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APPENDIX 6.-LETTER FROM BENJAMIN L. PALUMBO, PALUMBO & CERRELL, INC., TRANSMITTING A RESPONSE FROM ASCAP TO THE STATEMENT OF THE TELEVISION MUSIC LICENSE COMMITTEE, TO HON. WILLIAM J. HUGHES, CHAIRMAN, APRIL 20, 1994

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Enclosed is our response to a statement submitted to the
Subcommittee by the Television Music License Committee
following your hearings on this subject.

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RESPONSE
of the

AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND PUBLISHERS

to the

Statement of the Television Music License Committee
submitted to the

HOUSE JUDICIARY COMMITTEE SUBCOMMITTEE ON INTELLECTUAL
PROPERTY AND JUDICIAL ADMINISTRATION

The American Society of Composers, Authors and Publishers (ASCAP) respectfully submits this response to the statement submitted to the Subcommittee on March 11,

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1994 by the Television Music License Committee (TMLC). As we show below, the TMLC's principal arguments that ASCAP has resisted efforts on the TMLC's part to obtain "a meaningful per program license" and that ASCAP has refused to provide television stations with information as to musical works in the ASCAP repertory are refuted by both history and the reality of

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the marketplace, the manner in which music is used by local

television stations.

History

The history of the dealings between ASCAP and the owners of the nation's commercial television stations dates back to the late 1940's. When television was in its infancy, the earliest licenses issued by ASCAP were gratuitous blanket licenses. In the wake of the entry of the Amended Final Judgment in United States v. ASCAP, the owners of a group of local television stations brought the first proceeding under Section IX of the ASCAP consent decree, seeking determination by the federal court of a reasonable fee for an ASCAP per program license. That proceeding was dismissed in 1954 when

APPENDIX 7.-STATEMENT OF THE AMERICAN HORSE COUNCIL

Mr. Chairman, the American Horse Council appreciates this opportunity to submit test:mony in support of H.R. 3288, which would clarify that the incidental use of copyrighted music and video programming on radios and televisions in commercial establishments that serve food or drink is not subject to licensing fees, provided no charge is made by the establishment for such programming.

The American Horse Council is the national representative for the horse industry. It includes 194 horse related organizations representing over 1 million horse owners and breeders. An important part of our membership are owners of racetracks.

Racing and wagering is conducted in thirty-nine states and in 1992 over 64 million people attended horse races and wagered over $14 billion. The various states received over $725 million from this activity in 1992.

Most of our member race tracks provide food and drink as well as racing. Dining at restaurants while attending the races is a major source of revenue, as well as a major marketing tool for tracks to generate repeat customers. It has become an industry practice over the past several years to provide small television sets for each table in the restaurant. The customers can view the horses warming up on the track, going to the gate and racing, as well as seeing the betting odds on these horses and the amounts being bet in the various pools and ultimately the prices for the winners. Commentary of local handicappers from on-track studios is also part of the on-track program.

We think it fair to say that patrons do not come to the track to listen to background music or watch commercial television. The television sets are clearly in the restaurant as a tool or aid

for the patron in helping the patron enjoy the races.

Despite the obvious purpose for these television sets, some of our member tracks have been approached by the performance societies insisting that blanket licenses be entered into based on the number of television sets at the racetrack.

Passage of the Thomas Bill, H.R. 3288, would clarify the exemption in the existing law and would make clear that incidental use of background music and or video programming in restaurants where there is no charge for the transmission is not compensable. It would also remove the ability of the music performing societies to pressure these businesses over incidental use and help reduce litigation thereby freeing up court time for more substantial matters.

We urge the Subcommittee to vote favorably on H.R. 3288.

March 9, 1994

APPENDIX 8.-LETTER FROM JOHN B. BURCHAM, JR., EXECUTIVE DIRECTOR, NATIONAL ASSOCIATION OF BEVERAGE RETAILERS (NABR), TRANSMITTING A POSITION PAPER BY THE NABR, TO HON. WILLIAM J. HUGHES, MARCH 16, 1994

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Please find enclosed a position paper presented by the National Association of Beverage Retailers (NABR). The position paper supports H.R. 3288 which was a subject of discussion at the Oversight Hearing before the Subcommittee on Intellectual Property and Judicial Administration. House Committee on the Judiciary. NABR supports the exemption of music licensing fees for incidental use of radio and television broadcasts in retail hospitality businesses.

I am confident that you will find the paper's content informative and I welcome any comments or questions you may have with regard to this or other issues.

Sincerely,

John B. Burcham Jr.

John B. Burcham, Jr.
Executive Director

5101 River Road, Suite 108, Bethesda, MD 20816-1508
301-656-1494 fax 301-656-7539

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