You have probably heard of ASCAP and BMI. But then someone mentions SESAC and you wonder: is this another organization I need to pay? Do I need three separate licenses just to play music in my shop? The answer depends on whether you qualify for the homestyle exemption — and if you do not, yes, you technically need all three.
This page explains what SESAC is, how it differs from ASCAP and BMI, and exactly when a small business needs a SESAC license.
Last updated April 2026
The short answer
If your business qualifies for the homestyle exemption, you do not need a SESAC license (or an ASCAP or BMI license). If your business does not qualify for the exemption and you play music publicly, then yes — you technically need licenses from all three PROs: ASCAP, BMI, and SESAC. Each one represents different songwriters, and you cannot know in advance which songs belong to which PRO. Skipping SESAC while paying ASCAP and BMI still leaves you exposed to statutory damages of $750 to $150,000 per song for any SESAC-licensed track that plays in your business.
What is SESAC?
SESAC is a performing rights organization (PRO), just like ASCAP and BMI. The three of them collectively represent nearly all commercially released music in the United States. Here is how they differ:
- ASCAP — the largest PRO. Represents about 900,000 members. Open membership; any songwriter can join.
- BMI — the second largest. Represents about 1.4 million songwriters and publishers. Also open membership.
- SESAC — the smallest of the three. Unlike ASCAP and BMI, SESAC is invitation-only and privately owned. It represents a smaller but significant catalog, including artists like Bob Dylan, Neil Diamond, and Adele.
All three PROs have the same legal power: they can sue businesses that publicly perform their members' music without a license. The fact that SESAC is smaller does not reduce your legal risk. If even one SESAC song plays in your business without a license, you are exposed.
Why — the actual statute
Federal copyright law gives copyright holders the exclusive right to publicly perform their works (17 USC 106(4)). PROs like SESAC act as agents for those copyright holders. When your business plays music publicly, it needs permission from the copyright holder — which in practice means a license from the PRO that represents that songwriter.
The homestyle exemption in 17 USC 110(5)(B) exempts certain small businesses from this requirement. The exemption applies to all PROs equally — if you qualify, you are exempt from ASCAP, BMI, and SESAC. If you do not qualify, you need all three.
The math
SESAC license alone: Roughly $400–$800 per year for a small business, depending on your establishment type and size.
All three PROs (ASCAP + BMI + SESAC): Approximately $1,100–$2,200 per year total.
Commercial background music service: $200–$600 per year. One subscription bundles licensing for all three PROs. No separate paperwork with ASCAP, BMI, or SESAC.
Risk of skipping SESAC: Same as skipping any PRO — $750–$150,000 per song in statutory damages (17 USC 504(c)).
What to do next
- Run the free self-check to find out if your business qualifies for the homestyle exemption. If it does, you do not need any PRO licenses — SESAC included.
- If you are not exempt, the simplest option is a commercial background music service ($200–$600/year) that bundles all PRO licensing into one payment. You will never have to deal with ASCAP, BMI, or SESAC individually.
- If you prefer to license directly, contact each PRO separately: ASCAP, BMI, and SESAC. Do not skip SESAC just because it is smaller — the legal risk is identical.
- If you already have a demand letter from any PRO, use the response templates in the Music Licensing Audit Kit to respond correctly before the deadline.
Run the full self-check
The fastest way to find out if you need a SESAC license is to check whether the homestyle exemption covers your business. The free self-check tool walks you through 7 questions and gives you a clear answer.
Source text
17 USC 106(4) — exclusive right of public performance:
"...the owner of copyright under this title has the exclusive rights to do and to authorize any of the following: ... (4) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works, to perform the copyrighted work publicly..."
This right is what all three PROs — ASCAP, BMI, and SESAC — enforce on behalf of their member songwriters and publishers. The homestyle exemption in 17 USC 110(5) is the only statutory carve-out for small businesses.
Full statute: 17 USC 106 at Cornell LII | 17 USC 110 at Cornell LII