A letter from BMI just showed up at your restaurant. It says you owe licensing fees, mentions federal copyright law, and gives you a deadline. Your stomach drops. Before you panic, throw it away, or write a check, read this page. Most restaurant owners have more options than BMI's letter suggests.
This page explains what a BMI demand letter actually is, what BMI can and cannot do, and the step-by-step way to respond correctly.
Last updated April 2026
The short answer
Do not ignore the letter, but do not pay immediately either. BMI's demand letter is not a lawsuit. It is a notice that BMI believes your restaurant is playing music publicly without a BMI license. If they are right, you face statutory damages of $750 to $150,000 per song under 17 USC 504(c). But many restaurants qualify for the homestyle exemption under 17 USC 110(5)(B) and do not owe BMI anything. Your first step is to figure out whether you are actually exempt.
Why — the actual statute
Playing music in a restaurant open to the public is a "public performance" under 17 USC 106(4). BMI represents songwriters and publishers. If your restaurant publicly performs songs in BMI's catalog without a license, BMI has the legal right to pursue damages.
However, Congress carved out an exemption specifically for small businesses. Under 17 USC 110(5)(B), a restaurant or bar is exempt from licensing if it meets all of these conditions:
- Square footage: The establishment is under 3,750 square feet total (not counting parking). For food and drink establishments specifically, the limit is 2,000 square feet.
- Source: The music comes from a licensed broadcast — over-the-air radio, broadcast TV, or basic cable. Streaming services like Spotify do not qualify.
- Speakers: No more than 6 loudspeakers, with a maximum of 4 in any one room.
- TVs: No more than 4 TVs (max 55-inch diagonal each), with a maximum of 1 per room.
- No cover charge: You do not charge patrons to listen.
- No retransmission: You are not rebroadcasting the signal outside your premises.
If your restaurant fits all of those conditions, the homestyle exemption applies and you do not need a BMI license. That is your defense.
The math
BMI license for a restaurant: Roughly $400–$800 per year depending on seating capacity and whether you have live or recorded music.
Full PRO coverage (ASCAP + BMI + SESAC): Approximately $1,100–$2,200 per year total.
Commercial background music service: $200–$600 per year. Bundles all PRO licensing into one subscription — no separate paperwork with each PRO.
Risk of ignoring the letter: $750–$150,000 per song in statutory damages (17 USC 504(c)). A typical BMI settlement demand is $3,000–$8,000. One lawsuit costs more than a decade of licensing.
What to do next
- Run the free self-check to find out if your restaurant qualifies for the homestyle exemption. You will need your square footage, speaker count, and music source.
- Document your setup. Measure your dining area and any adjacent spaces. Count your speakers and TVs. Take photos. If you claim the homestyle exemption, this is your evidence.
- Respond to the letter before the deadline. If you are exempt, your response should cite 17 USC 110(5)(B) and state the facts that qualify you. If you are not exempt, contact BMI to negotiate a license before they escalate.
- Consider a commercial background music service if your restaurant does not qualify for the exemption. From about $200 per year, a BGM service bundles all PRO licensing and eliminates the issue entirely.
Run the full self-check
Not sure whether your restaurant is exempt? The free self-check tool walks you through 7 questions about your space, your speakers, and your music source. At the end, you will know exactly where you stand.
Source text
17 USC 110(5)(B) — the business exemption for food-service and drinking establishments:
"...a performance or display of a nondramatic musical work, by communication of a transmission embodying such performance or display, by a food service or drinking establishment... if— (I) the establishment in which the communication occurs has less than 3,750 gross square feet of space (excluding space used for customer parking and for no other purpose)..."
For food-service and drinking establishments, the operative square footage threshold is 3,750 sq ft in the general statutory text, but the commonly applied standard for food and drink establishments is 2,000 sq ft under subparagraph (B)(ii), with the 3,750 sq ft threshold applying to other types of establishments.
Full statute: 17 USC 110 at Cornell LII