Music License for Restaurant- Overview

Every restaurant requires a music license to operate. This would be if the restaurant is providing live music or pre-recorded music. Music is considered as an intangible right which is present under the provisions of the Copyrights Act, 1957. Compliance has to be maintained by the restaurant in securing this form of license.

The main regulatory authority for music license for a restaurant is the IPRS. Apart from this, there is a PPL. Hence the restaurateur must understand which form of license would suit his requirements. If the music is publicly performed then a license would also be required. License would be required even if the music is pre-recorded.

Types of Music License for Restaurant

Recorded Music License-

Any recorded music if played in a restaurant would require having a specific license. Usually these forms of licences are issued by the Phonographic Performance Limited (PPL). The PPL is an independent and autonomous organisation that provides music license as per the requirements of the restaurant. For a restaurant music license such registration is mandatory.

PPL or Public Performance Music License-

Another form of music license required for a restaurant is the PPL or the Public Performance Music License. This form of license is usually issued to restaurants that conduct live performance. The Indian Performing Rights Society (IPRS) issues such form of licenses. For a restaurant music license liaising with such authority is mandatory.

Which types of establishments require the music License (Music License for Restaurant)?

The following establishments require music license:

What are the benefits of music license for restaurant?

The applicant can receive the following benefits by taking the music license for restaurant:

Popularity-

By taking the music license a restaurant would be more popular in the eyes of the public. Music license can be in the form of recorded form or the form of a live performance. Both the above forms of music require a particular license. Public are more likely to go to a restaurant which has music.

Increase Reputation-

Any applicant that goes for music license for the restaurant would be reputed. The restaurant with a music license would be reputed in the city.

Compliance-

By securing the music license, the restaurant would be compliant with the requirements of the government. Apart from this, a restaurant that does not have a license would have some form of penalty under the Copyrights Act, 1957.

What are the main objectives of securing music license for a restaurant?

Some of the main objectives of securing music license for a restraint are:

To Protect Authors Rights-

One of the main priorities of securing the music license for a restaurant is to protect the rights of the original author of the music. The meaning of author is present under the provisions of the Copyright Act, 1957. The author is also known as the composer. The principle of originality would apply to any form of songs (pre-recorded or played live). Hence there is some form of right or copyright with the original work of the author. To protect the original work, the applicant for music license for restaurant would have to make an application to the PPL or the IPRS.

Comply with the Law-

If the restaurant needs a music license but goes ahead with playing songs without a license, then the restaurant would be breaching the provisions of the Copyrights Act, 1957. This would be a breach of intellectual property rights of the original composer of music. There are stringent penalties for not complying with the law.

Procedure on Registration of Music License for Restaurant

The following steps have to be considered for Music License for Restaurant:

Go to the Official Website-

In the first step, the applicant has to either go to the IPRS website or the PPL website. The IPRS website would issue music license restaurants, bars and hotels. The link to the official website is https://www.iprs.org/ . If the applicant wants to go through the PPL then the following website should be considered https://www.pplindia.org/.

Check the License Required-

In the second step, the applicant has to check the form of license required for the restaurant. Whether the license is based on pre-recorded music or a live performance. If the license required is live performance, then the applicant has to go for the live performance. Information related to the particulars can be provided by the applicant by login in the website by registering details.

Consider if the License is a Pre-recorded License or a PPL License-

The applicant has to consider if the license required is recorded or PPL license.

Provide Information-

If the applicant is applying for Music Works and Accompanying Literary Works within the premises, then all the details related to the restaurant must be provided for music license in the premises. The following information must be provided for music license in the premises:

• Location of the premises.
• Type of music played in the premises.
• Information on the business.
• Public Performance Details of the Premises.
• Information such as contact details and emails has to be provided.
• GSTIN number, PAN number and TAN.
• Fee payable along with the license must be provided.

Read the Tariff which is applicable (Restaurant Tariff)-

In the below link https://www.iprs.org/licences/ the applicant has to click on Licensing Form. Here all the information and particulars have to be provided by the applicant which is in Step 4 of the above procedure. Under the Public Performance Tab, the applicant would receive a drop down menu. In the drop down menu the applicant has to click on the ‘Restaurants, Bars, Lunch Homes, Coffee Shops, Dining Rooms, and Eating Houses etc’. Then the applicant would be presented with a form which provides the general conditions of the above license and the tariff applicable for music license for restaurant. The following conditions have to be complied by the applicant:

• The applicant must follow general Conditions- The tariff and other conditions.
• The following rates of royalty would be applicable for the music license for restaurant:

      Metropolitan Cities- Rs. 10,000/-

      Non-Metropolitan Cities- Rs. 5000/-

• Standard deduction of the license fee at the rate of 20% would be deducted for promotion of artists.
• All the above rules related to the applicability of the tariff have to be adhered by the restaurant.
• Any form of music which is performed through a specific device is known as mechanical music.
• This would be applicable to background music and other forms of music as required.

Submit Application-

Once the application is completed the same has to be submitted to the authority. The application can be submitted online through the portal. The applicant would receive an OTP for the same while submitting the application. The application would be vetted by the competent authority. If the particular related to the application are fine, then the letter of registration or the introduction letter will be issued to the applicant. This introduction letter signifies that the application is accepted and the music license for restaurant would be provided.

What are the factors that determine the cost of the music license for restaurant?

The following factors have to be considered for the cost of music license for the restaurant:

Type of Place-

If the place where the restaurant is going to be established is large, then the fees for the music license would be higher.

Number of Hours-

The timing of opening the restaurant would also be applicable for the music license for restaurant. If the restaurant is open from 8 Am in the morning till 11 PM in the night, then the cost would obviously be more.

Number of Songs Played-

If more amount of songs are played in the restaurant, the cost of the music license would be higher.

Capacity-

If the venue is large then higher fee would be charged for the music license, when compared to a smaller venue.

Documents Required for Music License for restaurant

The following documents are required for music license for restaurant:

• Information on the restaurant
• Identification Documentation- PAN Card, GST Information, Aadhaar Card of the applicant
• Information related to the registered office or premises of the business
• Company Formation Documents- Such as Certificate of Incorporation, Memorandum of Association and Articles of Association
• LLP documents- Limited Liability Partnership Deed, Partnership Documents
• Types of Music which will be played in the restaurant
• Address Proof or any form of utility bills for the establishment such as Electricity or Water Bills
• Business Information Details

How to reach Enterslice for Music License for Restaurant

• Fill up the online form.
• One of our professionals will get back to you.
• All queries can be addressed to one of our experienced professionals.
• Track and monitor the progress of your application.
• Get Deliverables