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Music License For Playing Music In Restaurants

Need a music license, contact our team of experts here at LawyerINC for a quick and hassle-free license registration.

Music is food for our soul, listening to it, is a delight for our ears. Listening to music is quite common during brunch or dinner, be it a fancy restaurant or a small eat away. But, do you know the music which is played there needs licensing. In order to play music at a restaurant or café, one needs to obtain a license.

The Copyright Act in India mandates the Indian Performing Right Society under Section 33(3) for the protection of the rights of the composers and songwriters, etc.

In 2013, a circular was issued by the government stating that a license from the Phonographic Performance Ltd. is required for playing any recorded music and certificate from the Indian Performing Rights Society (IPRS) for holding any live event.

What is a Music License?

Music is an intellectual property of the owner and purchasing a CD or DVD doesn't give us the right to use it anywhere in public. If anyone wants to use it for the public purpose either in the background or in a live performance, they need to get a music license.

Importance of a Music License

Creating music is not an easy task. It requires a lot of effort from everyone from the lyricist, producers, to singers. Everyone does their own part for creating music, so in order to protect the intellectual property rights of the people, we need a music license.

It helps the applicant, as we are only required to apply for a single license and no separate license or permission is needed from other authorities.

It further, helps the owner of the music to keep a track and be vigilant about their music.

Do you need a music licence?

All those who play or communicate pre-recorded music for non-private purposes or in public places or commercial establishments or premises be it acoustic or visual, through Gramophone Records, Music cassette or CDs or in any other form/technology must obtain a prior licence from PPL. The PPL provides annual Background License (If one plays our sound recording on a daily basis) and an Event License (If one plays our sound recording for a particular event for a specified day).

If you are running a business where you need to play recorded music like shop, bar, office, restaurant, etc. or if you are planning to play music in public, you need to get a PPL and a PRS for Music License. If an individual or business entity intends to play recorded music, then it will be added benefit for them, because they can do that as they are now legally complaint.

Time Frame for getting Music License with LawyerINC

License for Playing Music in a Restaurant

  • Playing music in private, public or commercial place is a punishable offence.
  • It is mandatory to get a license before playing music in a restaurant if you pre-recorded music in the form of Gramophone Records, Music cassettes or CDs or Radio or TV or Audio-visual etc.

Following Types of licenses required for playing music in a restaurant

Music is very valuable. It is found everywhere around us. Recordings of music are manufactured, sold and distributed on a large scale throughout the world.

Following Licenses are required if you play music for different purposes

  • Radio License
  • Public Performance (Background) Music License
  • Public Performance (Events) License
  • Public Performance (Temporary Embodiment / Storage / Transfer) License

What is the Copyright Society?

The Copyright Society was established with the sole aim of safeguarding the work of the owners and keeps the work protected.

Advantage of a Copyright Society

  • It helps the Customer get License of every field in one place
  • It helps the owner, as their work is protected and under better vigilance.
  • The copyright society has the power to issue the License to the users
  • It has the power to take steps against the infringement of the copyright of its members.

What is Phonographic Performance Ltd?

  • The Phonographic Performance Ltd. Commonly called as PPL was set up by the Indian Phonographic Industry in 1941. It was formed for administering the broadcasting rights and regulating public performances.
  • It has more than 250 music labels as members.
  • It is the responsibility of PPL to protect the Intellectual Property rights of the music labels. So if anyone who is involved in unauthorized use of pre-recorded music without License then it amounts to infringement of intellectual property.

Planning to play music in a Restaurant-what do you need?

If you have a restaurant or a café and you are planning to play sound-recorded music, register with the Phonographic Performance Limited (PPL). PPL control the Public Performance rights in relation to the sound-recorded music in India.

Music License Required in India for Restaurants

There are two licenses:

  • IPRS (Indian Performing Rights Society) or
  • PPL (Phonographic Performance Limited)

Consequences of not getting the Music Licenses

Playing music without a license is a cognizable and non-bailable offence in India with imprisonment for up to 3 years under section 51 and 63 of the Copyright Act.

Power to grant License

Phonographic Performances Ltd (PPL) is the Apex Licensing Authority of the Indian music industry. It has the power to issue licenses for everyone who is willing to play music in a public place be it restaurant, cafes, eateries etc.

Procedure for getting Music License

  • Draft application in the prescribed format
  • Send application to the PPL pr IPRS
  • Make payment in accordance with The Copyright Act of India.
  • Else, you can avail our service for getting a music license for playing music in your restaurant.

Checklist for Obtaining the License to play music in a Restaurant or Café

  • Specify the audible music range
  • Mention the areas where music is audible such as restaurant/cafe dining areas, bars or kitchens etc.
  • Mention the area where music is audible (In square metres)
  • Number of seating’s in a restaurant or café dining areas
  • A device used for playing the music.
  • In case holding a live event, you have to mention the number of such events and their capacity to accommodate the audience.
  • In case planning to hold a special event, need to specify the number of people, the capacity of the venue, duration etc.
  • In the case of karaoke, mention the number of karaoke sessions to be held in a year

Tariff Charges for Restaurants

Seating Capacity of the Restaurant

Annual Fees for the License

Below 30

Rs. 3500

30-50

Rs. 7500

More than 50

Rs. 10,000

This tariff is applicable only to background music. In case of any event like shows, DJ parties, new year eves etc. we need an event license

When is a Music License not required?

There is no need to have a PRS for Music or PPL License if you want to perform music for educational purpose at an educational establishment, where there is a limited audience of staff and students. Section 34 of the copyright, Designs, and Patents Act 1998 also affects the exception

  • In hospitals and medical day centres
  • Residential house
  • Music played in divine worship (License is needed for playing copyrighted music).
  • Wedding and partnership ceremonies
  • One doesn't need a License for listening to music on their headphones or as background music in one's bedroom, flats and communal area, etc.
  • Informal performances and formal performance of music where no related charge is made to the residents.
  • Music which is outside of its copyright term or is freely licensed.

Conclusion

We here at LawyerINC can assist you with your NSIC registration for availing additional benefits for your MSMEs.

National Small Industries Corporation (NSIC) is a reputed Mini Ratna PSU established in 1955 for the development of the smaller enterprises in India.

The promotion of the products of the MSEs is one of the major objectives of the NSIC. In this competitive field, we need to facilitate the MSEs for marketing their goods or services through a consortium. Accordingly, a scheme was reviewed for promoting the products of the MSEs in 2011 and named “Consortia and Tender Marketing Scheme”.

What is the National Small Industries Corporation?

The NSIC is an undertaking by the Government of India under the Ministry of Micro, Small and Medium Enterprises (MSME). In India, the government is the largest buyer for many products. For the upliftment of the small sector, it launched the Government Stores Purchase Program in 1955-56.

What is the NSIC Registration?

NSIC registers the micro and small enterprises under the Single Point Registration Scheme to permit these enterprises to participate in Government Purchase Programme. The main aim of the NSIC is to promote the production of Small and Micro Entrepreneurs. For this, a scheme was introduced known as The Consortia and Tender Marketing Scheme.

NSIC Registration with LawyerINC

  • Provide the necessary details to our case representative
  • Our business advisors will contact you and inform you about the NSIC Registration
  • Our Professionals will verify the validity of the documents.
  • On Submission of the details, the the NSIC Registration form will be filled.
  • On Completion of the NSIC Registration Form, it will be sent to the concerned authority

Benefits of NSIC Registration

The enterprises registered under the SPR Scheme of NSIC are eligible to avail the benefits of Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012. The registered units can get the listed benefits.

  • Free of cost allotment of tender sets
  • Exemption from payment of earnest money deposit (EMD)
  • Development of the Small scale Industries

    NSIC has the upliftment of the sector reserved 358 items for purchase from SSI.

  • Fair Tender allotments

    MSMEs within price cap of L1+ 15% permitted to supplu upto 20% of the demand by reducing the price to L1.

  • The reserved Quota Benefit

    4% supplies are reserved for MSMEs reserved for SC/STs.

  • Overall progress of the MSMEs

    NSIC launches various services to aid in marketing. tehnology and Finance etc.

Why to get the NSIC Registration?

NSIC helps to increase the proficiency of the MSMEs in India by providing them with customised schemes. It also aims to implement various services related to Marketing, Technology, Finance and other assistance needed for the working of MSMEs.

NSIC helps these enterprises in India by bringing out specific schemes like a Single Point Registration for doing government purchase, marketing support, performance and credit rating scheme for medium endeavours.

Consortia and Tender Marketing Scheme

MSEs in India face many problems for procuring and executing large order, which restrict their growth. Hence, The NSIC has adopted the Consortia approach for the units manufacturing the same products, thereby decreasing the marketing problems of the MSEs.

This scheme will cover the MSEs registered with the NSIC under the Single Point Registration Scheme (SPRS). It would cover MSEs willing to register under the scheme with all the necessary documents.

Features of the Consortia and Tender Marketing Scheme

  • This scheme benefits all the enterprises which are registered with the NSIC through the SPRS. This scheme does not cover the units which are involved in trading activities.
  • It provides a security deposit on a back to back basis.
  • After registering with the scheme, tenders will be issued free of cost.
  • These enterprises which register through this scheme are exempted from paying the EMD.

Eligibility criteria to register the scheme

Eligibility to register for the scheme

NSIC Registration Procedure

  • Filing the application form with requisite fees.
  • A copy of the application is forwarded to the inspection agency for its technical inspection.
  • After the NSIC receives the technical report, it will issue the registration certificate.

Online Process

Below is the procedure for online NSIC Registration-

  • Assessee or the MSE has to fill the form available on NSIC and along with the necessary documents. The Assesse can further contact their nearest NSIC Branch for the required documents. It can be submitted through the scanned copy also.
  • They have to fill the details mentioned in the Registration form and complete the payments and submit the application form.

Offline Mode for NSIC Registration

  • The MSE can download the copy of the NSIC Registration form. They have to submit the form in duplicate accompanied with the fees and the necessary documents to the nearest Zonal/Branch and Sub Office/Extension of NSIC.
  • The application will be forwarded to the inspecting office along with copies of the documents and the payment in the form of draft or pay the order for the inspection charges to inspect the MSE and forward their recommendations.
  • After receiving the inspection report, National Small Industries Corporation will issue the GP Registration Certificate to the MSEs or the things and stores as recommended.

NSIC Registration online

The MSEs who have a Udyog Aadhar Registration are eligible for the registering NSIC online. To get the registration online, these businesses having the Udyog Aadhar enrollment can apply online by presenting an application to an NSIC office.

NSIC Registration certificate

Once the government has approved your registration, they will issue the NSIC Registration Certificate under the Single Point Registration Scheme (Revised), 2003 with a two-year validity. It can also be renewed after the expiry of the validity period.

Registration charges

The registration charges depend on the turnover of the MSE as per their latest audited financial statements. The charges are levied as following-

Turnover of the MSE

Micro Enterprises

Small Enterprises

Less than 1 Crore turnover

Rs. 3000

Rs. 5000

More than 1 Crore turnover

Rs. 3000 and Rs. 5000 for every additional crore.

Rs. 5000 and Rs. 2000 for every additional crore.

However, the maximum fee for registration should not exceed Rs. 1 Lakh.

Documents for NSIC Registration

Documents required for fresh registration

  • The details of the materials mentioning the date of purchase and the original purchase value of the individual machinery.
  • Duplicate of Acknowledgement of the Entrepreneurs Memorandum Part II.
  • Copy of ownership documents of the premises self-attested and lease deed.
  • Proprietor/Partner/Director’s declaration stating the fact whether they have any link with a large scale unit along with the details of such unit (If any).
  • Banker’s report of the applicant mentioning the financial status.
  • Particulars about the raw materials and finished goods.
  • Duplicate of Pan Card
  • Financial Statements like the balance sheet and profit and loss statement.
  • If registered with the DGS & D or any other government organisation, then the copy of the registration certificate.
  • List of all the places where the after sales service facilities are available.
  • The items that need registration with the proper details of the specifications.

Documents needed for Proof of Status during NSIC Registration for-

Partnership Firm

  • POA in favour of one partner
  • Partnership deed
  • The Form-A from the Registrar of the Firms showing the name of the partner.

Private Limited Companies

  • Duly authenticated Certificate of Incorporation
  • Duly authenticated Memorandum and Articles of Association
  • The names of sitting Directors, along with the address and the individual shareholdings
  • Board resolution in favour of the signatory of the application and documents

Co-operative Societies

  • The Certificate of Registration of Societies
  • Bye-laws or regulations of the co-operative society
  • Name of members, along with their address and individual shareholding
  • A certificate from the Registrar of the Societies mentioning that the society is still functional
  • Particulars related to the authorised share capital and subscribed share capital
  • Particulars related to the movable and immovable properties which are owned by the co-operative society.
  • The Co-operative society’s resolution for seeking the Registration under the government purchase programme and the resolution in favour of the signatory of the application and documents.

Documents required for Renewal of Registration

  • The Original GP Registration Certificate
  • The duplicate copy of the Acknowledgement of Entrepreneurs Memorandum Part-II
  • List of major government orders executed during the last two years
  • Last three years audited balance sheet in duplicate signed by the authorised with the seal.
  • Annexure-C of GP Application form duly signed by a Chartered Accountant
  • List of addition/deletion to the plant & machinery after the initial registration
  • Annexure-D & E duly signed by MSE

Why LawyerINC?

  • Free consultation or enquiry
  • Expert guidance throughout the registration
  • Assistance in filing the registration
  • We will get in touch with you through experts who are well versed with the registration procedure.

Frequently Asked Questions

  • 1. Is the service industry eligible to avail the benefit of the Consortia and Tender Marketing Scheme?

    Yes, the service industries are eligible to avail the benefits of the Consortia and Tender marketing Scheme, as they are treated as a manufacturing industry.

  • 2. Are the Traders eligible to be registered under the Scheme?

    No, the traders don’t have the authority to register for this scheme.

  • 3. Under the SPRS, what is the monetary limit fixed in provisional registration?

    The monetary limit fixed in the provisional registration is Rs 5 lakhs.

  • 4. Does LawyerINC provide this service in my town?

    Yes, LawyerINC is an online platform where you can find CA, CS and law professionals. All you need to do is post a query with us and follow the procedure afterwards.

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