RATE SCHEDULE-CONVENTIONS, EXPOSITIONS, INDUSTRIAL SHOWS, MEETINGS AND TRADE SHOWS For purposes of computing license fees under this Rate Schedule, the number of Attendees shall include all persons who have registered or paid to attend LICENSEE's event, but shall exclude those persons required to produce LICENSEE'S event, service contract personnel, temporary personnel, accredited members of the media, and one-half of the number of persons serving as exhibitor personnel. Fees Per Event For Calendar Years 1991 and 1992 I. If "mechanical music" is performed, the fee shall be $.045 times the number of Attendees per event, based on the greater of the number of “Attendees" reported by Licensee to SOCIETY pursuant to this Agreement or the number as reported in Tradeshow Week Data Book published by Tradeshow Week or any other publication. The term "mechanical music" shall mean music presented by means other than live musicians, e.g., records or tapes. 2. If live music is performed, the daily fee shall be the aggregate total applicable fee calculated in accordance with Subparagraphs 2(a) and 2(b) of this Rate Schedule, provided, however, that the aggregate fee for live music shall not exceed $500 per day. (a) If live music is performed in the main meeting room or on any exhibition floor at LICENSEE's event, the daily fee shall be: (b) If live music is performed at function(s) occurring elsewhere than in the main meeting room or on an exhibition floor of LICENSEE's event, the fee shall be as shown in Subparagraph 2(a) of this Rate Schedule, provided that the number of Attendees for these function(s) shall be the aggregate number of persons for whom the rooms or areas in which such function(s) occur are set up, or, if the rooms or areas are not set up for specific numbers of persons, the fire capacity of such rooms or areas. 3. If both mechanical and live music are performed at LICENSEE's event, the fee shall be the total applicable fees for mechanical and live music, in accordance with Paragraphs 1, 2(a) and 2(b) of this Rate Schedule. 4. The minimum fee payable hereunder shall be $50 per event and the maximum fee payable hereunder shall be $4.000 per event, provided, however, that if neither live music nor mechanical music is performed at an event, then no fee shall be payable under this Agreement for such event. Fees Per Event For Calendar Year 1993 and Thereafter 1. For calendar year 1993 and each calendar year thereafter, the license fees shall be the license fees for 1992, adjusted in accordance with any increase in the Consumer Price Index (National, all items) between October 1989 and the October preceding the calendar year in question. 2. Such adjustments to license fees shall be rounded as follows: (a) For mechanical music, to the nearest one-half cent; (b) For live music, to the nearest $5.00; (c) For the minimum fee payable, to the nearest $10.00; and (d) For the maximum fee payable, to the nearest $50.00. DRAFT LETTER TO NAEM MEMBERS WHO WERE NOT LICENSED October 24, 1990 Dear NAEM Member: ASCAP is pleased to inform you that it has reached an agreement with major trade associations in your industry, including ASAE, MPI, PCMA and RCMA on a new form of ASCAP license agreement for sponsors of conventions, expositions, industrial shows, meetings, trade shows and similar events. This license, effective as of January 1, 1991, will authorize you to perform copyrighted music in the ASCAP repertory at all of your events. Copies of the new agreement are enclosed. Under the United States Copyright Law, public performances of copyrighted musical works, including performances during a convention, exposition, industrial show, meeting, trade show or similar event, require a license from the copyright owners of the musical works performed or their representative. As the organizer of the event, it is your legal responsibility to obtain these rights. By entering into an ASCAP license, you will be licensed for non-dramatic performances of all of the copyrighted musical works in our repertory, including performances at functions such as banquets and by your event's exhibitors. If you wish, you may obtain an individual license directly from each copyright owner whose works you wish to perform. However, an ASCAP license enables you to perform all works of all ASCAP members, as well as music in the repertories of affiliated foreign performing rights societies. Hundreds of thousands of music useṛs have considered the alternatives, and chosen ASCAP licenses. By doing so, they know that they will not be violating the Copyright Law, even unintentionally. To tell you more about ASCAP and the new ASCAP license agreement, we are enclosing a Question & Answer brochure which contains important information. Please sign and return both copies of the agreement. We will then forward an executed copy of the agreement with a supply of report forms. IMPORTANT - AMNESTY OFFER: Even though you were not licensed pursuant to ASCAP's prior Exposition license agreement, we are offering this special incentive: If you sign and return the new license agreement by February 1, 1991, ASCAP, on behalf of its members, will not pursue infringement claims for unauthorized musical performances occurring at your events prior to January 1, 1991. Should you have any questions concerning this matter, please feel free to contact us at our toll free number: 1-800-627-9805. Sincerely, L. BARRY KNITTEL ASCAP'S LICENSING OF "RELIGIOUS" RADIO BROADCASTERS In 1977, four owners of radio stations employing "religious broadcasting" formats filed a class action antitrust lawsuit against ASCAP. the action was filed at a time when ASCAP and BMI were losers in another antitrust case, CBS v. ASCAP and BMI, a decision that was ultimately reversed by the United States Supreme Court in its landmark ruling in Broadcast Music, Inc. v. Columbia Broadcasting System, Inc., 441 U.S. 1 (1979). The religious broadcasters' antitrust action, Alton Rainbow Corp. v. ASCAR, alleged that the ASCAP blanket license violated the antitrust laws. Alton Rainbow remained pending until the parties reached settlement in June, 1984, as a result of which the stations paid a substantial sum to ASCAP. The settlement applied as well to all members of the plaintiff class, defined as "all radio stations which devote 25% or more of their broadcasting day to programs originated by recognized non-profit religious organizations, churches, Bible institutes and ministers of the Gospel; sermons, theological discussions, in which the religious message or theology is the main purpose." It should be emphasized, however, that not all "religious" broadcasters members of the Alton Rainbow plaintiff class as well as those operating today are themselves non-profit organizations. To the contrary, many are simply commercial business entities who know that the religious programming format can result in a very profitable bottom line.' At the same time the Alton Rainbow antitrust action was settled, the owners of 21 radio stations applied to ASCAP for licenses under the Amended Final Judgment in United States v. ASCAP. This was significant because, during the pendency of the Alton Rainbow litigation, the religious broadcasters had held to the view that they could freely perform ASCAP's members' copyrighted music. That piratical conduct precipitated dozens of copyright infringement actions against religious broadcasters throughout the country, resulting in the broadcasters being held to be willful copyright infringers. In their application, the stations asked ASCAP to quote fees for ASCAP's two forms of licenses, the blanket and per program license prescribed to be made available for broadcasters by the Amended Final Judgment. Of course, ASCAP has always had available to broadcasters these tow forms of license: under a blanket license, a radio station pays ASCAP a small percentage of its gross revenues less certain specified deductions; under the per program license, the fee is related to revenues generated from programs using ASCAP music. Early on in the negotiations between ASCAP and the religious broadcasters, the stations focused on the non-profit nature of the suppliers of many of the programs they broadcast, A recent article in the New York Times reports that "religious programming is the third most common radio format in the country." "Christian Radio Stations, Riding a Wave of Change, Keep Their Popularity," January 10, 1994. |