You've found the band, agreed the fee and set the date - and then the question comes up: do you also have to pay KODA? The short answer is usually yes, once the music is performed in public. But a few simple rules decide when, and there's a common misunderstanding that leads many organisers to think they've already paid.
This guide is written for you if you're organising an event and want to get it right without wading through legal clauses. We start with an overview where you can find your own situation, explain the difference between KODA and Gramex, clear up the two typical misunderstandings, and show how to report on time. Along the way we touch on the events the question most often applies to - company parties, town festivals, festivals and live music at bars and restaurants.
Do you have to pay KODA? Find your situation
Whether you have to pay KODA doesn't depend on whether you booked a band or put on a playlist. What matters is whether the music is performed publicly or commercially. A genuinely private party at home is treated more leniently, while an event people can attend, or one a company is behind, normally requires a licence.
The table below covers the situations most organisers find themselves in. Find yours, and you'll know whether KODA is in play and who's responsible. If you're in doubt, it helps to ask whether anyone beyond a private, invited circle can attend - if they can, that points strongly to the performance being public.
| Situation | KODA? | Who pays |
|---|---|---|
| Private party at home | Usually no | No licence for genuinely private performance |
| Company party | Yes | The organiser - usually the company |
| Town festival / public event | Yes | The organiser |
| Bar or restaurant with live music | Yes | The venue as organiser |
| Festival | Yes | The organiser |
Whether an event needs a KODA licence depends on whether the music is performed publicly or commercially - not on whether it's a live band or recorded music.
The rules depend on the type of event, ticket revenue and the number of attendees, and KODA sets the exact rates itself and adjusts them each year. Use KODA's own price calculator to see what your particular event costs.
KODA and Gramex - what each covers
KODA and Gramex are two different organisations, and the difference is simpler than it sounds. KODA collects on behalf of composers, songwriters and music publishers - the people who wrote the music. When a band plays their songs at your event, those works are performed in public, and that's why the organiser pays KODA.
Gramex covers the other side: the performing musicians and the record labels behind recorded music. It applies when you play released music in public - radio, streaming, a DJ or background music in the breaks. Live music on stage falls under KODA, while recorded music over the PA falls under Gramex.
An example: at a company party a cover band plays three sets, and in the breaks a playlist runs from the house PA. The band triggers KODA, because live music is performed, and the playlist falls in principle under Gramex. Because KODA collects for both, you usually end up with a single report - but it's useful to know why both count.
The good news is that you rarely have to go two places. In practice KODA collects on Gramex's behalf in most areas, so as an organiser you can often handle it all in one place.
Two misunderstandings that cost organisers dearly
The first is the most common: 'I've paid the band, so the music is paid for.' That's not how it works. The band's fee covers them turning up and playing. The right to perform the composers' works in public is a separate bill, and it goes to KODA. The two can't be rolled into one.
The second is mixing up KODA and Gramex. They each cover a different type of music - live versus recorded - and although KODA often collects for both, it's worth knowing which is which if you have both a band and a DJ at the party. Once you know what each one covers, it's also easier to understand what you're paying for when the bill arrives.
Private party or public event
The line between private and public is what causes the most doubt. A genuinely private party - a birthday or a wedding at home with invited guests - is assessed more leniently, and here KODA is rarely a concern.
As soon as the event takes on a public or commercial character, the picture changes. A company party, put on by a business and held in rented or company premises, normally counts as commercial performance and requires a licence - KODA has a dedicated company-party licence for exactly that. The same goes for a town festival, a festival or live music in a bar or restaurant with public access.
The form of the event doesn't change the responsibility, though: it's always the organiser who has to have the licence in place, not the musician. If you're unsure whether your event counts as public, assume it does and sort it out with KODA in good time.
How to report the event to KODA
The responsibility sits with you as the organiser, and there's one deadline to remember: report the event to KODA no later than 10 days after it's held. That applies whether you had a single band or a full programme across a day.
What the licence costs depends on the type of event, whether there's ticket revenue, and how many attend. If there is ticket revenue, you can deduct part of the cost of food, drink and accommodation from the calculation basis, while fees, security staff and venue rental can't be deducted. KODA sets the exact rates itself and adjusts them each year, so the best place to get a concrete figure is KODA's own price calculator.
If you have a programme with several bands - for a town festival or a festival - it's a good idea to note who played what. Then the report is quick to fill in afterwards, and you have your documentation in order.
How to stay on the safe side
To avoid hassle later, there are a couple of things to have in order before the day. First, work out whether the event is public or commercial - if you're in doubt, assume it is. Then get an overview of the music: is there a band, does a playlist run in the breaks, is there a DJ? That decides whether it's only KODA, or whether Gramex is in play too.
Finally, it's worth agreeing with the band what they'll play and keeping the programme. Then the report within the 10 days is quick, and you have documentation if any questions come up. The music licence is rarely the big item on the budget, but it's the organiser's responsibility, and it's easiest to handle when it's factored in from the start.