Re: Music lic fees for stores

[Brian Vita <brian_vita@cssinc.com>]

Its about time something was done about the folks at ASCAP.  While I don't
dispute that artists have a right to be compensated for their works, the
folks at ASCAP would go into an establishment and arbitrarily set a
licensing fee (based on what the "inspector" thought that they could shake
down the establishment for), demand the fee or face legal action.

I had one client who asked the inspector for specifics of what music was
heard in his establishment that was covered by an ASCAP contract.  The
inspector declined to provide the names and again demanded payment.  I wish
that I could do contracts like that.  Let's see, you've used my services at
some point last year. When? I don't have to tell you that - here's the bill
and now pay it or I'll sue you.

I certainly believe that a reasonable licensing fee is appropriate.  If
K-mart is playing your music through their sound system to entertain
shoppers, then the music is incidental and a small licensing fee would be
appropriate.  If the clerk at the Quickee Mart has a table radio on, its
for his/her enjoyment, no fee should be required.  If you go into a bar
where people are dancing to records, then the music is no longer incidental
and a larger fee would be in order.

My clients are movie theatres where the music is played as "audio chewing
gum" to amuse the audience and mask conversations before the beginning of
the movie.  ASCAP will go into a number of different theatre locations and
charge a wildly differing licensing fee regardless of the fact that the
theatres may have near identical seating capacities and show schedules.
The fees that I have heard ranged from $20 to $1000 apparently based on
nothing more than what they thought that could get out of the mark, er,
customer.

Brian

At 07:50 PM 12/29/98 -0500, Gary F wrote:
>I recall some time back a thread on this list concerned the fees stores & 
>restaurants had to pay ASCAP, BMI and SESAC in order to play a radio or TV.
>
>While going through an industry newsletter today I found that in November 
>Congress passed a bill that would ease copyright laws and exempt smaller 
>restaurants (3,750 sq feet or less - this would include most fast food 
>places) from paying royalty fees for playing radio & television music. 
>Larger establishments would also be exempt if they used a "consumer" type 
>radio or stereo with only 2 speakers or other limited equipment.  New rules 
>will also make it easier to challenge royalty fees by going to one of the 12 
>circuit courts around the country - until now disputes HAD to be settled in 
>court in New York City ONLY.
>
>-Gary Francis

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