ASCAP & BMI -- Protectors of Artists or Shadowy Thieves?
NOTE: I first wrote this article in 1993 when I became intrigued with the complexity
of the music licensing system, and to help educate those who are affected by ASCAP, BMI and SESAC (known as PRO's= Performance Rights Organizations). I have been tinkering with it ever since trying to keep it more up-to-date,
since I want to help shed some light on a complicated situation that has a large impact on musicians, music listeners and public places where music happens. Undoubtedly parts of it need updating, but the basic explanations and issues are still unchanged. My experience is that musicians, venues and the general public know almost nothing of this system that has a great
deal of influence in the music business, and involves nearly a billion dollars annually. These organizations exist
by a strange set of legal circumstances, and are very little understood or regulated, yet they have a wide influence and
control a lot of money in the modern music industry and in hundreds of thousands of places of business. A number of publications
declined to publish this, not wishing to stir up too much trouble. There have been many edits and updates since it
was written, and one of these days I hope to seriously research and update it or encourage a professional journalist to dig into it... I welcome your
input to update this information if you find something incorrect. My only intent
is to explain what I understand to be the way the system works, though my own
opinion that we could design a better system no doubt creeps in.
A number of issues that that need clarifying have arisen since this was
written, and could use the services of a skilled journalist or investigator
to look into. These include whatever changes have been made by insiders to ASCAP
and BMI charters and bylaws, the emergence of SESAC as a larger player in this
game, the complex issues of licensing Karaoke, games, podcasts, satellite, cable
and internet music, as well as other changes involving the use of internet, television and
video in public businesses. The basic system of
licensing is still in place, and the explanation of its details is still accurate,
and I would venture a guess that size of the "licensing empires" and
the total dollar amounts of licensing money have gone vastly higher than the old numbers
I give here.
The Folk Alliance organization also successfully negotiated a deal with the PRO's in 2009 involving what are commonly called "house concerts," where people host musical events in their private homes but do some publicity, blurring the "private/public" issue. You obviously don't need a license to blast some music at a private party in your house, but advertising publicly that you're having a concert at your house where copyrighted music is being performed is not OK with everyone. It's a delicate issue.
I also encourage some of you to read this posting
by songwriter and folk musician Richard Phillips, who wrote me his saga
of how he became possibly the first person to beat BMI in a legal battle over a BMI license for a restaurant.
It involved him playing only his own music and traditional songs in a cafe in New York state. It's long and involved, but
if you are really into this stuff it's worth reading.
Harvey Reid (updated Dec 2021)
Many of you who are music listeners have no doubt read the small print in the
liner notes of recordings, seen the letters ASCAP and BMI, assumed that they had
some legal meaning concerning ownership of music and never thought much more about
it. Many musicians, writers, club owners, promoters and other active participants
in our music industry do not know much more about these organizations than this,
even though they control huge amounts of money and have vast power in the music
business. ASCAP stands for American Society of Composers, Authors and Publishers
& BMI for Broadcast Music Incorporated, and they are known as "performance
rights licensing agencies" or PRO's." For all the average musician probably understands
of the real mechanisms of these organizations: the specifics that determine the
collection and distribution of money, who gets paid when, how much they get, and
how the vast underground network of legal and financial regulations and procedures
work, ASCAP or BMI might as well be the CIA. And it may well be true that many
who understand this system the least are people who have the most legitimate grievances
against it. It is certainly worth trying to look inside a hidden industry that
controls so much money and power in the name of the public good, without
any elected public officials or legislatures having a say in its operation. ASCAP
derives all its power not from any laws that have been passed by elected officials,
but from a decades-old federal judicial consent decree in the Southern District Court
of New York. ASCAP is an unincorporated membership association, and not a non-profit corporation as it is often assumed.
Struggling musicians and songwriters seem to have become pervaded with sort of
a lottery-ticket mentality; they know that if they make it big they will receive
a lot of royalty money someday from ASCAP or BMI, so they generally join and don't complain. Since nobody plans to stay
unknown and impoverished, the concern among less-than-world-renowned music business
people about what they might do to get a fairer shake in the system before fame
sets in seems small. ASCAP has published remarks to the effect that all legal
challenges to their system have come only from consumers of music and not owners, and
they state in their literature that "apparently the writers and composers
are satisfied with the current system." ASCAP and BMI are extremely powerful
organizations that control large amounts of money, and through the hidden mechanisms
of their various policies, lawsuits, intimidation, odd legal arrangements and
seemingly outdated legal precedents, they are systematically engaging in activities
that are entirely unregulated by elected officials, with rules and policies set
by those who profit the most from the current system. Those who are in a position
to reform the performance rights licensing system are the very ones who are profiting
most from it, and the system shows no signs of abandoning any of its
long-established methods of running itself.
History of ASCAP and BMI
ASCAP was formed in 1913, shortly after the 1909 Copyright Law was enacted,
supposedly prompted by the discovery (fictional) that beloved songwriter Stephen Foster
died penniless while publishers became wealthy on his music (which did happen.) A system was set
up, based on tabulating the publishing of printed sheet music and soon amended
to include the sales of recordings, whereby the composer and/or writer would
receive a royalty for each copy distributed. A royalty rate of about 1¢
was originally paid per copy; over the years the mechanical rate, as it is called,
has risen to 9.1¢ per song in the last 90 years. The focus of the "PRO's" (performance rights organizations) and the music publishing industry in general have moved away from sheet music, becoming almost
entirely focused on "performance" royalties. This is intended to be a way that owners of music can be paid when their music
is used in "public performances."
Set up as an unincorporated
membership association under the laws of New York, ASCAP's licensing contracts
with its composer and publisher members, who actually own the copyrights, gives
it the power to collect and distribute money and to police infringements. In
1991 ASCAP had about 32,000 writer and 14,000 publisher members and no doubt these numbers are significantly larger now.
As sound recording, movies, television have been introduced, ASCAP has expanded
its system to collect money from each new format. ASCAP claims that their methods
of distribution are fair and regulated, and until the advent of modern mass
media entertainment, they may have done an arguably adequate job of tabulating
and paying out money. With musical performances now including live music, elevator
and office music, radio, TV, movies, video, airplanes, theater, tape decks,
and jukeboxes in addition to printed sheet music, the task of logging the usages
of copyright has grown astronomically. ASCAP estimates that 1 billion musical
performances occur in the U.S. yearly. Now that social media is such a large force these numbers have likely grown astronomically.
BMI was created in 1940 as a response by many (primarily broadcasters themselves
who were buying ASCAP licenses) who felt that ASCAP engaged in monopolistic
practices, price-fixing, and ignored the needs of alternative musics such as
R&B, country and rock. For many years it was about 60% the size of ASCAP in revenues.
A privately-owned third, and much smaller organization, SESAC (significantly smaller than
the size of ASCAP or BMI) was formed in the early 1960's, and was primarily involved
in gospel music. Recently Bob Dylan and some other well-known music owners switched
to SESAC, and SESAC has suddenly become a much larger player. Businesses
who have been mystified by being forced to pay for licenses from ASCAP and BMI
are now being asked to fork over yearly fees to SESAC also. A number of restaurants with live music near me have been successfully sued by SESAC in the past few years.
Any inquiry made directly to either ASCAP or BMI seems to yield many shiny,
expensively-printed pamphlets with lots of glamorous photos of stars, detailing
how fair and just they are about paying royalties to deserving writers and publishers.
How the system works...
In order to prevent the chaos of each music copyright owner trying to supervise
any performance or broadcast uses of their work, and the equally large problem
of each user having to seek out the owners of each song for permission,
the intermediary licensing organizations sell licenses
to anyone who uses copyrighted material that belongs to their members. ASCAP
claims that "the public interest demands that such an organization
exist" and that it is "the only practical way to give effect to
the right of public performance which the Copyright Law intends creators
to have." Permission is essentially always granted in the form of a yearly blanket license,
that entitles a buyer to use anything in the ASCAP or BMI catalog during
a calendar year. The price for this blanket license is determined by an
elaborate formula that involves the demographics of radio and TV stations,
concert ticket price, seating of the room, the form of music (radio, solo,
band, show, theater, etc.) and number of hours per week music is being used.
(Although people have written me recently and said that the rates are based on fire-code "potential occupancy" and not something
real like attendance or cash register sales.)
When I first researched this, television comprised 46% of ASCAP's revenues, radio 35%, and presumably
performance venues provide the other 19%. ASCAP may not deny a license to anyone, nor discriminate in their prices, and
all similar users must supposedly pay the same rate. The cost of the blanket licenses, however, varies
widely, and many complaints have been filed about unreasonableness of the
fees. A small nightclub might pay anywhere from
$200-1000 per year to ASCAP alone. (There is a built-in but seldom used appeals
process involving the U.S. Southern District Court of New York, whereby
any purchaser of a license may contest the reasonableness of their fees
to the court. The burden of proof of reasonableness is reportedly on the PRO.) Muzak®,
jukeboxes and some other groups like Ringling Brothers Circus and Disney
on Ice have arranged their own special licenses at lower rates.
Any organization
that fails to buy a license is at risk of being sued by a licensing organization on behalf
of the copyright owner, who need not be present in the courtroom, incidentally,
even though they are a party in the lawsuit. Even parades and political
fund-raisers with a marching band have been sued, and the courts handed
down a landmark judgement against The Gap clothing stores chain (Sailor
Music vs. Gap Stores, Inc., 1982) that has launched an aggressive new ASCAP
campaign against all manner of retail stores that play the radio or tapes
for shoppers. (This ruling was recently overturned in appellate court, however)
Even aerobics and yoga instructors who use music have been notified by ASCAP of their
need for licenses for the dance music they use in exercise programs! The
legalese states that: "a singer is performing when he or she sings
a song; a broadcasting network is performing when it transmits his or her
performances; (whether simultaneously or from records); a local broadcaster
is performing when it transmits the network broadcast... and any individual
is performing whenever he or she plays a phonorecord... or communicates
the performance by turning on a receiving set."
ASCAP, BMI and SESAC have field agents on payroll, employed by their dozens of field offices, who watch
the newspapers and radio (and even hire clipping services) and when a new nightclub
starts offering live music, for example, an agent will either show up or write
a letter demanding money for the license. Now of course they use internet searches, and no doubt they are quite active on social media scanning for violations. The PRO's have recently adopted a clever new way to find out where the live music
venues are. Musicians are invited to submit lists of where they have performed, and are promised some money in payment
for their having played original music. This is very tempting, especially for unknown musicians, who tend to get little
or no money in royalty payments from ASCAP or BMI. This way the PRO's can find out where music is being performed, and
they also have written testimonial evidence from a writer member of their organization that copyrighted music was performed
there. This saves ASCAP and BMI from having to find the venues and then send spies in to observe copyrighted music being
performed in venues that do not have licenses, and it looks just like an attempt to be fair to unknown songwriters and
no doubt costs very little in payouts. There are reports that SESAC offers monetary rewards to members who "turn in" music
venues that do not have licenses.
Refusals and arguments eventually lead
to more serious letters and then lawsuits, and the venue always loses, usually to the tune of tens of thousands
of dollars in fines plus legal fees per infraction allowed by law. If a nightclub
or even a store refuses to buy the license, then ASCAP or BMI will hire spies,
often local music teachers or semi-professional musicians, who will make notes
and testify in court as expert witnesses that on a certain day at a certain time
a certain song was indeed played. Attempts by club owners to post "No ASCAP
material to be performed here" signs or to ask that no musicians perform
ASCAP material have not worked well (Dreamland Ballroom vs. Shapiro, 1929; also Shapiro,
Bernstein & Co. vs. Veltin, 1942), and invariably some musician unwittingly
performs something in ASCAP's immense catalog. Note that even though the musicians
or the employees decide what is played, it is the owner of the establishment where
the music is played who gets sued. ASCAP bases this on the claim that "it
would be a practical impossibility for ASCAP to locate and license musicians,
who are often itinerant." Being a type of tort law, is not unlike the "deep-pockets"
style of lawsuit that enables aggrieved parties to select which of the "jointly
and severally liable" parties to sue, presumably whomever they might be likely
to get money from, rather than just the party that caused the problem directly.
(Technically these cases rely on what is called "secondary liability" and "vicarious infringement," which are not well-defined legal doctrines, and have been essentially entirely regulated by court rulings and not legislation.) According to current legal precedent, there is basically no way to "beat" the current system, as
numerous nightclub owners who felt that the fees were unjust have found out.
Antitrust
laws have given ASCAP a little trouble over the years; however, current legal
arrangements have created a seemingly monopolistic system that even powerful groups
of television and radio stations have failed to break in court. (You are not free
to shop at another licensing agency if you don't like the deal or the price ASCAP
offers. If you use the music, either you pay their fee or they sue you if they
catch you using it without the license. And they can charge you penalties up to
$20,000 + legal fees per infraction!) ASCAP has teams of lawyers who do nothing
else and who are extremely well-versed in the technicalities of the law, and a
tavern owner with a small-town lawyer have essentially no chance of winning a lawsuit.
Legal right to do this has been established over a series of court rulings and
legal precedents, and so far no one has been able to win a lawsuit against ASCAP
for infringement of copyright by "public performance." A Latino radio station in Los Angeles successfully fought off a challenge, since they were playing Mexican music that was outside the jurisdiction of the American PRO's. Songwriter Richard Phillips was able to ward off BMI when he performed his own music in a restaurant, though only through the unusual intervention of his congressperson and the U.S. COpyright Office. Apparently ASCAP
has the judicial system in their back pocket, and even organizations as large
as CBS have lost lawsuits against them. To quote an ASCAP pamphlet: "ASCAP
infringement cases are 'open-and-shut'; for all practical purposes there is no
defense to them."
Indeed, over the years the courts have struck down a myriad of challenges
from schools, state universities, non-profit organization, private clubs
and the like who have sought to find a loophole by claiming to be non-public
or non-performing. People have unsuccessfully argued that purchasing of
sheet music or records entitles them to be used in performances. A much-contested
area has involved retail stores playing the radio or tapes. The law says
that such use is legal if the components used are "of a type commonly
used in private homes", though GAP Clothing Stores lost and then won
their lawsuit, apparently because of their systematic and large-scale commercial
intent to entertain their customers, even though they were using supposedly
legal small home stereo components in all their stores. Apparently the courts
have decided that stores with less than 620 square feet of space are exempt.
Principals and officers of corporations have been found personally liable
for copyright infringement. Hotels, motels, universities, summer camps,
members-only clubs and even semi-private organizations need licenses, as
do non-profit and public radio stations. Peppercorn, a store in Boulder,
Colorado that sells gourmet cookware recently lost a case in which they
were playing music that was being sold in the store (supposedly an exemption),
but because they were selling other things than music, they were ruled non-exempt
and fined.
There are many stories of store and restaurant owners who had no idea what they
were dealing with and actually thought they were being shaken down by the Mafia
when ASCAP agents confronted them. Indeed, ASCAP has been sued on mob-like charges
numerous times, and in the important ASCAP vs. Buffalo Broadcasting case in 1980-82,
ASCAP lost in federal court on charges of price-fixing, racketeering and monopolistic
activities. The decision was reversed in appeals court based on the court's odd
determination that since a radio station could buy a per-song license (at a phenomenally
higher rate per song) from ASCAP, there was somehow free trade and no price-fixing
inherent in the blanket license. In the fine print of ASCAP's contract with broadcasters
it says that a user may buy a per-song license, though apparently no licensee
has ever bought one in their 90 year history. It is extremely interesting to note
that live music venues are not offered a per-song license from ASCAP as an option.
They have only one choice: the blanket license.
Note that even though a record company that manufactures a recording pays
the owner of the copyright mechanical royalties, the radio station that
plays it must pay again for their ASCAP license; and a restaurant or store
that plays that radio station to entertain their customers must pay a third
time. This was determined in a landmark 1931 Supreme Court case against
a New York hotel. Oddly, a different arrangement is now the case in television,
and restaurants pay for re-transmission of radio broadcasts but they do
not have to pay the creators of television shows for cable re-transmissions
of television in the bar! (Fortnightly Music vs.United Artists, U.S. Supreme
Court, 1968 and Columbia Broadcasting vs. Teleprompter Corp, 1974)
There are some types of organizations that are exempt from needing ASCAP
licenses. These exemptions are the following:
- religious organizations (during worship only)
- non-profit educational institutions
- record stores and other establishments where the primary purpose of
playing the music is to sell it
- government bodies (state and federal)
- state fairs and agricultural events
- certain veterans and fraternal organizations during charitable social functions
(added in 1982 in a last-minute legislative session, and somewhat suspicious)
- various "non-commercial" and charitable performances that
have no admission charge, commercial intent or paid performers
- movie houses
ASCAP then does what they refer to as "random" sampling of radio
airplay, and through a bewildering series of calculations that weight the
performances according to the estimated audience size of the station, they
distribute money collected from licenses to owners of copyrights of material
that has been logged in their surveys. ASCAP secretly tapes 60,000 hours
of radio broadcast a year and 30,000 hours of television for their samplings.
Based on their estimate of 600 million broadcast performances a year, at
an estimate of 12 songs per hour, this divides out to about one tenth of
a percent of all airplay gets sampled to determine who gets nearly $300
million!! ASCAP samples in 3 hour television and 6 hour radio segments,
called units, and their strategies for taping are not public information.
Neither ASCAP or BMI does any survey of performance venues (clubs, concerts,
festivals, etc.); therefore all money collected from licenses of performance
venues is paid out based on radio airplay. The assumption is that this is
fair and reasonable. Unlike ASCAP's taping of broadcasts, BMI does their
sampling directly from radio station logbooks.
Problems with the system
Complaints against the unfairness of the music licensing system seem to involve
ASCAP slightly more than BMI (though I make no claim to knowing this to be true,
and BMI and SESAC have also been aggressive in dealing with non-paying music users), and
many performance venues have fewer complaints with the usually somewhat-lower
fees BMI charges.
- Performance venues, especially those that feature traditional or non-commercial
music, feel very strongly that while their licensing fees are being collected,
the money generally won't ever reach the hands of those who wrote the specific
music being played on their stage, since many musicians often perform only their own
or traditional "public domain" music. Promoters have even offered to submit logs of performances
so compensation could be done fairly, so far to no avail. And there are
currently no provisions for a performer to receive a pro-rated per day share
of whatever was paid to ASCAP or BMI for the year for performances of original
works in a venue that has bought a license. ASCAP maintains that the music
played at the thousands of performance venues where it collects many millions
of dollars are fairly represented by the radio airplay samplings. (In the
case of what ASCAP calls "serious music concerts" where the artist
is paid more than $1500, the promoter is allowed to submit a concert program
or list of works performed and pay for only those works performed. Under
no other circumstances that I am aware of are concert venues allowed to
pay for only the works performed. And I can find no actual definition of
"serious music" in any ASCAP literature.)
- Works in the public domain pose a number of questions. When ASCAP
or BMI surveys a performance of a traditional song it is assigned a much
lower "weight" and the owner of the copyrighted arrangement receives
less money than if the music was original. BMI pays 20% of the rate of original
music and ASCAP 10%. This means that when the pie that is divided up, (ASCAP
collects all the money and divides it up according to the results of their
surveys) those who control the copyrights of arrangements of those public
domain works will get less money and the shares that go to the non public
domain music will be a little larger. Some people feel that the other 80%
or 90% of the money that would have gone to the owner should belong to the
American people or to some public fund. Others take issue with the whole
concept of an arrangement of a public domain work, claiming that there technically
is no such thing as public domain, since arrangements become property of
their arrangers. This is certainly the case with centuries-old classical
and folk music, whose copyrights have long since expired, but whose performances
are being regulated by ASCAP and BMI as copyrighted arrangements. In fact,
ASCAP has over 40 arrangements of Beethoven's Moonlight Sonata on file,
and even more amazing, nearly 80 versions of Row, Row, Row Your Boat! Thus
if you had a nightclub and no ASCAP license, and their spies caught someone
performing one of those pieces, even though the song is in the public domain,
since an ASCAP writer or publisher has copyrighted an arrangement of the
song, it is conceivable you might still possibly be sued for infringement
of copyright. (The promoter of a small bluegrass festival informed me that
they were cited by ASCAP because a Bill Monroe song was performed: Monroe's
music is all BMI, but the song in question, Uncle Pen, had been arranged
and recorded by Ricky Skaggs, an ASCAP artist!)
- There are many who feel that ASCAP's system of identifying unknown
works that are collected in their samples is flawed, since it depends on
their use of what they call "musical experts" who listen to the
60,000 hours of ASCAP samplings each year, identify the works and write
down musical notation and somehow log the pieces they cannot identify. Players
of experimental types of music which are not easily written down in standard
musical notation feel that this system is not fair to them, and that the
"experts" are only likely to identify well-known pieces of music
and have no real way to identify fringe or little-known pieces when they
show up on samples. There also has been much controversy about mis-identification
of pieces. The identities of the "experts" are not made public,
nor is there is no way for a copyright owner to know if their work was ever
sampled and then either not identified or misidentified. The money could
easily be paid to someone else without an eyebrow being raised anywhere.
Unquestionably a large amount of money is passing through this system without
any public scrutiny, and the possibilities of error or corruption are immense.
- The thousands of artists and record labels that comprise the non-commercial
outer fringes of the music business are victims of the sampling systems,
which discriminate against them statistically. Radio stations that pay higher
licensing fees to ASCAP are more likely to be surveyed in the "random"
surveys, and when performances on them are logged, they count more than
performances on smaller stations.
- It is arguable that there should be only one licensing organization,
not three, and that all performances of radio and TV use of music should
be logged and paid for by a no-frills, para-government agency. This is the
case in most foreign countries already. The computer power needed to manage
a census of all airplay is readily available at this time. The phone company
routinely logs far more phone calls than ASCAP would log in a census of
radio station playlists. However, this would mean paying money to many small
record labels and artists that is currently going to larger ones, and the
forces of change that might initiate such a system are not likely to come
from within due to the power structure within ASCAP. (Incidentally, ASCAP
just switched over from an index card system to a computer in late 1990!)
At this time ASCAP only does a complete census of music performed on network
television and major airlines, HBO, Disney on Ice, and Ringling Brothers
Circus.
- Many people feel that ASCAP spends a disproportionate amount of money
throwing parties, printing ultra-glossy materials, maintaining a staff of
expensive lawyers, renting office space in downtown New York City, when they could
be more efficient and thus pay a higher percent of their take back to the
copyright owners in royalty payments. In 1990 ASCAP paid 81% of the collected
$358 million back in royalties, and regularly has a roughly 20% "operating
budget". The rent on their office headquarters in Lincoln Plaza in
New York was nearly $4 million a year, or $283,000 a month! By contrast,
the huge United Givers Fund advertises that they only need 5% of their income
for administration! A licensing organization such as ASCAP could operate
just as easily if it modeled itself after the austere United Parcel Service's
standards of efficiency instead of the Rockefeller Foundation. (Perhaps
some of the ASCAP writers who need day jobs since they are not getting royalties,
should at least be hired as secretaries, janitors and window-washers, so
ASCAP could funnel at least some of their exorbitant costs back to their
own members who receive no royalties!)
- ASCAP's "random" taping of some 60,000 hours of radio airplay
as the basis for distributing hundreds of millions of dollars has been challenged
as having too much inherent error; that it is not provable that is it indeed
a fair and just way to compensate copyright owners for use of their work.
For example; currently, the percentage of fees paid by public broadcasting
stations is somewhere between 5.8% and 6.3% (depending on whom you ask),
yet the sampling system only samples these stations 690 hours per year,
which divided into 1500 stations comes to 27 minutes per year per station,
or about 4.5 seconds a day, and slightly more than 1.1% of the 60,000 hours.
The system is clearly topheavy and greatly favors the few who get heavy
airplay.
- The "random" system used to determine who gets how much
money is of course not random, and the exact workings of it are not readily
available. The independent consulting firm of Robert Nathan & Associates
is very much involved, and it is clear that the more money a licensee pays
per year to ASCAP for their license, the more likely it is that they will
be surveyed, and the more that a sampled performance is "weighted"
when the time comes to pay out the money. ASCAP calls this the "follow
the dollar" principle. Airplay on big radio stations is worth more
to the copyright owners than airplay on small ones. Presumably the highly
secretive Arbitron company's ratings of radio station market shares are
used as the guidelines for determining license rates.
- ASCAP's policies and the rates charged to copyright users are determined
by its 12-member board of directors (who are elected by the membership),
and votes cast in their elections are weighted according to the amount of
money paid that year. If you did not receive royalty money from ASCAP last
year, you cannot vote this year. Because of this, it is unlikely that changes
to make sure smaller writers and publishers get a fair share will come from
within ASCAP.
- Many states, (including Nebraska and Wyoming which still have them
on the books), have passed laws prohibiting the collection of music licensing
fees (at one time in the 1930's, shortly after the system was set up, there
were some 30 states that banned its operation) and Louisiana, Wisconsin,
Mississippi and Georgia currently have laws that tax ASCAP's collection,
Georgia at the rate of $1000 per county per year! Somehow, federal courts
have ruled that even if a state law prohibits ASCAP from operating, they
can still do so under federal decree. (Nebraska vs. Remick Music, 1946 and
Ocasek vs. Hegglund, 1987) There has been some recent activity in state
legislatures trying to tax and regulate ASCAP, and nothing definitive has
happened yet. Kentucky and Ohio are currently considering a gross-receipts
sales tax. Presumably ASCAP passes taxes on to the user in states that impose
such taxes.
- ASCAP can use as much of its members' money as it needs to fight court
cases to protect its interests, and it is very hard to fight their lock
on the legal system without equal amounts of operating capital. They can
appeal and re-appeal, drawing on the hundreds of millions of dollars they
take in every year in fees. They are under no obligation to distribute any
particular percentage of the money they collect.
With the explosive international growth of the multi-media entertainment industry
and its domination by American-owned copyrights, the money involved in performance-rights
licensing continues to grow, and so do the questions about the inherent fairness
of the system. ASCAP's total money collected jumped from $200 million to $350
million from 1983 to 1990. With the explosive growth of the internet, there
also remain numerous questions of how copyright royalties will be regulated
in cyberspace. Exactly what the average person or music business participant
can do to learn more about the system or to reform it is unclear. ASCAP will
probably not start policing itself, and just start paying money to starving
artists. Change will be slow, and only if groups of individuals organize and
contact their congressional representatives or appeal to ASCAP or the District
Court of New York does there appear to be much hope of change in the near future.
ASCAP is currently lobbying very hard to impose a tax on DAT (Digital Audio
Tape), and it is likely that they will find more and better ways to reach into
our pockets when we seek entertainment. The old days when everybody made their
own music are gone forever, and gone also are the old ways of paying the piper
or the fiddler for the music.
© by Harvey Reid
WOODPECKER MULTIMEDIA
5 Fernald Ave York
Maine 03909 USA
phone (207) 363-1886
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