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Yes you do.I'd have to wonder about copyright laws - if you play popular or other music. I could be wrong but broadcasters pay for the use of the music - royalties possibly.
I wonder just how hard it would be to obtain a license for a modest power station. Lots of colleges and institutions have them. You might investigate and you might be pleasantly surprised. That won't solve the copyright problem but if local bands give you stuff to play the problem is solved.
Yes you do.
Here in the UK it's even worse, a business will have to pay royalties even if they have a radio switched on playing music on their premises.
I think this is totally stupid. Fair enough, if a radio station wants to play music they should have to pay and if a business wants to play music to their customers they should have to pay. But if a bussiness wants to have a radio on playing to their customers then they shouldn't, because the record company is already receiving royalties from the radio station!
There is also a good arguement to scrap these kind of royalties because playing a band's music actually encourages people to buy their music.
It'll probably cost a lot of money, even for a low powered station.