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and get cut out of the division of moneys. Why would a local musicians pay BMI and ASCAP for no services? They have not been protected or represented.

• VIII. BMI and ASCAP fail to make their song list conveniently available so a venue or organization can see if the music they present violates any copyright. No one can afford to travel to New York to look at the song list by appointment. And further, they go after venues that present no BMI or ASCAP material, harassing and using the threat that someone might and they would be liable.

• IX. Our membership involved with venues and the composer-performers continually site ASCAP and BMI's harassment, intimidation, overpricing, double dipping practices.

composers.

A. This causes venues to discontinue, reduce or limit performances of

B. Composers find less employment and usage of their songs.

C. This has a chilling effect on local employment for local composers and songwriters, reduces income to performing songwriters and reduces royalties to songwriters.

D. The very law that was to protect songwriters penalizes the local, upcoming recording songwriter and removes money from them.

These are just some of the concerns of the Folk Alliance and cause us to request a full scale congressional investigation of all music licensing organizations. The system needs a major revamp in light of the complaints from across the industry and in light of new computer technology that allows better tracking and distribution systems.

The Folk Alliance, since it represents such a wide base of music and so many segments of the industry would hope that these hearings would be reopened and that the Folk Alliance would have a chance to testify. Further, the Folk Alliance would like to be at the table to work on these problems and help develop meaningful solutions that would be equitable for composers, musicians, venues, non profits, radio, facilities, and government entities.

Thank you for your consideration on this complex issue.

Sincerely,

Chris Lun, Board of Director

for the Board of Directors and Membership

North American Folk Music and Dance Alliance

POB 5010, Chapel Hill, NC 27514

919/962-3397 Fax 919/962-4453

ARTSBRIDGE

402 Juliana Street

P.O. Box 1706

Parkersburg, WV 26102

(304) 428-3988

316 Third Street
Marietta, OH 45750
(614) 373-0079

June 3, 1994

The Honorable Representative William J. Hughes

Chairman, House Subcommittee on Intellectual Property

and Judicial Administration

207 Cannon House Office Building

Washington, D.C. 20515

Statement for the Record for the Hearing of February 23, 24, 1995 on Music Licensing, BMI, ASCAP.

Representative Hughes:

organizations and

As a community arts council which represents thousands of musical artists, I would like to join the mass of individuals who are presently requesting a full investigation regarding the practices of organizations.

on

scale Congressional musical licensing

As you know, on February 23 and 24, 1994, the House Subcommittee Intellectual Property and Judicial Administration began oversight hearings on the practices of performance rights societies (ASCAP, BMI, SEASAC). Testimony at these hearings is worth your consideration as it well describes the current problems experienced by many ARTSBRIDGE associates in their exchanges with the aforementioned societies.

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Musical artists and the organizations which support them are viable part of the creative and economic community. It is our hope that a Congressional investigation will result in measures which force licensing agencies to consider the needs and capabilities of the small business and the individual performer. At the present time, fees and requirements target large, commercially successful ventures and often eliminate opportunities for those in the early stages of their careers and the presenters who choose to support them. By insisting on a "sliding scale" for participation fees, Congress will best service the needs of the creative community by encouraging growth in an affordable climate.

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"A non-profit cultural development agency serving Washington County, Ohio, and Wood County. West Virginia."

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Chairman, House Subcommittee on Intellectual Property & Judicial Administration 207 Cannon House Office Bldg.

Washington, DC 20515

STATEMENT FOR THE RECORD for the Hearing of Feb. 23 & 24, 1995 on Music
Licensing, BMI, ASCAP

We understand that congress is reviewing the way in which ASCAP and BMI conduct their business. As full-time professional musicians, and songwriters who have belonged to BMI since 1982, we would like to request that Congress launch a fullscale investigation of both these music licensing organizations. Their failure to act in a fair, equitable and efficient manner has had a detrimental effect on our business, as well as that of numerous other musicians and music industry businesses

We are songwriters, recorded by our own independent label. We could be called "minor artists" I guess, as we play locally, with some national touring. Though I do not wish to minimize our relative importance, it is important to emphasize what a very small amount of money is generated by our music, both through professional fees and licensing. Despite this fact, both ASCAP and BMI have attempted to extract money from the venues at which we play far in excess of the amount brought in by our playing. Both these organizations have used threats and intimidation against several of these places. Both these organizations have asked for outrageous sums of money, only to settle for greatly reduced amounts, implying a random fee assignment, based on the venue's response to the pressure on them, rather than a fair calculation.

The Club de Wash in Madison, Wisconsin was harassed frequently for thousands of dollars in license fees, even though the only music being performed there was ours and a blue grass band playing public domain material. The Capital Brewery Beer Garden in Middleton, WI, stopped having music altogether for a time rather than pay the excessive fees assigned them. The Cafe Carpe in Fort Atkinson, Wisconsin has also been the object of intimidation tactics to extract money from them. These are just a few examples of venues which we know about which have suffered because of the current practices of ASCAP and BMI.

All of these venues hold performances of music on the periphery of the music industry, music which does not appear frequently enough ANYWHERE in order to benefit from payments made to BMI and ASCAP by their current accounting methods, which are based on a national averaging system which rewards only the musicians whose work is performed very widely.

The point is not whether these venues should pay songwriters for the performance of music. It is the accounting and collection methods of the music licensing organizations which should be scrutinized. I appreciate you and the rest of Congress looking into this matter which has so plagued us non-mainstream musicians.

Sincerely,

Cau Bonyman

Lou Berryman

copies: Hon. Rep. Carlos Moorehead, Minority Chairman, House Subcommittee on Intellectual Property Administration

Senator Herb Kohl
Senator Russ Finegold
Congressman Scott Klug

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In my

Statement for the Record for the Hearing of
February 23/24, 1995 on Music Licensing, BMI, ASCAP

opinion, the music licensing organizations ASCAP and BMI should be examined and regulated. They have ru roughshod over musicians and promoters for years, paying royalties to the famous and ignoring lesser writers, and not only show no sense of flexibility in regard to small, non-profit events, but are not even civil to people who must deal with them.

I attend several open mics, none of which takes in much money. They either pay the fees, which are the major overhead for the event, or hold the event without paying, and worry about the "song police." The Streamliner Diner, Bainbridge Island, ceased presenting music due to pressure from BMI, as have some

WA,

Seattle cafes. Arts By the Bay, which has music as a part of an outdoor arts and crafts festival in Poulsbo, WA, restricts its performers to original or public domain music, as do sever al other events.

acoustic based

As my main interest in music is in non-mainstream
music, these organizations have no utility for me. Most of the
music I listen to, live or recorded, is either not licensed, or
is sufficiently obscure that I know the songwriter will never be
paid royalties, due to the unfair monitoring practices of
ASCAP/BMI. The radio stations I listen to play very little music
that will receive national airplay. My own songs are not licensed
because I don't think it would be of any benefit to me, and I do
not wish to be affiliated with these organizations.
(Incidentally, I have an intuitive feeling that an audit of these
organizations might be revealing. When there is that much money
and power floating around, many people in the path tend to try to
get a lot of it).

Songwriters need protection. If these groups fairly collected and distributed the royalties, with some sense of proportion and consideration for less wealthy events, and were civil, courteous and honest to deal with, I would support them. In my experience, however, they fail completely in all of these, and I hope your actions can be of help.

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