Music licensing companies come calling for royalties

[SoulManX]

[FONT=Times New Roman, serif]Six months after raising the curtain on their gourmet coffee shop in the beachside Indian Harbour Place shopping center, Laurie and Jim Hall decided to offer live music on Friday and Saturday nights.[/FONT]
[FONT=Times New Roman, serif]The performers, normally duos, mainly covered songs written and made famous by other musicians. There was no cover charge, no pay for the musicians, no limit to how long patrons could sit on a couch with their coffee, playing chess and enjoying the music.[/FONT]
[FONT=Times New Roman, serif]No problem.[/FONT]


[FONT=Times New Roman, serif]Then a few months later, music industry giant ASCAP started calling and sending letters saying East Coast Coffee & Tea was in violation of copyright laws. The fee to continue the music was $400 a year.[/FONT]
[FONT=Times New Roman, serif]"At the time, the shop was losing money, so we had to break it up into payments," said Laurie Hall. But the Halls paid, and the music continued.[/FONT]


[FONT=Times New Roman, serif]"At the time, the shop was losing money, so we had to break it up into payments," said Laurie Hall. But the Halls paid, and the music continued.[/FONT]
[FONT=Times New Roman, serif]Six months later, other music copyright companies began calling the Halls and demanding money. Most days there would be three or four phone calls from each company, Hall said. Finally, unable to afford the fees, she had to call most of her musicians -- those who did not play original music -- and tell them they would not be allowed to continue performing.[/FONT]
[FONT=Times New Roman, serif]This aggressive -- but legal -- posture being taken by music licensing companies has the potential to unplug live music in many restaurants, bars and coffee shops in Brevard County.[/FONT]
[FONT=Times New Roman, serif]It comes on the heels of a massive music industry crackdown during the past several years on illegal downloads from the Internet. Whether it's a professional recording taken from a Web site or an accordion player singing a Jimmy Buffet tune in a small venue, the industry is working to collect royalties for whoever wrote the songs.[/FONT]
[FONT=Times New Roman, serif]"They have threatened to shut down my place," said Lou Andrus, owner of the popular beachside nightclub Lou's Blues.[/FONT]


[FONT=Times New Roman, serif]Copyright laws[/FONT]
[FONT=Times New Roman, serif]When a songwriter signs with one of the licensing companies -- the country's three biggest are BMI, SESAC and ASCAP -- his or her music is copyrighted.[/FONT]
[FONT=Times New Roman, serif]Unless Hall pays the three major companies, and even some of the smaller ones, she would be breaking the law by having musicians perform songs written by others.[/FONT]
[FONT=Times New Roman, serif]"It makes me so angry," Hall said. "People like playing here because it's not a bar, there's no smoke and it's a clean environment. I feel like the greedy music industry is extorting money from us and hurting these musicians just starting out."[/FONT]
[FONT=Times New Roman, serif]In addition to the $400 she has already paid ASCAP, she routinely receives annual bills from BMI for $305 and from SESAC for between $250 and $300.[/FONT]
[FONT=Times New Roman, serif]She doesn't understand why a little coffee shop is in the same "eating/drinking establishment" category as places where music is more front and center, such as Lou's Blues or Meg O'Malley's in downtown Melbourne. Hall said she likely will start offering music just one night a week.[/FONT]
[FONT=Times New Roman, serif]SESAC spokesman Shawn Williams said in e-mail responses to questions that it is his company's responsibility to enforce copyright laws, many of which were enacted nearly a century ago.[/FONT]
[FONT=Times New Roman, serif]"The copyright law requires each business that publicly performs music to obtain permission prior to performing any copyrighted music," Williams said, adding that the owners of East Coast Coffee need to decide whether music "is important to their operations and overall profitability. We have many license agreements with small establishments."[/FONT]
[FONT=Times New Roman, serif]Williams defends the money collected.[/FONT]
[FONT=Times New Roman, serif]"This provides the majority of income to songwriters," he said.[/FONT]


[FONT=Times New Roman, serif]Run-ins[/FONT]
[FONT=Times New Roman, serif]Andrus, the owner of Lou's Blues, said he has had many run-ins with the copyright companies over the years.[/FONT]
[FONT=Times New Roman, serif]"It started 15 years ago when I had a guy come out to our other place, Cantina dos Amigos, and play Mexican music on his guitar on the patio," Andrus said. "They came after me for money. Are they really sending royalty checks to the songwriter in Mexico?"[/FONT]
[FONT=Times New Roman, serif]Andrus said he pays BMI and ASCAP about $3,000 a year but is ignoring the smaller companies that seek royalties from him.[/FONT]
[FONT=Times New Roman, serif]"There are so many damned companies you don't know who to pay," he said. "One guy called and said I had to pay him if I played any gospel music at all. It's really a mess."[/FONT]
[FONT=Times New Roman, serif]Hall insists that her coffee shop makes no extra money when the musicians play. Unlike a bar where patrons may imbibe several cocktails during the course of the night, her customers normally order one cup of coffee per performance.[/FONT]
[FONT=Times New Roman, serif]But Andrus and others who refuse to pay could find themselves paying anyway -- in the form of fines.[/FONT]
[FONT=Times New Roman, serif]"The law provides damages ranging from $750 to $150,000 for each song performed without proper authorization," Williams said.[/FONT]
[FONT=Times New Roman, serif]And in no way do the songs have to be performed live, or even on the radio, to elicit calls for royalties.[/FONT]
[FONT=Times New Roman, serif]Andrus said a friend of his who owned a restaurant that did not feature music was contacted by a company looking to charge him because it owned the rights to a Hank Williams Jr. song, "Are You Ready for Some Football?" The song preceded every "Monday Night Football" telecast, which the restaurant carried on its televisions.[/FONT]
[FONT=Times New Roman, serif]He said his friend simply chose to turn the volume down when the song came on.[/FONT]
[FONT=Times New Roman, serif]The licensing companies use a variety of methods to find out whether copyrighted music is being used.[/FONT]
[FONT=Times New Roman, serif]"ASCAP representatives may visit establishments and find that they advertise live entertainment," explained Richard Reimer, senior vice president of ASCAP, in an e-mail. "Local newspapers carry advertisements for venues that present live entertainment and, of course, the Internet is a valuable resource as well."[/FONT]


[FONT=Times New Roman, serif]Fewer gigs[/FONT]
[FONT=Times New Roman, serif]Singer/songwriter Al Urezzio, who played at East Coast Coffee, said he recently lost his steady gig at the Getaway Lounge in Suntree because the owners were being asked to pay copyright fees as well.[/FONT]
[FONT=Times New Roman, serif]Now Urezzio, who performs as "Grumpy Al," is relegated to performing only his original compositions. That means his options on where to perform are limited.[/FONT]
[FONT=Times New Roman, serif]"This is really bull," said Urezzio, who owns the Burger Inn on U.S. 1 in Melbourne. "East Coast called and told me to only play originals from now on."[/FONT]
[FONT=Times New Roman, serif]Chad Fagg, one half of the pop-rock duo "Just Blue," also is without a steady place to perform. Like Urezzio, the group was told recently that they could no longer play at the East Coast Coffee -- where they've performed for four months -- unless they played only original music.[/FONT]
[FONT=Times New Roman, serif]"It's very disappointing, and it's frustrating," Fagg said. "They gave us a shot before anyone else would. I understand it's about royalties, but it's such a small place."[/FONT]


[FONT=Times New Roman, serif]Other crackdowns[/FONT]
[FONT=Times New Roman, serif]Nightclubs and coffee shops are not the only places affected by the industry crackdown.[/FONT]
[FONT=Times New Roman, serif]Neil Butler, owner of Hawk's Gym in Melbourne, said he has had to pay a few hundred dollars a year to licensing companies in order to pipe in satellite music to his fitness center. Commercial radio is free to play because the radio stations have already paid the necessary fees.[/FONT]
[FONT=Times New Roman, serif]Professional guitarist and singer Eddy Fischer, who performs in the group "Robin and Eddy," has been a member of ASCAP since he was 17. Having performed with members of The Monkees and The Mammas and Pappas, Fischer figured it was a good idea to protect himself. But even he thinks the industry might be going a bit too far.[/FONT]
[FONT=Times New Roman, serif]"I think this is a little out of line," he said a day before playing his new age-style folk music at the Halls' coffee shop. "It seems kind of rough that little coffee houses with no stage or no lights that were not built for live music have to come up with that kind of money."[/FONT]
[FONT=Times New Roman, serif]But ASCAP's Reimer said the licensing fees are "affordable for any small nightclub, restaurant, tavern or coffee house." He said there was little option available other than seeking permissions directly from the songwriters.[/FONT]
[FONT=Times New Roman, serif]Andrus agreed business owners really don't have a choice.[/FONT]
[FONT=Times New Roman, serif]"It's extortion, it's intimidating. It's such a scam."[/FONT]

 

[SoulManX]

FREQUENTLY ASKED QUESTIONS ABOUT LICENSING
1. Why should I pay for playing music in public?

We often use the expression "they're playing my song," not always remembering that while we may have emotionally adopted the song, it still legally belongs to the songwriter who created it, and the music publisher who markets it. When you use other people's property, you need to ask permission.
​

2. What is a public performance?

A public performance is one that occurs either in a public place or any place where people gather (other than a small circle of a family or its social acquaintances.) A public performance is also one that is transmitted to the public; for example, radio or television broadcasts, music-on-hold, cable television, and by the internet. Generally, those who publicly perform music obtain permission from the owner of the music or his representative. However, there are a few limited exceptions, (called "exemptions") to this rule. Permission is not required for music played or sung as part of a worship service unless that service is transmitted beyond where it takes place (for example, a radio or television broadcast). Performances as part of face to face teaching activity at a non-profit educational institutions are also exempt.

We recommend that you contact your local ASCAP representative who can discuss your needs and how ASCAP can help you.
​

3. What Does the ASCAP License Do?

ASCAP gives you a license to entertain your customers, guests and employees with the world's largest musical repertory. One of the greatest advantages of the ASCAP license is that it give you the right to perform ANY or ALL of the millions of the musical works in our repertory. Whether your music is live, broadcast, transmitted or played via CD's or videos, your ASCAP license covers your performances. And with one license fee, ASCAP saves you the time, expense, and burden of contacting thousands of copyright owners.
​

4. I bought the record or sheet music. Why do I need permission to perform the music?

Copyright owners enjoy a number of different rights including performance rights, print rights and recording rights. Rental or purchase of sheet music or the purchase of a record does not authorize its public performance.
​

5. I want to record or videotape a song or record. Do I need permission, and how do I obtain it?

If you want to make copies of, or re-record an existing record, tape or CD, you will probably need the permission of both the music publisher and the record label. A music publisher owns the song (that is, the words and music) and a record company owns the "sound recording" (that is, what you hear... the artist singing, the musicians playing, the entire production).

If you plan to hire your own musicians and singers and create an original recording of a copyrighted song, then you need the permission of only the music publisher.

ASCAP does not license recording rights. Recording rights for most publishers are represented by the Harry Fox Agency:
Harry Fox Agency, Inc.
711 Third Avenue
New York, N.Y. 10017
Tel: (212) 370-5330
Fax: (212) 953-2384
www.harryfox.com
The name and address of the record company should appear on the record label. The Recording Industry Association of America, a trade organization for record labels, can provide you with more information on the rights of record labels.
Recording Industry Association of America (RIAA)
1020 19th St. NW, Suite 200
Washington, D.C. 20036
Tel: (202) 775-0101
Fax: (202) 775-7253
http://www.riaa.com
​

6. Where does the money go?

Quite simply, to our members. All the fees we collect are distributed as royalties, after deducting operating expenses (currently 12.0%).
​

7. What songs are in the ASCAP repertory and who are your members

Check out ACE (ASCAP Clearance Express), ASCAP's searchable database of performed works, along with writer, publisher and recording artist information.
​

TOP

 

[KenK]

So, the shop's not profitting from the performances, in general the shops not making any real profit at all, and the musicians aren't being paid for the performances? In situations like this, I don't give a flyin' f*** about the law, these royalty companies are just being greedy bullies.

 

[SoulManX]

So, the shop's not profitting from the performances, in general the shops not making any real profit at all, and the musicians aren't being paid for the performances? In situations like this, I don't give a flyin' f*** about the law, these royalty companies are just being greedy bullies.

Aye I agree the greed has become a virus it's going to kill entertainment at some point.

 

[PLAS]

now it seems the record companies want to get their money somewhere, since there's fewer records sold

 

[SoulManX]

now it seems the record companies want to get their money somewhere, since there's fewer records sold

I hope they know the well will get dry one day...

 

[rdh007]

 

[redmarvel]

So, the shop's not profitting from the performances, in general the shops not making any real profit at all, and the musicians aren't being paid for the performances? In situations like this, I don't give a flyin' f*** about the law, these royalty companies are just being greedy bullies.

Agreed... what's the difference between having a live musician playing it or playing a radio station / CD? The music companies don't expect restaurants to pay for the right to play the radio too, do they?

(and this scraps an idea I had about talking my sister into doing a youtube video of the ***** Cat Song by Connie Vannett)

 

[SoulManX]

Agreed... what's the difference between having a live musician playing it or playing a radio station / CD? The music companies don't expect restaurants to pay for the right to play the radio too, do they?

(and this scraps an idea I had about talking my sister into doing a youtube video of the ***** Cat Song by Connie Vannett)

Really now

 

[The Evolutionist]

I'll start giving a rats ass about musicians right to copyright their performances of their songs the day I get the right to copyright my performances.

 

[jaguarr]

This is nothing new in the States. Owners of establishments that have live cover music have routinely had to pay these extortion fees. Looks like these agencies are branching out and touching people in Australia, now. Greedy bastards.

jag

 

[SoulManX]

This is nothing new in the States. Owners of establishments that have live cover music have routinely had to pay these extortion fees. Looks like these agencies are branching out and touching people in Australia, now. Greedy bastards.

jag

Actually this article is from FL.

 

[jaguarr]

Actually this article is from FL.

They're talking an awful lot about Melbourne. Made me think it was about Australia. At any rate, this stuff has been going on for years and years. When I was playing in my blues band, there were certain places we wanted to play but just couldn't because the establishments weren't paying ASCAP fees and at that time, a good chunk of our repertoire was old blues tunes we'd reworked to be more modern and electrified.

jag

 

[SoulManX]

They're talking an awful lot about Melbourne. Made me think it was about Australia. At any rate, this stuff has been going on for years and years. When I was playing in my blues band, there were certain places we wanted to play but just couldn't because the establishments weren't paying ASCAP fees and at that time, a good chunk of our repertoire was old blues tunes we'd reworked to be more modern and electrified.

jag

That really sucks...you would think artists would be happy for cover bands keep their music alive for future generations to enjoy.

 

[jaguarr]

That really sucks...you would think artists would be happy for cover bands keep their music alive for future generations to enjoy.

The artists have NOTHING to do with it. It's the companies that own the rights to those songs that drive all of this, and all they care about is getting paid. (And they've been caught fudging numbers so they don't have to give artists their full cut of those fees in the past, too).

jag

 

[SoulManX]

The artists have NOTHING to do with it. It's the companies that own the rights to those songs that drive all of this, and all they care about is getting paid. (And they've been caught fudging numbers so they don't have to give artists their full cut of those fees in the past, too).

jag

Artists can be that blind to what the record companies are doing to honest folks.

 

[jaguarr]

Artists can be that blind to what the record companies are doing to honest folks.

I don't think most of them are, but for every Prince or Pearl Jam who fights the system and makes sure they own their music and image 100%, there are thousands who just work within the system as is. The record companies and licensing agencies have found a lot of creative ways to screw artists, unfortunately.

jag

 

[SoulManX]

I don't think most of them are, but for every Prince or Pearl Jam who fights the system and makes sure they own their music and image 100%, there are thousands who just work within the system as is. The record companies and licensing agencies have found a lot of creative ways to screw artists, unfortunately.

jag

I feel real sorry for the cover bands and places that can afford to have them.