In what country? In some nations, yes. For example, USA has a system set up via ASCAP. Check their link (if you are in USA); http://www.ascap.com/index.html

Laws re: "public performance rights" vary by country right along with all the other IP legalities. The variables in your example are: -- composer (arranged the music) -- songwriter (wrote the lyrics) -- performer or label (a specific performance of the above) -- your desire for "public performance" in a commercial place of business. (ie background music in your restaurant) In the USA, you need to get a license for "public performance rights". Two of the biggest concerns to do that with are: -- BMI -- ASCAP They save you from having to work out licensing with each publisher and each label individually - and can work out deals for multiple performances (in their catalogs). I believe they represent about 4 million songs .. each. There are several exceptions re: public performances, but since this isn't one of them. Some examples where you would definately need licensing (again, in the US .. check local laws if in a different country) .. are: -- music you want to play during your commercial exercising class in a gym -- music you want to play during your podcast -- music you want to play as background in your place of business (restaurant, bowling alley, etc) -- skating rinks -- web sites -- local festival or event -- lots of other uses! (ASCAP and BMI have several different kinds of forms to determine licensing fees for your intended uses.) Tip of the iceberg, but the most important "take away bit of info" from this is: --- there are copyrights in place in 3 areas: composer, songwriter, a specific performance --- if you aren't in one of the "exception areas" (and you're not when it's in a commercial venue and some others) .. you'll have to negotiate and pay for .. public performance rights via license agreements.

no you don't need to infact by playing those songs you are doing the creator/producers a free publicity of theirs songs...

http://seattletimes.nwsource.com/html/businesstechnology/2003815486_royalty01.html

In the US, technically you do for any "public performance" of copyrighted works. In practice this is rarely enforced; only large chain restaurants are particularly concerned and consequently they pay for "muzac" or other licensed recordings. It would become a bigger issue if you for instance had a television commercial made for your restaurant and either used such music as the soundtrack for the commercial or if the music could be discerned from a live recording within the restaurant.