Legal Question in Entertainment Law in California

I'm not sure exactly what medium you will use to broadcast the music (e.g., CD's, Internet streaming, terrestrial radio, satellite radio). These differences are important.

Among the exclusive copyrights conferred by the federal Copyright Act upon the composer of a musical work is the right to "perform the work publicly." This right is implicated when small businesses, such as bars, restaurants, or stores broadcast background music from either the radio, television or from recordings such as compact discs, the Internet, or satellite radio. While the general provisions of the Copyright Act require that these businesses obtain licenses to play background music, there are exemptions, which were expanded when Title II of the federal "Sonny Bono Copyright Term Extension Act" was signed into law in 1998. One such exemption allows bars, cafes, and restaurants, to play terrestrial radio and show television programming, but it does not authorize the playing of recorded or streaming music, such as CDs, through the Internet, or satellite radio without obtaining the necessary licenses. Doing so may result in liability for copyright infringement.

Accordingly, if you plan to play CD's, stream Internet radio, or play satellite radio, you will need to acquire the necessary licenses from the appropriate performing rights organizations.

The best course of action is to obtain permission from the various performance rights holder (i.e., performing rights organizations such as ASCAP or Harry Fox). If they demand a licensing fee, then re-evaluate your position and willingess to negotiate the fee.

The short answer: NO. You cannot play music to the public without a license from the rights holders. ASCAP and BMI are in the business of licensing public performances such as you seem to be describing. Many businesses have an annual, blanket license that covers all music they play.