|Music Licensing Reform|
Information courtesy of the National Restaurant Association
How Does the Exemption Affect You & Your Business?
Restaurants under 3,750 gross square feet (not counting the parking lot) are exempt from paying royalties on radio and television music only.Restaurants over 3,750 gross square feet (not counting the parking lot) may also be exempt: (1) if they play no more than 4 televisions, each measuring up to 55" diagonally (no more than 1 per room), with no more than six speakers total with no more than four speakers per room, or (2) if they play radios that have no more than six speakers total, with no more than four speakers per room.For restaurants to be eligible for the exemption, they must not charge a cover fee to see the television or listen to the radio
Retailers also receive an exemption under the new law. Retailers under 2,000 gross square feet (not counting the parking lot) will receive the same equipment exemption as restaurant owners (see above).RATE DISPUTE MECHANISMThe law (effective Jan. 25, 1999) allows for disputes to be heard in 12 circuits throughout the United States.In New York State, all disputes are heard in the 2nd Circuit Court located in New York City.