What Is a Blanket License?

A blanket license is a crucial agreement for any music venue, granting them permission to publicly perform a vast catalog of copyrighted musical works. Instead of licensing each song individually, which would be impractical and burdensome, this license covers millions of compositions represented by a specific Performing Rights Organization (PRO).

Understanding Performing Rights Organizations (PROs)

PROs like ASCAP, BMI, and SESAC are essential entities in the music industry. They act as intermediaries, representing songwriters, composers, and publishers, collecting royalties on their behalf. When music is publicly performed—be it live, streamed, or played through a DJ set—these organizations ensure creators are compensated fairly for their work.

How Music Venues Pay PROs

Music venues obtain licenses from each major PRO whose music they intend to use. This typically involves an annual fee based on various factors: venue size, occupancy, the type and frequency of music played, and whether live or recorded music is featured. These collected fees are then distributed by the PROs to their affiliated artists and publishers as performance royalties, ensuring creators are paid when their music is enjoyed publicly.

A blanket license provides music venues with legal permission to perform a wide array of copyrighted music by paying annual fees directly to Performing Rights Organizations (PROs).