Copyright Law's "Small Business Exception": Public Performance Exemptions for Certain Establishments

Publication Date: December 2003

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Law and ethics

Type:

Abstract:

The Copyright Act grants specific exclusive rights to the owners of copyrighted works. Among the rights conferred upon the composer of a musical work is the authority to "perform the work publicly." This right is implicated when small businesses, including bars, cafes, and restaurants broadcast background music from either the radio, television or from recordings such as compact discs.

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 "Sonny Bono Copyright Term Extension Act" was signed into law. These exemptions allow bars, cafes, and restaurants, to play the radio and show television programing, but do not authorize the playing of recorded music. Research does not uncover any other provisions that would definitively immunize public performances of audio tapes and musical CDs in small business establishments from possible liability for copyright infringement.

This report will be updated as circumstances warrant.