and sought a reduction in both blanket and per program fees which

had been negotiated on an industry-wide basis. ASCAP has

consistently rejected that approach

-

to the extent that the

stations themselves are commercial enterprises, it is unfair to permit them to exclude from their fee calculation revenue obtained from any source when other commercial stations must pay fees computed on the basis of all of their revenues. Moreover,

it would be inequitable to single out copyright owners among all other suppliers of goods and services to commercial radio stations for such treatment.

Just as important from ASCAP's point of view has been this obvious proposition: because the Amended Final Judgment in United States v. ASCAP requires that ASCAP avoid discrimination in the license fees and other terms and conditions of its licenses among similarly situated licensees, it is imperative that all commercial radio broadcasters be offered the same forms of blanket and per program licenses. In 1978, 1986 and 1991, ASCAP and committees of radio broadcasters purporting to represent the entire industry reached agreement on uniform blanket and per program licenses for all commercial radio stations. These forms of agreement were submitted to the United States District Court for the Southern District of New York in separate proceedings under the Amended Final Judgment with the result that the fee provisions were approved as reasonable and nondiscriminatory for the applicant stations. The court-approved licenses were accepted by many thousands of radio broadcasters,

including many employing religious program formats.2

ASCAP and the All-Industry Radio Music License

Committee (now known as the Radio Music License Committee) most recently negotiated new blanket and per program license terms in 1991. While those negotiations were being carried out, the religious broadcasters commenced a second proceeding under the Amended Final Judgment. Both of their proceedings have since

been consolidated and remain pending.

Over the past three years, counsel for the religious broadcasters have engaged in large-scale discovery, a costly and time-consuming process for ASCAP. Over 10,000 documents have

been produced and the applicants' counsel has now begun taking depositions of ASCAP employees. The litigation process being what it is, it is too early to anticipate when these proceedings will end. The Court will hear their arguments and ours, and decide the matter.

Thus, it is up to ASCAP to persuade the Court that the
This is, after all, what

fees it is proposing are reasonable.

users are entitled to, as required by the Amended Final Judgment that music in the ASCAP repertory should be available for use by all music users upon payment of reasonable license fees, and

2 Indeed, some of the stations that signed the forms of blanket and per program licenses approved by the Court in 1986 were also participants in the proceeding commenced by the religious broadcasters in the wake of the Alton Rainbow settlement. As a result, the Court ordered dismissal of these stations' applications from the religious broadcasters' proceeding. The Court noted that "ASCAP did not seek to impose unprecedented fees but merely sought to assess the same charges approved by this Court in the [All-Industry Committee's] proceedings."

ascap

American Society of Composers Authors

& Publishers

QUESTIONS AND ANSWERS
ABOUT THE AMERICAN
SOCIETY OF COMPOSERS,
AUTHORS AND PUBLISHERS
(ASCAP) LICENSE AGREEMENT
FOR CONVENTIONS,
EXPOSITIONS, INDUSTRIAL.
SHOWS, MEETINGS AND
TRADE SHOWS

American Society of Composers, Authors and Publishers
One Lincoln Plaza, New York, NY 10023

Area Code (212) 621-6400

Fax: (212) 873-3133

Toll Free: 1-800-627-9805

1 Why must we obtain permission for the public performance of copyrighted music at our conventions. expositions. Industrial shows, meetings. trade shows and other similar events?

2 Why are the musicians, entertainers or exhibitors at our events not responsible for obtaining permission?

3. What is ASCAP?

4 Who does ASCAP license?

5. What kind of music does an ASCAP license allow us to perform at our events?

6 Why is my organization being contactec,
ASCAP now?

7. What does the ASCAP license do for us?
8. What is the cost of the ASCAP license?
9. How do we calculate the fee due ASCAP?
10. How do we calculate the fee for mechanical
music?

11 How do we calculate the fee for live music?
12. How do we calculate the fee for live performances
in the main meeting room or on any exhibition
floor?

13. How do we calculate the fee for live performances
at other functions?

14 Can you give specific examples of fee
calculations?

15 Is there a maximum license fee per event?
16. Is there a minimum license fee per event?
17. What will ASCAP's license fees be in the future?
18 How do we report to and pay ASCAP if we pre-
sent four or fewer events per year?

19. How do we report to and pay ASCAP if we pre-
sent five or more events per year?

20. Are we liable for performances of music in the
ASCAP repertory at events held prior to January
1. 1991?

21 What if we paid license lees under the ASCAP
EXPOSITIONS or CONVENTIONS, INDUSTRIAL
SHOWS AND TRADE SHOWS license agree-
ments for events which occurred in 1989 or 19
22. Must we sign the form of ASCAP license agre
ment you are recommending?

23. What happens if we don't take an ASCAP licen
24 How do we obtain an ASCAP license?
25 What if we have any lurther questions?

1. Q. Why must we obtain permission for the public
performance of copyrighted music at our conventions,
expositions, industrial shows, meetings, trade shows
and other similar events?

A. The United States Copyright Law requires it.
Generally, under the Copyright Law. Title 17 of the
United States Code, the public performance of copy.
righted music requires permission from the copyright
owner or its licensing agent, such as ASCAP. Just as
you pay for use of other forms of property, you must
pay for the use of musical property.

a. Why are the musicians, entertainers or exhibi-
tors at our events not responsible for obtaining
permission?

A. Some people mistakenly assume that musicians
and entertainers must obtain all licenses needed for their
performances, or that they can shift liability for un-
authorized performances to exhibitors. This is not the law.
The organization primarily responsible for the event itself
is obligated to obtain permission to publicly perform
copyrighted music at conventions and similar events.
3 Q. What is ASCAP?

A. ASCAP is the oldest and foremost organization
in the United States which licenses the right to perform
publicly copyrighted musical compositions. Founded
in 1914 by Victor Herbert, Irving Berlin, and other lead-
ing American composers and publishers, ASCAP is an
unincorporated membership association of writers and
publishers of music. It is the only American performing
nghts organization wholly owned and managed by and
for writers and publishers of music.

Each of ASCAP's more than 45,000 members has
granted to ASCAP a nonexclusive right to license the
non-dramatic public performaces of their copyrighted
musical compositions. On behalf of all of its members.
ASCAP licenses the right to perform publicly all of the
copyrighted musical works in the ASCAP repertory.
ASCAP collects license lees, and distributes those fees
to its members after deducting its operating costs and
payments to affiliated foreign societies-more than 80
Cefits of each dollar ASCAP collects goes to writers and
ysic publishers. Indeed, license fees for public per-
mances are the largest single source of income for
most composers and songwars.

4. Q. Who does ASCAP license?

A. ASCAP licenses tens of thousands of music
users such as radio and television networks and sta-
tions, restaurants, nightclubs, hotels, shopping malls.
tairs, dance schools, concert promoters and others who
desire to perform lawfully the copyrighted musical com-
positions in the ASCAP repertory.

While any music user could obtain individual licenses
from each ASCAP member whose works are performed.
one ASCAP license enables you to perform all works
of all ASCAP members (and members of affiliated for-
eign societies) without complex record-keeping. The
ASCAP blanket license provides an easy, economical
means by which you may gain access to the vast
ASCAP repertory.

5. Q. What kind of music does an ASCAP license
allow us to perform at our events?

A. ASCAP's repertory contains music of every form
and style: big band music, rock, pop, country, Broad-
way, film and television, gospel, jazz, Latin, soul, sym-
phony and concert music. The ASCAP membership list
reads like a Who's Who of American music, including
Irving Berlin, Johnny Cash, Neil Diamond, Bob Dylan,
Duke Ellington, George and Ira Gershwin, Madonna,
Henry Mancini, Smokey Robinson, Richard Rodgers,
Kenny Rogers, Bruce Springsteen, Randy Travis, and
Stevie Wonder, among many others. An ASCAP license
also covers the works of tens of thousands of foreign
writers and publishers, members of over 40 affiliated
foreign performing rights societies.

If you wish to obtain a membership list from ASCAP
or to know if particular compositions are in the ASCAP
repertory, you need only write and ASCAP will respond
promptly.

6. Q. Why is my organization being contacted by
ASCAP now?

A. In 1989 and 1990, ASCAP met with representa-
tives of various industry associations and groups in an
effort to formulate an appropriate industry-wide license
agreement for conventions, expositions, industrial
shows, meetings, rade shows and similar events. The
ASCAP license agreement being offered to you today
results from months of negotiations and has been en-
dorsed and is recommended by the leading associa-
tions in your industry, including ASAE, MPI, PCMA and
RCMA as being fair and reasonable

7. Q. What does the ASCAP license do for us?

A. The ASCAP license authorizes the non-dramatic
public performance of music in the ASCAP repertory
at functions presented in conjunction with events such
as conferences, congresses, conventions, expositions,
Industrial shows, institutes, meetings, seminars, telecon-
ferences, trade shows or other similar scheduled ac
tivities of not more than fourteen days duration.

The ASCAP license authorizes live performances as
well as mechanical performances (such as by records,
tapes, compact discs, radio over loudspeakers, or by
audio-visual means such as television, video-cassettes
or laser discs). Thus, for example, your ASCAP license
authorizes the performance of live music on the con-
vention or exhibition floor, the performance of record-
ed music as part of the soundtrack of a videotape
shown by one of your exhibitors or by a speaker at a
meeting, the performance of music as part of a telecon-
ference, as well as the performance of recorded music
by a disc jockey at a dinner dance, and live music by
a band at an opening, closing or awards ceremony.
8. Q. What is the cost of the ASCAP license?

A. A license fee will be due for each convention,
exposition, industrial show, meeting or trade show you
present. The fee under your ASCAP license will vary
depending upon the number of people who attend
each event and whether mechanical music, live music,
or both mechanical and live music are performed.

9. Q. How do we calculate the fee due ASCAP?

A. In order to calculate the total fee due for each
event, first determine the fee for mechanical music, then
the fee for live music, and add them together.

10. Q. How do we calculate the fee for mechanical
music?

A. If mechanical music is performed at any time
during your event, the lee is 42€ per "attendee." The
term "attendee" means all persons who have registered
or paid to attend the event, but excludes those persons
required to produce the event, service contract person-
nel, temporary personnel, accredited members of the
media, and one-half of the number of persons serving
as exhibitor personnel.

13. Q. How do we calculate the fee for live perto.
mances at other functions?

A. If live music is performed at functions occurring
elsewhere than in the main meeting room or on an exhi
bition floor, the fee shall be as shown in the table set
forth above, provided that the number of attendees for
these functions shall be the total number of persons for
whom the rooms or areas in which such functions occur
are set up, or, if the rooms or areas are not set up for
specific numbers of persons, the fire capacity of such

14. Q. Can you give specific examples of tee calculations?

A. In the following examples, we assume that 1.500
persons paid or registered to attend the event and that
there were also 300 exhibitor personnel present Be
cause one hall the number of exhibitor personnel are
counted as "attendees." the total number of "attendees"
in these examples is 1.650

Example/ Mechanical music is performed each
day of the event by exhibitors on the trade show floor.
during a seminar in a meeting room, and at an awards
banquet, no live music is performed at the event. The

15. Q. Is there a maximum license fee per event?

A. Yes The maximum fee payable under the
ASCAP license is $4,000 per event.

16 Q. Is there a minimum license fee per event?

A. Yes The minimum fee payable under the ASCAP
license is $50 per event. However, if nether live music
nor mechanical music is performed at an event. then
no lee shall be payable under the ASCAP license for
that particular event.

17. Q. What will ASCAP's license less be in the future?

A. The license lees discussed in this pamphlet are
applicable for each event presented during calendar
years 1991 and 1992 Aller 1992. all license lees under
the ASCAP license agreement are subject to adjustment
in accordance with changes in the Consumer Price

Index.

18 Q. How we report to and pay ASCAP # we
present only four or lower events per year?

A. If you present lour or lewer events per year, you
must complete and return a report form to ASCAP no
later than thirty days after the presentation of each such
event together with payment of the applicable license lee
ASCAP will provide you with report forms free of charge

19. Q. How do we report to and pay ASCAP we present live or more events per year?

A. Il you present live or more events per year, you
must complete and return'report forms to ASCAP quer
larly (by January 31. April 30. July 31 and October 31).
specifying each event presented dunng the preceding
calendar quarter At that time you must also pay the
applicable license fee for all events presented during
the preceding calendar quarter

20 Q. Are we liable for performances of music in the
ASCAP repertory at events held prior to January 1, 1991?

A. Yes However, for those who enter into the new
ASCAP license agreement on or balore February 1,
1991, ASCAP on behall of its members, has agreed not
to press rams for the unauthonzed public performance
of ASCAP's members' music occurning at conventions
expositions, indusinal shows, meetings and trade shows
pnor to January 1, 1991.

21. Q. What we paid license fees under the ASCAP
EXPOSITIONS or CONVENTIONS, INDUSTRIAL
SHOWS AND TRADE SHOWS license agreements for
events which occurred in 1989 or 19907

A. Provided that you enter into the new ASCAP
license agreement on or before February 1, 1991.
ASCAP has agreed to apply all such license lees as
a credit toward lees you may owe under the new
ASCAPI
P license agreement in 1991.

22. Q. Must we sign the form of ASCAP license
agreement you are recommending?

A. To perform copynghted musc lawully, a license
is required. A license may be obtained directly from the
copyright owners of the works, or for works in the
ASCAP repertory, from ASCAP I you are performing
music in the ASCAP repertory and you believe that the
agreement ASCAP offers does not fit your needs be
cause your performances of music are very different
from other conventions, expostions, industrial shows,
meetings and trade shows, you have the night to apply
to the United States District Court for the Southern Dis
inct of New York to determine a reasonable license tes