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How to Calculate the Fees alculating fees is somewhas complicated, but taking a look at a few hypothetical sirudnions can help you understand how the BMI and ASCAP fee schedules work
In the following examples, we assume thas 1.500 people paid or registered to asiend the event and thou 300 exhibicor personnel were also presens. Because half the exhibitor personnel are couued as allendees, che bial number of auenders in these examples is 1.650. The meeding is held March 30-31, 1991. Example 1
performed on the main exhibition noor during the wo days Recorded music is performed each day of the event by of the event; and on each of those same two days live music exhibitors oa the trade show floor, during a seminar in a is also performed a three separate furrions, all of which meeting room, and at an awards banquet; no live music is occur someplace other than on the main meeting noor and performed at the event
which have setups for 250 people, 850 people, and 50 For either BM or ASCAP, calculate the license fee for people, respectively; no other recorded or live music is the event as follows
performed at the event Calculate the license fee for the 1,650 (number of aliendecs) x 4.5 cents (recorded music cvents as follows: fee) = $74.25
BM: 1,650 (number of attendees) x 4.5 cenus = 574.25 Example 2
plus S195 (daily fee for live music performed on the main Live music is performed on the main exhibition noor exhibition Noor with 1,650 altendees) x 2 days = 5390 plus during two days of the event; no other live music and no $140 (daily fee for live music occurring a functions recorded music is performed at the event Calculate the someplace ocher than on the main exhibition Door with a license fee for the event as follows:
local of 1,150 attendees) x 2 days = $280. BMI: The local BM: $195 (daily fee for live music performed on the license fee for this event is 5744.25 main exhibition noor with 1,650 auendees) x 2 days ASCAP: 1.650 (number of agendees) : 43 cenus = $390
$74.25 plus $150 (daily fee for live music performed on ASCAP: $150 (daily fee for live music performed on the the main exhibition Noor with 1.650 agendees) : 2 days = main exhibition floor with 1,650 auendoes) x 2 days $300, plus S125 (daily fee for live music occurring a $300
functions someplace other than on the main exhibition Example 3
Moor with a cotal of 1,150 attendees) 2 days $250. Live music is performed on the main exhibition noor ASCAP: The total license fee for this event is 5624 25. during two days of the event, on each of those same two days, live music is also performed at a dinner party for 350 people; no ocher live music and no recorded music is
Getting Informed performed at the event Calculate the license fee for the learn about the new music licensing rules and how they will then you and events as follows
your organization. Here is a synopsis al ASAEs seminars on the topic BM: $195 (daily fee for live music performed on the November 16: The 4th Annual Legal Symposium Loews Entert Plaza main exhibition floor with 1.650 avendees) < 2 days •
Hotel Washington, D.C. A plenary session How Will he Music Royalty
huo Finally Be Resonvedt from 1120 100 1 1230 pm. Speakers include 5390 plus SAS (daily fee for live music performed u
moderator Jonathan T. Howe, senior partres, Home & Hutan u Chicago, functions occurring someplace other than on the main
James E Anderson, partner, Loomis Owen Fellman & Howe, Washington exhibition noor-that is, the dinner parties with 350
D.C; Sheldon L Landen general counsel, National Association of anicodees) x 2 days = $90. BMI: The roual license fee for
Eposition Managers, Aurora Chio, Maria Berenson, vice president and this event is $480.
general counsd, BM, New York City, and L Barry Kanel director of ASCAP: SI50 (daily fee for live music performed on the lansing. ASCAP. New York City. The Legal Symposium costs $175 bar main cahibition Noor with 1,650 avendees) < 2 days • members, 200 bar normembers $300 plus $50 (daily fee for live music performed a • November 16: Issue Briefing. Loews Entert Plaza Hotel, Quorm Room, functions occurring someplace other than on the main
Washington, D.C. An issue brieling will also be held from 2 pm. 60 4:30 exhibition Moor-that is, the dinner parties with 350
pm u he Loows Entent Plaza Hotel Howa, Anderson Berenson, and
Knied an also scheduled bo speak The cost is as per person adendoes) ~ 2 days = $100. ASCAP: The roual license fee
• Marehe 6: ASAE Spring Convention & Exposition Taj Mahal, Alantic City. for this event is $400.
The session Music Licensing Nat Only Do We Need to pay the piper. We
Now Need to pay the Composer," from 10.15 un b 11:6 in and again Example 4
hrom 26 pm. 14:15 pm Home and Abald Sunseri. CAE vice president Recorded music is performed each day of the event by d education and member serions Healtican Firencial Management exhibitors on the trade show floor, during a seminar in a Association, Chicago, will nos seus meeting room, and as an awards banquet, live music is for intamaton a begitu bastuse session claSA 2126ZS.
Clearing Up the Confusion ...Questions and Answers About Music Licensing (Consinued from page 3)
license. The BMI and ASCAP licenses are the performance original, you may want to ask them to contribute a certain licenses. Therefore, you will end up paying twice, for two amount toward ine licensing rec. And yes, the count is different righus owned by the copyright owner(s) once for 6.000.
the sync righes, which give you the right to synchronize the
music into your video, and once again for the performance 16. ZIN will lo llensing organizations know you an of what you synced in, unless you covered the performance playing copyrighted music at your meeting?
in your sync license agreement with the composer. BM and ASCAP have offices throughout the United Slases. The organizations can easily pick up a Chicago Trio 19. How long have BMI and ASCAP beea around? What is bune, for example, which lists daily the convencions and the possibility of a third or fourth enuty coming along and expositions in that city and anticipated agendance. BM asking for money? and ASCAP clip chose items. The appropriate organization ASCAP was formed in 1914; BM was formed in 1939. will call you if it hasn't heard from you. If one of the Another much smaller American music licensing group licensing groups calls you, it will inform you or your called SESAC—the Sociay of European Suage Authors obligation to have a license to publicly perform copyrighted and Composers has a small repertory of music copy. music. If you refuse to sign and then put on your event and righied in the United States. Many such licensing organiza. perform music, you have a good chance of being taken to tions exist in other countries around the world. court. If there is substancial resistance among a number of The only two groups that have expressed interest in the organizations, the licensing organizations will likely bring meetings industry have been BMT and ASCAP, which some number of “high profile" lawsuits to keep all groups license 90-95 percent of the music currendy in use. Boch in line
BMI and ASCAP have reciprocal arrangements with other There is also the ethical issue. We have m ethical licensing groups around the world, which permie BM and responsibility to comply with this law. When we have a ASCAP licensees to have access to these international mecting. we don't try to avoid any of the other laws, rules, repertories and pay royalties 10 BM and ASCAP. Those and regulations. Avoiding this law is scaling. because organizations are then responsible for making the appropricopyrighied pieces of music belong to the composers, not ale royalty payments to the international organizations
If you have a "weird piece of music that you are not
sure is contained in either BM O ASCAP's repenory, you 17. Is some music-for example, that of the Barbershop can ask either organization il it is pan of its repenory. Quartet Association-exempt from music licenslag? However, since composers jump around from one licensing
Yes. The Barbershop Quaret Association is in a unique group to another, you cannot assume that because one song situation because it has its own license that it has by an anist is in BMI's repertory, all me. The artist may negotiated. This example should be a reminder to all have licensed some of his or her works with BM and Associations. Anyone can negotiate an agreement with BMI others with ASCAP. Some composers license neither and ASCAP. You're not bound by the current agreement, society so you'd work directly with the composer or his ac which was negotiated simply to create a uniformity and her agent understanding in the meetings industry.
Remember, 100, these licenses are only for what are
called "nondramatic performances of the licensed works 18. ts synchronization of music covered under this if you want to put on a performance of all or a large part of agreement?
a musical production, you must get the license from the No. Synchronization righes permit you to record the auhor ac composer, since such dramatic performances are music in dimed relation with visual images on 1 poundonck not licensed by BM O ASCAP. of a Gilm a vidcocape. If you we making a video and want to incorporsie copyrighied music wich the action on the 20. Does this licenslag apply to meetings outside the video, you must obraio a synchronization license from the United States? copyright owner. This requires a entirely different agree No, that's a whole new can of worms. Once you ga ment from those with BM and ASCAP.
outside the United States, you are dealing with different However, you also need a performance license when you performing righus societies that have their own music play or show your video; that is in addition to the sync
(Continued on page 7)
Know Your Alternatives
( an association does not sign a licensing agreement Using musc in the public domain. Published music for with BMI (Broadcast Music Incorporated) a ASCAP which the copyright has expired is in the public domain
(the American Society of Authors, Composers, and There is no fee for music in the public domain performed Publishers), it has three options for playing music at its live. Pre-recorded public domain music (e.bn a symphony meeting: Negociace ils own agreement with the composer of orchestra's recording of Beethoven's Fish Symphony) has the music, play music from a music "library" a use music been re-copyrighied, and you must pay a fee for using iz To thai is in the public domain.
find out if a panicular song is in the public domain, you may Negotiating your owo agreement. If you choose not to visit the Library of Congress to research the song or write ho sign an agreement with BM O ASCAP. you may directly the Library of Congress Copyright Office, Aun: Reference contact the copyright owner (Les, the composer) to negociate Center, Washington, DC 20559. Requests must be in writing. an agreement that would give you the right to perform the and there is a $10 an hour fee for any research conducted music. The Internasional Who's Who in Music and Musicians Choosing music from libraries. Music libraies that pro Directory lists the composers, authors, and publishers of duce and house thousands of traditional and contemporary music, along with how they may be reached. The directory anes, offer associations another recorded-music option may be found at a local library and at The Library of How do music libraries work? A company that has a music Congress, Washington, D.C., or by contacting the directory's library hires its own composers, producers, singers, musipublishers WWWM, International Biographical Cancer, Cam- cians, and sochnical staff to produce the songs everything bridge, England CB23QP.
from symphonic to jazz to rock and pop. The music is ofien used in commercials, advertisements, and even meetings
Michel Greenspan, vice president of De Wolfe Music ...Q & A on Music Licensing Library, New York City, saya, "When a client calls, we try to
get an idea of the mood a feeling they are trying to create (Continued from page 6)
Based on that information, we'll send them an album, licenses. Some reciprocal organizations are allowing music compact disc, or something that can be transferred to an licensed outside the United States to be played in the audiotape of music that will hopefully satisfy thai mood or United States, but it doesn't work in revers. If you plan to feeling." play copyrighted music at an international meeting, ask the If an association likes a song or songs, it can sign a blanket hovel or convencion facüity for the name of the performing license that gives it the right to use the music for a specific righus society that licenses music in that country.
period of time. Each library retains the copyright on its Because so many associations are holding international music meetings, this may be the next effort someone suggests we Among the companies that have music libraries are Lackle
Associated Production Music, 6255 Sunset Blvd., Suite
2, HolywooCop3;2154613211. 21. If your conterence is a cooperative effort of several Capital Music, 1750 North Vine, Hollywood, CA 90026; associations, who signs the contract?
(213) 462-6281. Lo some instances, each of the cooperating organizations • De Wolle Music Library, 25 West 45th St, New York, NY will already have licenses, and only one licensing fee 10036: (212) 382-0220 should be required for the multiassociation event If not, Foscam, 13747 Montant Dir Suite 220, Dallas, TX the multigroup entity could get its own licensen
• Killer Tracks, 6528 Sunset Blvd., Hollywood, CA 90028; To obtain a copy of the BMI agreement, call BMI a (213) 957-4455. (800) 669-4264; To obtain a copy of the ASCAP agree • Manhatan Production Music, 311 W. 43rd SL, Suite 702 ment, call ASCAP A (800) 627-9805.
New York, NY 10036: (800) 227-1954. Special thanks to Henry Schaffe, an attorney a Howe & • Omnimusic., S2 Main St, Pore Washington, NY 11050, Huaon, Lid., Chicago, who wrote many of the answers to (510) 883-0121. the above questions, which were posed during a seminar • Promusic Income GSSS N.W. 9th Ave., Suite 303, Fonte entided "Music Licensing: Your Rights and Responsibili- Lauderdale, FL 33309, (305) 776-2070. cies," held during ASAE's Annual Meeting & Exposition • TRF Production Music Libraries, 1619 Broadway, New lag summer
York, NY 10019: (212) 265-8090.
Par to play
... Model Agreements Facilitate Music Copyright Compliance
(Continued from page 1)
than 10,000 people. For 1990, ASCAP's maximum per. specific function where live music is being played (see event fee is $4,000. "Fee Schedules," page 4).
ASCAP foes for both recorded and live music increase in "The Music Licensing Task Force worked effectively." | 1993 and each calendar year thereafter. The contract scales says Taylor. "We were glad we were able to help produce that the license fees shall be the license fees for 1992 whal wrned out to be a bean agreement that is more adjusted in accordance with any increase in the national representative of the mecuings industry."
Consumer Price Index berween October 1989 and the “I am very proud of the work done by the task force," October proceding the calendar year in question" Adjustadds Edward H. Able, Jr., CAE, chairman of the task force ments to license lees would then be rounded as follows to and executive director of the American Association of the nearest in cent for mechanical (recorded) music, to the Museums, Washington, D.C. According to Able, the result nearest $5 for live music, to the nearese $10 for the minimum is an agreement that "is fair and beneficial to all panies." foc payable, and to the nearest $50 for the marimum fee
The task force recommendations that are now part of the payable BM and ASCAP farm agreements follow.
Neither organization requires an association to document • Specific terms such as exposition, convention, and the specific songs played during its meeting. Because most meeting clearly defined i beuler explain which copyrighted music is licensed either by BMI O ASCAP types of events and functions are covered.
(neither organizacion licenses the same song). Henry • Each agreement allows the license to perform, present Schaffer, an adomey at Howe & Hullon. Lid., Chicago, or ause the nondramatic performance of all musical suggests an association sign an agreement with boch warts in BM's a ASCAP's repertory.
organizations to ensure that it has the right to use the music • Separate fees are required for recorded and live music being played at its meeuings. If an association chooses to Fees for recorded music (whether the music is played in sign both agreements, it is required to pay fees to both BMI the exhibit hall, a seminar, or boch) are based on the and ASCAP. If an association chooses not to sign an number of people registered for the conference plus half agreement with both organizations, it risks violating the the exhibit personnel. An association only pays one foc United States Copyright Low. per conference for recorded music, whether recorded Boch agreements license copyrighied music for meetings music is played a 1 or 10 functions
held in the United States and its territories, for mecuings Fees for live music played in an exhibit hall are based on held outside the United States, associations should contaa the number of people registered for the conference plus the hotels or convention centers where their meeting is half the exhibit personnel, fees for live music played being held to find out the performing society in that outside the exhibit hall (c.8., at a dinner dance) are based country that licenses music. on the number of people registered to attend each particular According to Jonathan T. Howe, the task force's represenfunction. In other words, fees for live music are charged for tative and a senior partner in Howe & Hudon, Lid., Chicago, each particular function at which the music is used (see both BM and ASCAP plan to conduce educational seminars "How to Calculate the Fees," page
for meeting planners (see also "Getting Informed," page 5). BM's music licensing agreement runs from Oct 1, For information, call ASAE M (202) 626-2798 1990, 6 Dec. 31, 1993; ASCAP's music licensing agree Task force members in addition to ASAE include the ment runs from Jan. 1, 1991, o Dec. 31, 1994. Once un Convencion Liaison Council, Washington, D.C; Professional Association signs an agreement with BMI and/or ASCAP, it convention Management Association, Birmingham, Alabama is the association's responsibility to inform BM andar Moering Planners International, Dallas, and the Religious ASCAP when its meeting(s) will be held.
Conference Management Association, Indianapolis Under BMI's agreemen, associations will be charged 4 cents per person per event for recorded music (phonographs Lapes, broadcasts, and so forth) through the remainder of Contracts to be Mailed 1990. BM's live music fees for 1990 range from $20 per day
Both BMI (Broadcast Music Incorporated) and ASCAP (the for music played to groups of 150 or fewer to S500 per day for music played for 10.000 a more people. For 1990, BM's
Arnerican Society of Composers, Authors, and Publishers) are
sending copies of their music licensing agreements to all ASAE marimum per event fee is $4,000. BMI's fees for recorded
members this month and live music increase in 1991, 1992, and 1993.
Under ASCAP's agreement, associations will be charged 15 cents per person per event for recorded music in boch Association Reportis published by the American Society of 1991 and 1992. ASCAP's live music fees for the same time Association Executives, 1575 Eye SL, N.W. Washington, period range from 525 per day for music played to groups DC 20005-1168: (202)626-73: Patricia A. Mascari, editor, of 250 or fewer 10 SS00 per day for music played for more Joseph S. Cavarrena, newsleners ediwr. ONovember 1990.
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* EXHIBIT 4
grant to LICENSEE non-exchahe Woeneo to pertorm publtety at the promiso known Pichlick.de
Maca Station in the City of
In the State of..... mul of the musical works the right to grant public performance license of which BA thell shall not include dramatic rion, the right to pertorm dramatico-musical works in whole or in substantial part the right to procent Individual works in a dramatic voting or the right to use the music licensed herunder in any other context which may constitute an exercise of the grand rights therein. Solid Woonde aloo shall not include the right to broadcast telecast, or otherwise transmit the performances Homoed herunder to persons outside of the licences premios
As word in the agreement and continuing there for for additional periodo di ono (0) year each unlese cancelled by other party at the end of haid penod or any
het na come to me that arodboromning Adid: 19.8.4. and ending. 0.41.34,1825... subsequent period, upon thirty (30) canadence writion notice by regular first-class U.S. mail to the other perty. Each one (1) year period during the form is rolerred to heroine bontract year.
Live mualdahal mean munte pertormed by musiciens, singers and other entertainers actually present and performing #UCENSEE きれいで
1 Live male and entertainment conte" shall mean all expenditures of every kind and nature whether in money or any other tonn al consideration) made by LICENSEL, or on LICENSEEbehall, for the music. The services of LICENSEE and/or non-compensated musicians or entertainers shall be included in "entertainment costs at the prevailing rate for such services in the community: Also included in entertainerant costs are surpenditures for room and board where LICENSEE is obligated to provide eccommodations to musicient and entertainer ua part of the consideration for such entertainment service
(d) Recorded music shell mwen the performance of music by means of a mechanical or electronic device or via the reception of broadcast sudio transmissione on receiving apparatus and amplification thereol for public performance. Such performenons may be reproduced only by loudspeakers located on the licensed premier
laj Dancing le permite shall mean that the owner or operator of the Mooneed promises allow dencing on a regular basis anywhere on sold promises
a' UCENSEE agree to pay to BMI for each contract year of the term hereol a license to determined in the following manner. ta) LIVE MUSIC ONLY.LICENSEE che pay the applicable amount directly oppoolto LICENSEE bracket of live music and
E costa Indicated on schedule A Doron FALL W AMOUNT W PARAGRAPH 40) (0) RECORDED MUSIC ORY: LICENSEE shell pay the applicable amount indicated on Schedule B herein under the TTHOUT LIVE MUSICFILL AMOUNT IN PARAGRAPH 40).
in MUBIG AMO MMOONODD MUSIC LICENSD shall pay both (1) the applicable amount indicated on Schedule A and in the topicable amount indicated on schedule herein under the heading WITH LIVE MUSIC. FILL IN AMOUNTS IN GRAHS 40 AND 4D) AND THE TOTAL W MURAGRAPH 4€).
PLEASE COMPLETE WHITE AALAS ONLY