ASCAP Needs More Money To Pay Musicians

July 31st, 2007

Musicians have it made. Once they write a song, they can just kick back and watch the money roll in forever. Between RIAA, BMI, ASCAP, CRB and all the other companies collecting so much money for performance royalties, musicians must make a fortune. So why is it that so few musicians are rich? Where does all the money go? ASSCAP thinks there isn’t enough money being paid to musicians, so they’re out to get more.

ASCAP has filed 26 lawsuits against bars in cities across the US for performing copyrighted music without permission. The jukebox/CD/DJ is in violation now.

As Brooklyn Vegan so succinctly stated:

Last I checked, all the record labels wanted DJs to play their stuff so bad, they were giving it to them for free.

Well, I guess those days are over. Marketwire reported:

In each of the cases filed today, the business establishment has publicly performed the copyrighted musical works of ASCAP’s songwriter, composer and music publisher members without obtaining a license from ASCAP to do so. ASCAP reached out to each of the establishments repeatedly over a significant period of time before taking legal action. In every instance, the establishment refused to obtain a license, but continued to perform ASCAP members’ music without permission, resulting in the filing of the infringement actions.

ASCAP Sues Nightclubs Over Performance Licenses

^^Uh, who creates the music?! wtf?^^

Is your neighborhood nightclub among the criminal violators?

Salty Dawg II, Tucson, AZ
Foxfire Room, N. Hollywood, CA
Pelican Isle, Huntington, CA
Skylark, San Francisco, CA
Snake Pit, Denver, CO
Humphrey’s East, New Haven, CT
Kashmir, West Palm Beach, FL
Tequila Willie’s, Melbourne, FL
Sanctuary, Atlanta, GA
Rome Street Tavern, Carrollton, GA
O’Hare Gaslight Club, Chicago, IL
Club Paradise, Angola, IN
Registry, Crown Point, IN
Red Maple, Baltimore, MD
Holiday Inn Southfield, Southfield, MI
Razzles, Westland, MI
Janae’s West, St. Louis, MO
Cody’s Chinese Bistro, Raleigh, NC
Manhattan on Pearl, Nashua, NH
Fusion 215 (f/k/a Nest), New York, NY
Montage Grill, Rochester, NY
Hiro Ballroom, New York, NY
Doghouse Bar & Grill, North Royalton, OH
Nuno’s Bar & Grill, Austin, TX
Oakley’s, Waco, TX
Ibiza Dinner Club, Seattle, WA

If anyone here is involved in “the biz” I would love to know more about this. As one commenter on Brooklyn Vegan pointed out (but I can’t tell if it’s true or not) ASCAP collects money from such licenses and distributes them to the top artists. They don’t actually keep track of which artists are played in each bar and pay the actual artist. So, while these clubs might be playing metal and rock music, the money from their license is probably going to Britney Spears and Justin Timberlake (or something like that). If anyone knows more info or knows better, please comment!

One of the most interesting things I read was this description of ASCAP, also from Marketwire:

Nearly 90% of the license fees ASCAP collects are paid as royalties directly to songwriters, composers and music publishers. The balance covers ASCAP’s operating costs, which are among the lowest in the world for a performing rights organization, and the lowest by far in the U.S.

More than 10% goes to cover ASCAP’s operating costs - which are the lowest by far in the U.S… It’s what, a minimum $10K USD per year to purchase a license? 10% of that goes to ASCAP ($1K), but if they were BMI or HFA they would keep far more? 15%? 20%? Yikes. Sounds like audio real-estate - the business you want to be in, but not the business you want to tangle with.

Links With More Info About Clubs And Performance Licensing:

Marketwire has the most in-depth report including which establishments are being served
ASCAP’s FAQ page about licensing
Idolator’s reports that the Hiro Ballroom (NYC) is being sued by the “RIAA you’ve never heard of.”
Brooklyn Vegan’s report on this issue
How Music Licensing Works from How Stuff Works.com

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