According to US Copyright Law, if you operate a business using music, you have a responsibility to obtain permission from the copyright owner before that copyrighted music can be performed. With some exceptions, most music we hear is copyrighted. In a business setting, we typically hear that music via a “public performance.” That’s why the music license needed is called a “public performance license”.
Don’t be confused by the word “performance.” in the term “Public Performance License”. We often think of performance in the narrow context of live music, but it’s not just about that. U.S. Copyright Law considers this word more broadly. Title 17 U.S. Code § 101 states, “To “perform” a work means to recite, render, play, dance, or act it, either directly or by means of any device or process.” So instead, consider “performance” to also include background music in a hotel lobby, music streamed from a website or app, or music playing from a TV or radio. If you can hear music, a performance is occurring regardless of whether the source is a live band, digital, vinyl or anything in between.
So, what does “public” mean under the Copyright Law for “Public Performance License”? The law defines public as follows: “To perform or display a work “publicly” means: to perform or display it at a place open to the public or at any place where a substantial number of persons outside of a normal circle of a family and its social acquaintances is gathered.” In short, music being played to more than a family and its social acquaintances, such as at a restaurant, hotel, health club or many other types of locations, is a public performance and requires a public performance license.