One of the most important ways in which songwriters, music publishers, performers and the producers of sound recordings are able to earn income is through the royalties paid on the public performance of their work. Because of the effort made in the creation process, the owners of copyright are granted certain exclusive economic rights so that they are compensated for the use of their music and so in order to use their work, a licence is necessary. This is especially so when you consider that the use of music results in a number of benefits as it is used either to make money (discos, concerts), for entertainment (hotels) or to provide ambience (shops, offices, restaurants).
For copyright purposes, a performance in public means any performance outside the normal domestic circle and includes recorded and live performances in hotels, restaurants and cinemas, those given to audiences restricted to the members of a club or local institute, as well as to workers in a factory. It does not matter whether the music use is for commercial or non-commercial reasons although there will be a difference in the tariffs applied. Additionally, there are some exceptions for charitable organisations.