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MYTH: The licensing societies would like a negotiated solution that assists small business. FACT: Invitations to negotiate have been employed by ASCAP and BMI previously to distract Members of Congress from the real issues in this legislation and escape an uncomfortable situation the fact that 64 Members of Congress have cosponsored H.R. 789, which should justify a hearing at which small businesspeople could tell the subcommittee about the societies' heavy-handed "customer relations."

FACT:

The societies' representatives have previously told Coalition representatives that the only subject they will negotiate is rates how much small business music users will pay. The Coalition's concerns, and the legislation, are broader than rates, and include structural changes to make the system fair to all consumers of music.

MYTH: Music licensing reform legislation would be a confiscation of intellectual property and significantly reduce songwriters' income.

FACT:

Songwriters and licensing societies are, and would continue to be should H.R. 789 be enacted, compensated handsomely for every performance in a commercial establishment. Broadcast networks, broadcast stations, cable networks, cable systems or satellite systems and often two or three of them each pay amply for the very same performances that business establishments are asked to pay for again.

MYTH: Music licensing reform legislation would impose onerous, expensive and unnecessary burdens on the licensing societies.

FACT:

H.R. 789 is basic consumer protection legislation that would relieve onerous, expensive and unnecessary burdens imposed by the current system on small business.

H.R. 789 would require the licensing societies to:

• provide music consumers easy on-line access to lists of the songs licensed by each
society;

• provide consumer information that ensures price equity for small business
establishments;

⚫ resolve local licensing disputes through local arbitration, not in New York City;

⚫ offer radio broadcasters limited use licenses at rates that reflect the amount of music actually used;

⚫ respect agreements between lessors and lessees regarding music licensing liability.

H.R. 789 also would require the Justice Department, as the only party empowered to bring compliance issues to the attention of the "rate court," to report annually to Congress regarding its oversight of the ASCAP and BMI consent decrees.

A marching band plays a song during halftime of a nationally-televised football game.

Quick, how many times should the

music licensing societies (ASCAP/BMI/SESAC) be paid?

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Greater Southern Country Music Assn. Office of the Representative-at-Large

Hon. Jan Mayers-Chmn

6104 Chimney Rock
Killeen, TX 76542

House Small Business Committee

Washington, DC 20515

Dear Congresswoman Meyers:

May 2, 1998

G.S.C.M.A. represents over 2000 member/songwriters/recording artists/publishers and over 800 radio stations, both Country and Gospel/Christian/Religious in the United States and Europe. As the Rep. at Large, I am writing on behalf of our members to support the investigations against ASCAP and the allegations of the National Restaurant Association and the Religious Broadcasters Association.

Many of our members are also ASCAP members as songwriters and/or publishers. Our membors' rooords are distributed to our member radio stations who return monthly or weekly playlists to our magazine office in Florida to be compiled into our monthly charts in Country and Christian music for both the USA and Europe. In all, there are those four charts in each magazine, published monthly or bi-monthly for the past eight years.

Our members are also performers in restaurants, clubs, hotels, resorts, and churches in both the USA and Europe. Henco, our affiliation with the National Restaurant Association and the Religious Broadcasters.

What we wish to show to the committee is that as butti ASCAP members and songwriters/publishers/artists/composers; we are supposed to be receiving the royalties that ASCAP so diligently collects from the restaurants and radio stations-But we don't get any money at all!

ASCAP collects these royalties under the false pretenses that they are fairly distributing these moneys to us-the writers and publishers whose works aro boing performed. They sign us up as members under the outright fraud that they will collect our royalties and distribute them to us. In fact, ASCAP does neither. There is a clique in Tin Pan Alley, Nashville, and LA. that gets the lion's share of the funds, while our members get totally defrauded

Last year, I had as many as nine songs listed on the G.S.C.M.A. charts at one time, and two on the Europe and USA charts for 15 and 21 months GOOh. My ASCAP checks? Zero! My publisher, with over 4000 gold records, several dozen artists, and consistently at least 20 people on tho charts at each issue? His ASCAP chooks-Zero! Why? Only a small fraction of the FCC licensed radio stations are surveyed by ASCAP. They rofuse to survey our member stations or the Restaurants to see what they are playing, so that they can keep the moneys collected in the hands of their inside olique. Aftor 1995's Congressional action, they sent all membore the attached 'Member Extension Agreement' requiring us to rubber-stamp the fraud or lose our memberships.

I filed complaints with FBI offices in both Austin, Texas and New York City. Both offices consulted with the local US Attomey's offices and refused to Investigate ASCAP. You don't suppose there was too much pay-ola going on, do you? I complained to Janet Reno's office. Her letter is on file in Cong. Chet Edward's Belton, Texas with my spring 1995 detailed complaint in this matter. Janet Reno refused to investigate the largeel annual monetary fraud in the History of the United States-ASCAP! There own member financial statements reveals that they took in 173 of a billion dollars annually from the US alone! Small wonder that they can afford a huge highrise in New York City, LA, and Nashville, and to openly buy US attorneys, Federal Judges in the Southem District of New York, and the FBI.

On behalf of our GSCMA members, please take this fraud and conspiracy to commit fraud totally out of business. Please stop tho Congressional spogsorship of this fraud. Quit looking the other way, as Congress has for the past five decades, and re-invent this wheel. It's totally corrupt and decades beyond repair.

May I remind you that I amri miwʊ a statu delegate to the pärly convention, and that it is an election year.

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Ascap Alert 96
By

Donnie D. Suwell-G.S.C.M.A. Rep. at Large

Today, I received ASCAP's April 22 Member's 'Action Alert' letter, bearing the signaturo of Marilyn Bergman, Chmn of the Board. The letter calls members to action regarding Congressional Nils 11A 909 and 709, together with Senate bills & 1137, 1628, and 483. H.R.089 and 6.483 are extension of copyright bills to give copyright coverage for the inte of the author/composar plus 70 years. Flence their nicknames: Life Plus 70".

The other three bills, 1137, 1028 and 789, are remnants and rehashings of 1995's business from both the National Restaurant Association and the National Heligious Broadcasters. Both organizations are wanting ASCAP out of the picture for years of fraud, mia-distribution of funds, and gestapo-like tactics. Both organizations have large-scale support from defrauded ASAP member/composers/publishers themselves! (myself included). You may recall the Congressional hearings in May of 1995 with the National Restaurant Assoc.

The problem at hand is that many ASCAP composer members are also performers at many of the restaurants. The restaurant owners have heard our songs on the focal radio stations, seen us perform every week for years, paid the ASCAP license, never had their restaurant surveyed to see what songs were paid (fact is, ASCAP has never had any intention of fairly distributing the royalties collected), and never seen their performer/member/composerazartistá paig any of the royalties collected. Hence the fraud!

The religious broadcasters have the same scenario to report in the church scane. ThA same Artists on the radio, are the same artists playing the youth concerts and the local churches, and aren't getting paid, though ASCAP never misses collecting a royalty or license tee. Hence the fraudY

Now, back to ASCAP. As usual, they want the members to storm Congress with calls and letters wanting Life Plus 70 approved, and everything else defeated. Problem is, only a small part of the membership is in the pay clique. The rest of the members fully support the move to take ASCAP totally out of business and re-invent the wheel, when it comes to royalty distribution The Restaurant and Religious Broadcasters would fully support ASCAP if the Artists/members/composers (and their own associates who are ASCAP members) were being fairly paid. The entire basis of their complaints is: why must we be forced to sponsor this traud”

ASCAP even responded to the 1995 Congressional hearings and legislation by amending their member agreements to the effect: All members must accept the A3CAP board decisions regarding distribution were all given until

January 1, 1996 to stamp the Sanse our memberth It was very clear.

Sign ASCAP's carte blanche, or you're outa here!

As Representative at Large, I called them and told them. Pay our members (G.S.C.M.A), or I'll publish it and tell the members to call and write their Congressmen, as ASCAP members. and fully support the opposing legislation. If they can't do business fairly, and fifty years of Axperience proves that they can't and won't; then Congress, take them out of business!

Bottom line is, when I tell them I'll do something if they don't get their act honest, you can put it in the bank. I'll publish it for all the world to see, and here it is! Sic 'em folks!

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