Who licenses what
| Who | What for | |
|---|---|---|
| STEF | Samband tónskálda og eigenda flutningsréttar | Composers and lyricists; licenses businesses |
| SFH | Samband flytjenda og hljómplötuframleiðenda | Performers and phonogram producers; collected through STEF |
Dr.DIO · Music license in Iceland
Music license for a café, shop or restaurant in Iceland
An Icelandic business playing music gets one license from STEF, which covers the authors and also collects the SFH fee for performers and producers.
Which license a café, shop or hotel needs
STEF issues licenses for public performance of music in shops and services (including gyms and hair salons) and in restaurants, bakeries and nightclubs. SFH says it has an agreement with STEF to collect from businesses and refers users to STEF's tariff.
Public performance includes playing radio or TV over speakers in a space open to the public, and STEF says the RÚV license fee does not cover it.
How the fee is worked out
Shops and similar businesses pay a monthly fee by floor area, flat up to 100 m2 plus a fee per extra m2. Restaurants pay monthly by venue type and licensed guest capacity from 50 to 500, through STEF's online calculator. Prices include SFH's share. STEF adds ISK 12,000 to the first invoice if a business ignores its information request, and 50% if it said it plays no music but does.
2026 example: STEF and SFH tariff of September 2026, shop, gym or hair salon up to 100 m2, ISK 7,096 a month, plus ISK 28 a month for each m2 over 100, SFH share included. Restaurant amounts were not extracted for this guide.
Can I play Spotify or YouTube in my business?
Consumer plans of Spotify, Apple Music and YouTube are licensed for personal, noncommercial use under their own terms, so a private account is not a license to play music to customers. STEF says using a personal Spotify account for customers is in fact not allowed under Spotify's terms, although STEF itself has not interfered with how music is played as long as the business holds a STEF license.
Music outside the collecting societies
On the authors' side the Copyright Act No. 73/1972 uses an extended collective license: a user with a contract with a recognized organization such as STEF may also use works of authors who are not members (articles 23 and 26a), and non members can claim payment only from the organization (article 26b). An author falls outside the license only by expressly prohibiting the use.
For recordings, article 47 gives performers and producers a single joint remuneration for any published phonogram played in public, and the claim can be made only by SFH. Whether an individual producer or performer can waive it for a venue is not addressed in the sources read.
Where music is performed substantially and continuously, it is presumed that protected works were played unless shown otherwise (article 8). Intentional or grossly negligent infringement can be punished by fines or up to 2 years in prison (article 54).
Dr.DIO in Iceland
Dr.DIO Studio makes its own electronic and ambient music, no Dr.DIO track is registered with any collecting society, and the Business plan ($14.99 a month per venue, 14 days free) gives the venue a direct public playback license and a certificate for Dr.DIO music.
In Iceland STEF's extended license covers non member authors unless they expressly prohibit the use, and the article 47 remuneration for published recordings can be claimed only by SFH whatever the membership. A venue playing Dr.DIO music should therefore expect STEF to invoice at least the SFH share.
Whether a waiver by Dr.DIO as rights holder removes that share is unclear, so ask STEF and SFH in writing, with the Dr.DIO certificate, before you decide.
Any other music in the venue, such as radio, TV, live music or other playlists, still needs the usual licenses.
Official sources
- STEF: https://www.stef.is/
- SFH: https://sfh.is/
- STEF license page: https://stef.is/vidskiptavinir/verslanir/
- STEF license page: https://stef.is/vidskiptavinir/veitingastadir/
- STEF: https://stef.is/vidskiptavinir/
- STEF legal basis for license fees: https://stef.is/wp-content/uploads/2022/05/STEF-Lagagrundvollur-leyfisgjalda.pdf
- SFH for businesses: https://sfh.is/um-sfh/fyrir_rekstraradila/
- Copyright Act No. 73/1972 (Althingi): https://www.althingi.is/lagas/nuna/1972073.html
- Copyright Act No. 73/1972 (WIPO Lex): https://www.wipo.int/wipolex/en/legislation/details/22509
- Spotify Terms of Use: https://www.spotify.com/us/legal/end-user-agreement/
About this guide
This page explains the general rules as published by the societies and laws listed above, checked in October 2026. It is not legal advice; fees and rules change, so confirm with the society before you decide.
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Questions
How much does a STEF license cost for a shop?
Under the September 2026 tariff, ISK 7,096 a month up to 100 m2, plus ISK 28 for each extra m2, SFH share included.
Do I pay STEF and SFH separately?
No. STEF collects SFH's share on the same invoice.
Do I need a STEF license for a café or restaurant?
Yes for music played to guests; restaurants pay by venue type and licensed guest capacity.
Can I play Spotify in my shop in Iceland?
STEF says a personal Spotify account is in fact not allowed under Spotify's terms, but it does not interfere if you hold a STEF license.
Does the RÚV license cover the radio in my shop?
No. STEF says playing radio to the public needs a STEF license.
Can a shop use music outside STEF and SFH?
STEF's license covers non members, and only SFH can claim the recordings fee, so expect at least the SFH share.