

Ans. Yes, any restaurant that plays recorded music—be it via speakers, live bands, or background audio—must obtain a music license. This is required under the Copyright Act, 1957 to ensure the rightful royalties are paid to artists and music producers.

Q2. Which organizations issue music licenses in India for restaurants?

Ans. The main authorities are: 

• PPL (Phonographic Performance Limited) – for sound recordings.

• IPRS (Indian Performing Rights Society) – for lyrics and musical compositions.

  Some restaurants may also need a license from Novex Communications for specific music labels like Zee Music or YRF.

Q3. What happens if a restaurant does not obtain a music license?

Ans. Operating without a music license can lead to legal action, including:

• Monetary penalties,

• Court injunctions to stop music usage, and

• Lawsuits for copyright infringement under the Copyright Act, 1957.

Q4. How much does it cost to get a music license for a restaurant?

Ans. Music license costs vary based on:

• The size and capacity of the restaurant,

• Type of music used (recorded, live, or DJ),

• Frequency of music events.

  Fees generally start from Rs.5,000 annually and can go up significantly for larger venues or regular music performances.

Q5. Do restaurants playing music via streaming platforms also need a license?

Ans. Yes. Even if the music is sourced from platforms like Spotify or YouTube, a public performance license is still required. These platforms' terms of service typically cover personal use, not commercial or public use.

Q6. Is a separate music license needed for live performances in restaurants?

Ans. Yes. In addition to licenses for recorded music, restaurants hosting live bands or singers must get performance rights from IPRS, as it involves the live rendition of copyrighted works.

Q7. How can a restaurant apply for a music license in India?

Ans. The process involves: 

• Visiting the websites of IPRS, PPL, or Novex,

• Filling out the license application with venue details,

• Paying the applicable fee. Once approved, the restaurant receives a license certificate permitting music use legally.