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Finally, since it benefits both users and producers of intangible property so successfully, there is equally good reason why it was looked upon as the most promising model for many financial transactions over the Information Highway. course, Congressional threats to have the government arbitrarily destroy the legal foundations of the blanket license system can only diminish that promise.

THE PER-PROGRAM LICENSE

The judicial consent decrees of the major performing rights societies which are enforced by the U.S. Department of Justice and administered by the New York Federal Courts require the performing rights societies to offer, in addition to the commonly used blanket license, a per program license which provides the broadcaster with a genuine economic choice. The licensing choices currently available to all radio station owners have for years been thoroughly analyzed by economic and legal experts and have been reviewed by the federal courts and held to be reasonable. In fact, the performing rights organizations maintain that the number of stations using the per-program license has increased ten-fold since 1978; also, we are told that 10% of all commercial radio stations have embraced this license because it saves them substantial

amounts over the blanket license.

The lobbyists who are pushing for a legislative perperiod program, price-fixing remedy conveniently ignore the fact that a per-program license was never originally conceived of as being proportional to a blanket license. They also perpetuate misinformation about the nature of the blanket license, which has traditionally produced license fees that reflect average music use of the entire industry. Thus, a station's blanket license fee was never conceived of as a

ceiling price for other purposes. By using analogies which were never appropriate for pricing intangible property rights, the proponents of music licensing legislation have deceived decision-makers about the nature of the issues involved.

In looking at pricing alternatives for creative property, we should be asking: How do we preserve the financial incentives that reward music creativity? What is the most expeditious way to provide music users with access to larger and ever-changing repertoires of music? How can we insure a modicum of fair payment to music property owners yet reflect sensitivity to the music users whose programming needs are

quite diverse?

Unfortunately, the proponents of this legislation are supported by special interest lobbyists who are trying to further develop their own businesses by legislatively

undermining the intellectual and property rights granted to publishers and songwriters. It is sad to see that the method of their attack is to sow confusion throughout this Congress aspects inherent to intellectual

about the

property.

commercial

Please do not be deceived ... this legislation is

a serious threat to the copyright laws that have been tested

for many years.

CONCLUSION

Madam Chair, as a group of businesses which are wedded to the success of smaller businesses the writers of religious

music

11

we urge you to recognize the extraordinary genius of the music copyright system, and act to protect it from those groups who are attacking it for the prospect of their own financial gain. If the critics of the current licensing system succeed, the result will surely create instability industry, particularly for religious

within the music

publishers such as ourselves, but it also may make our society

spiritually poorer in the end.

PETITION FOR THE ABOLISHMENT OF ASCAP/ BMI

We, the undersigned, request that American Society of Composers and Publishers (ASCAP) and Broadcast Music Inc. (BMI) be abolished from operating and collecting money in the state of Minnesota. We feel that these organizations are not fair or ethical in their methods and that the moneys collected are not reasonable or just. We object to the representatives' of ASCAP and BMI for these reasons:

1. Harassment.

2. Unreasonably high fees causing business shutdown.

3. Failure to properly identify themselves upon request.

4. Late night phone calls.

5. Stopping of community events where music is involved.

6. Intimidating behavior.

7. Frightening appearance.

8. "Tough" attitude.

Because we feel that the musicians, the business owners and the general body of entertainers are not served by these organization we ask that they be voted out of Minnesota and a full investigation be made by appropriate government departments. Thank you.

Partial list of signers- business only:

VETERANS OF FOREIGN WARS

GILMORE WEIK POST 5252

P.O. BOX Q

PELICAN RAPIDS, MN 56572

SILVER DOLLAR BAR & GRILL

ELIZABETH, MN. 56533

KRAEMER'S SUPPER CLUB

EVANSVILLE, MN. 56326

OLD BRICK INN

BATTLE LAKE, MN. 56515

MILLS LIQUORS

NEW YORK MILLS, MN. 56567

V.F.W. POST 3289

NEW YORK MILLS, MN. 56567

V.F.W. 4020

PERHAM, MN. 56573

FRAZEE MUNICIPAL
FRAZEE, MN. 56544

V.F.W. 3922

WADENA MN. 56482

ELKS

WADENA, MN. 56482

V.F.W. POST 5252

PELICAN RAPIDS, MN. 56572

V.F.W. POST 1676

BARNSVILLE, MN. 56514

VAGT'S BARN

RT. 1, BOX 158

BRECKENRIDGE, MN. 56520

CASEY'S BAR

202 MINN. AVE.

BRECKENRIDGE, MN.56521

SONJU & ASSOCIATES AUCTIONEERS

ALEXANDRIA, MN. 56308

INSULITE INSOLATION

FERGUS FALLS, MN. 56537

GRAYSTONE LODGE

BATTLE LAKE, MN. 56515

RIVER FRONT

UNDERWOOD, MN. 56586

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