"How licensing works
With an ASCAP license, owners then possess the legal right to use any and all of the more than 18 million works protected by ASCAP, according to Wagener.
The necessity of an ASCAP license extends to nightclubs, bars, restaurants and any venue where music will be played. However, failure to obtain a license results in legal fines whose financial detriments can cost triple or more than the yearly fee for an ASCAP license.
In a press release on Oct. 18, it was disclosed that for average restaurants and bars, licensing fees amount to an average of less than $2 per day. Licensing fees occur yearly and are determined based on an establishment's following characteristics:
- Size/capacity (the larger the venue, the more valuable the performance is and the higher the licensing fee)
- Type of music being performed (differentiated by live music, background music, karaoke, etc)
- Occurrence of live music (distinguished by its playing three nights or less and four nights or more)"
