The hidden dangers of using YouTube and unlicensed karaoke music in your karaoke rooms

Jason Dydynski -

Running a karaoke room business is a great way to bring people together and boost profits. But if you’re using unlicensed music sources like YouTube or unofficial karaoke providers, you could be putting your entire business at risk. Many venue owners don’t realize that these free options can lead to serious legal trouble and hefty fines.

And the risks don’t stop there. Unlicensed karaoke can also damage your reputation, frustrate guests with poor-quality songs, and hurt your bottom line.

Here's what every karaoke room owner needs to know about music licensing and why proper licensing is essential for your business.

What is music licensing and why does it matter?

Music licensing is the legal permission required to play copyrighted music in a business setting — like a karaoke room, bar, hotel, or club. If you’re using music in a public or commercial space, you’re expected to pay licensing fees to the people who created it: the songwriters, publishers, performers, and producers.

Group singing in the karaoke room at All Star Lanes.

In most countries, this includes:

  • The music publisher – the company that owns or manages the song rights
  • A performance rights organization (PRO) – the organization that collects royalties for the artists
  • The karaoke content producer – the company that creates the karaoke version of the track

Every country or region has different PROs (Performance Rights Organizations). For example:

These organizations monitor and enforce how music is used, and they have the legal authority to fine or sue businesses that use unlicensed music.

If you’re using karaoke tracks from YouTube or pirated downloads, you could be breaking copyright law. And the penalties are serious — ranging from large fines to lawsuits, depending on local regulations.

Karaoke track production taking place.

The cost of using unlicensed music

The financial penalties for using unlicensed music are severe. With each musical composition used illegally, the venue will be fined between $750 to $30,000. These fines apply to each song played without a license, meaning costs can quickly add up to hundreds of thousands of dollars.

Even if you claim the infringement was accidental, you could face a fine of not less than $200 per song. For repeat offenses or willful infringement, the largest fine is $150,000 per song.

Fully licensed karaoke fun at Austin Karaoke.

Karaoke venues facing lawsuits and fines

The risks are not just theoretical — many karaoke venues have faced real consequences.

Las Vegas nightclub hit hard

In 2023, a karaoke room bar in Las Vegas, was sued for copyright infringement by multiple music publishers. The lawsuit claimed the bar hosted karaoke using songs that were not properly licensed, even after receiving multiple warnings. The owners were sued for up to $150,000 per song.

Pirate's Den, Cincinnati

Pirate's Den in Cincinnati, Ohio learned the hard way that even playing a single popular song without proper licensing can be devastating. ASCAP launched a $90,000 lawsuit against the bar for playing Michael Jackson's 'Rock With You' without authorization.

Carey-On Saloon, Colorado Springs

The Carey-On Saloon in Colorado Springs went out of business in 2014 when it was hit with a $21,000 fine. Carey-On Saloon subscribed to the American Society of Composers, Authors and Publishers (ASCAP) and Society of European Stage Authors and Composers (SESAC) but not BMI, and unfortunately for the bar, several patrons sang Toby Keith songs while a BMI scout was present.

Blue Moose Bar & Grill, Topeka

In 2023, The Blue Moose Bar & Grill in Topeka was sued for two of the songs — "Play that Funky Music," written by Rob Parissi and "Hit Me with Your Best Shot," written by Edward Schartz — they played without the appropriate ASCAP licensing. The lawsuit said ASCAP is seeking statutory damages between $750-$30,000 for the infringements, Blue Moose to be restrained permanently from using music from ASCAP's members and asks Blue Moose to pay legal fees.

A karaoke venue in Taiyuan, Shanxi province was shut down by court order after being sued for playing over 30 songs without paying royalties. The court ordered damages of ¥2,500 (about $370 USD) per song. When the business ignored the ruling, the venue was forcibly closed.

Melbourne bars fined nearly $200,000 AUD

Two CBD bars in Melbourne, Hairy Little Sista and Hairy Canary, were found guilty of playing recorded music without proper licensing from PPCA and APRA AMCOS. They were ordered to pay $185,529 AUD in damages plus legal costs.

US nationwide enforcement actions

The American Society of Composers, Authors and Publishers (ASCAP) announced that it has filed 13 separate copyright infringement actions against bars and restaurants nationwide, arising out of the unauthorized public performance of its members' copyrighted songs in 2024 alone.

ASCAP Executive Vice President, Head of Licensing Stephanie Ruyle commented:

Businesses use music because it helps to create an ambiance that brings customers back and makes them stay longer. Hundreds of thousands of well-run businesses across the nation recognize this and understand that compensating the songwriters who created it is the lawful and right thing to do. However, each of the establishments sued today has decided to use music without paying its creators. By filing these actions, ASCAP is standing up for songwriters whose music is essential to those businesses and their customers.

These cases show that PROs all around the world actively monitor venues and take legal action when they find unlicensed music use.

Why YouTube karaoke isn’t safe for your business

Many small venue owners think YouTube is a quick and free way to run karaoke. But there are several major problems:

1. YouTube is not licensed for public commercial use

Just because a song is on YouTube doesn’t mean it’s legal to use it in a venue. YouTube’s licensing agreements only cover personal, non-commercial use. If you use YouTube in a business setting, you’re violating their terms and potentially copyright law too.

2. Poor quality and inconsistent tracks

YouTube karaoke tracks are made by anyone — meaning you get low-quality audio, lyrics that are out of sync, or videos that stop working suddenly due to copyright takedowns.

3. Ads and distractions

Imagine a group hyped to sing their favorite song, only to get hit with a loud ad or a low-resolution video. It kills the vibe and reflects poorly on your venue.

4. No control or updates

YouTube libraries are unpredictable. Songs get deleted, blocked, or restricted in your region with no warning — your karaoke experience can break at any time.

Keep the party going by choosing licensed karaoke software.

Other issues with unlicensed karaoke software

Unlicensed karaoke providers offer no protection. Some karaoke providers offer large song libraries at very low prices, but they often don't have proper licensing agreements. When you use these services, you're still responsible for any copyright violations. If a PRO finds unlicensed music in your venue, they will come after your business, not the provider.

Even beyond YouTube, using karaoke software or discs from unverified sources can come with risks:

  • Inconsistent song quality and availability - Unlicensed platforms often feature poor audio quality, missing lyrics, and uneven volume levels between tracks. Songs can disappear without warning, leaving you scrambling during customer sessions and ruin the customer experience.
  • Unreliable service - These services tend to experience frequent downtime, slow loading, and bugs that interrupt the flow of entertainment. Without reliable performance, your venue’s reputation and customer satisfaction can suffer.
  • No support or updates - When something breaks, you’re on your own. Unlicensed providers typically offer no customer support or regular updates, meaning you miss out on new features or new hits most customers will be expecting.
  • No business or legal protection - Unlicensed use exposes your venue to serious legal risk, including fines, lawsuits, and copyright audits. Without a verified licensing agreement, there’s no guarantee the content is legally cleared for commercial use — or that the service will even be there tomorrow.

Steps to protect your karaoke business

Don't wait until you receive a lawsuit to take music licensing seriously. The cost of proper licensing is much less than the potential fines and legal fees from using unlicensed music. Take action now to protect your business:

1. Stop using unlicensed sources immediately. This includes YouTube, unlicensed karaoke apps, and questionable providers.

2. Choose a properly licensed service. Look for providers that clearly state they have PRO licenses.

3. Keep licensing documentation. Save all licensing agreements and receipts.

4. Train your staff. Make sure everyone understands the importance of using only licensed music.

5. Regular compliance checks. Periodically review your music sources to ensure continued compliance.

Licensed karaoke service, such as Singa, is built for business settings.

Why Singa Business is a safe, smart choice

Singa Business is a fully licensed karaoke solution made specifically for venues like yours. With Singa, you can stay 100% legal — and offer a world-class karaoke experience your guests will love.

Here’s why venue owners around the world trust Singa:

  • Licensed and legal - All tracks are properly licensed for commercial use through performance rights organizations.
  • Massive music library - Over 100,000 high-quality karaoke tracks covering global hits, local favorites, and multiple languages. New songs are added regularly.
  • No ads or random interruptions - Give your guests a smooth, professional karaoke experience from start to finish.
  • Professional-grade quality - Crisp audio, accurate lyrics, consistent volume levels, and ad-free playback for a premium karaoke experience.
  • Reliable and easy-to-use - Singa is cloud-based and works on smart devices, TVs, and tablets. No discs, no downloads — just press play. 99.9% uptime guaranteed.
  • Built for business - Includes tools for multi-room management, custom branding, detailed usage reporting, and flexible pricing.
  • Customer support and updates included - We take care of the tech, so you can focus on running your business.

Whether you run a karaoke bar, hotel, cruise ship, or private rooms, Singa protects your business and keeps customers coming back.

Private karaoke room at The Fox, UK.

Final thoughts: don’t gamble with karaoke licensing

Using YouTube or unlicensed music in your karaoke room is not worth the risk. The potential fines can be devastating to your business, and the operational problems can drive away customers. Remember: the cost of proper licensing is always less than the cost of legal trouble.

By choosing a properly licensed karaoke service like Singa Business, you protect your investment and ensure your customers have the best possible experience.

👉 Learn more at singa.com/business