You opened a letter from ASCAP telling you that your business needs a music performance license. The letter may quote a fee, reference statutory damages, or threaten legal action. This is a common experience for small business owners, and the right response depends entirely on your specific situation.
This page explains what the letter means, what the law actually says, and the concrete steps to take before the deadline passes.
Last updated April 2026
The short answer
Do not ignore the letter. ASCAP demand letters are real, and ASCAP does file copyright infringement lawsuits against small businesses. But whether you actually owe money depends on your music source, establishment size, and equipment. Many small businesses qualify for the federal homestyle exemption under 17 USC 110(5) and owe nothing. Others need a license but can resolve the issue for $25–$50/month through a commercial music service — far less than the settlement ASCAP is requesting.
Why — the actual statute
Playing music in a business open to the public is a "public performance" under 17 USC 101. Copyright holders (songwriters, publishers) have the exclusive right to authorize public performances of their works. ASCAP, BMI, and SESAC are the three Performance Rights Organizations (PROs) that collectively license and enforce this right on behalf of hundreds of thousands of copyright holders.
However, Congress carved out the "homestyle exemption" in 17 USC 110(5)(B). If your business plays music from an FCC-licensed broadcast source (over-the-air radio, broadcast TV, basic cable) and meets the size and equipment limits, you are exempt from licensing. Food-and-beverage establishments under 3,750 square feet are exempt. Other businesses under 2,000 square feet are exempt. Larger businesses can still qualify if they stay within the speaker and screen limits: 6 or fewer loudspeakers total, no more than 4 in any one room.
The math
What ASCAP is asking for: Typically $350–$1,500/year for a small-business blanket license, depending on your establishment type and size. But ASCAP is only one of three PROs — you would also need BMI and SESAC licenses.
Total PRO licensing cost: $1,100–$2,200/year for all three PROs for a typical small business.
Commercial background music instead: $25–$50/month ($300–$600/year). Bundles all three PRO licenses. One subscription, one bill, full legal coverage.
Risk of ignoring the letter: $750–$150,000 per song in statutory damages if ASCAP files suit (17 USC 504(c)). Typical small-business settlements range from $3,000 to $30,000.
What to do next
- Run the free self-check to determine whether you qualify for the homestyle exemption, need PRO licenses, or are already covered by an existing music service.
- Document your setup. Fill out a speaker inventory worksheet listing every speaker and screen in your establishment, your total square footage, and your music source. This is your evidence if ASCAP follows up.
- Respond to the letter before the deadline. If you qualify for the exemption, respond in writing citing 17 USC 110(5)(B) with your documentation attached. If you do not qualify, either purchase a license or switch to a commercial music service that bundles licensing. The Music Licensing Audit Kit includes three pre-written response templates.
- If you are currently playing Spotify or other consumer streaming, stop immediately and read why consumer streaming is never covered. Switch to a commercial background music service to resolve the demand and prevent future letters.
Run the full self-check
The self-check tool asks 7 questions about your business and tells you exactly which bucket you fall into — exempt, needs a license, or already covered. Takes about 3 minutes.
Source text
17 USC 504(c)(1) — statutory damages for copyright infringement:
"...the copyright owner may elect...an award of statutory damages for all infringements involved in the action, with respect to any one work...in a sum of not less than $750 or more than $30,000 as the court considers just."
17 USC 504(c)(2) — willful infringement:
"In a case where the copyright owner sustains the burden of proving...that infringement was committed willfully, the court in its discretion may increase the award of statutory damages to a sum of not more than $150,000."
Full statute: 17 USC 504 at Cornell LII