public place without obtaining a license for the musical works. A community clubhouse is for the purposes of this topic most likely a “public” space. However, section 110 (5) (B) of the Copyright Act contains exceptions for businesses playing music over the radio or using a TV if you don’t charge customers to hear the music.


Generally, if your business is not a “food service or drinking establishment” and has less than 2,000 gross square feet of space or is a “food service or drinking establishment” and has less than 3,750 square feet in space, you don’t need to pay to use music.


If your business is larger than the above limits, to use a TV (with stations licensed by the FCC) or radio, and your business includes ONE of the following, you need to pay to use music:


For Television: ` More than 4 TVs. ` More than 1 TV in any one room. ` Any of the TVs is larger than 55” when measured diagonally from corner to corner.


` If the audio is connected to: ` More than 6 total loudspeakers. ` More than 4 loudspeakers in any one room or connected outdoor space.


` If there is any direct charge. ` The transmission or retransmission is further transmitted beyond your establishment.


For Radio: ` More than 6 total loudspeakers. ` More than 4 loudspeakers are in any one


room or connected outdoor space.


` If there is any direct charge. ` The transmission or retransmission is further transmitted beyond your establishment.


Another exception is in section 110 (5)(A) of the Copyright Act, which allows transmission of music via “a single receiving apparatus of a kind commonly used in private homes.” This exemption only applies if no direct charge is made to see or hear the transmission and the transmission, once received, is not further transmitted to the public.


Based on the foregoing, if any of these exceptions applies, you have an argument that you do not need a license to operate the clubhouse TV. Once you are holding social events and playing music, though, you will need one.


I tend to err on the side of caution. Better safe (less $$) than sorry (lots more $$$$$$$).


Decisions, Decisions... So, now that all that is out the way, the choice becomes yours. For me, since I also like to be paid for my work, I


pay for the licenses needed to play music, watch TV and play movies in our community center, social events and in our office. I tend to err on the side of caution. Better safe (less $$) than sorry (lots more $$$$$$$).


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Pay $ to Play vs. Play & Pay $$$ These rules are detailed in the Copyright Act, as amended, Title 17 of the United States Code, which can be found here: https://www.copyright.gov/title17/ ` According to the Copyright Act, only the copyright owner holds the exclusive right, among others, “to perform the copyrighted work publicly.” (Section 106)


` The rental or purchase of a copyrighted work does not bear the right to perform the copyrighted work publicly. (Section 202)


` Copyrighted works may be shown without a separate license in the home to “a normal circle of family and its social acquaintances” (Section 101) because such showings are not considered “public.”


` Copyrighted works may be shown without a license to nonprofit educational institutions for “face-to-face teaching activities” because the law provides a limited exception for such showings. (Section 110(1))


` All other public performances of copyrighted works are illegal unless they have been authorized by license. Even “performances in ‘semipublic’ places such as clubs, lodges, factories, summer camps, and schools are ‘public performances’ subject to copyright control.” (Senate Report No. 94-473, page 60; House Report No. 94-1476, page 64)


` Both for-profit organizations and nonprofit institutions must secure a license to show copyrighted works, regardless of whether an admission fee is charged. (Senate Report No. 94-473, page 59; House Report No. 94-1476, page 62)


` Noncompliance with the Copyright Act is considered infringement and carries significant penalties for both the exhibitor and those contributing to the infringing conduct. Unlicensed public performances are federal crimes and can be subject to a $150,000 penalty per exhibition and other penalties. (Sections 502-506)


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