Re: [Harp-L] ASCAP Lawsuits

[wr richards <wrrichards@xxxxxxxxxxxxx>]

On Jul 24, 2010, at 1:20pm, Ken Deifik wrote:
> > I have one question. How does ASCAP or anyone else
> > know what songs we're or weren't performed, and how do they
> > know without knowing this info which artists get paid what amount
> > of performance fees?

Radio stations (I work at one) do have to file reports.
Not every track, not all the time.
There are certain reporting periods. for the period, every track is  
reported.
It is a form of sampling.
With most playback for air automated, this is simple to do.
The rest is extrapolation, from these samples.

As for live venues (this is conjecture), I would assume the fees  
collected are distributed either evenly to all ascap/bmi artists, or  
according to a formula based on other areas where better data  
collection is possible.

This is not pulling numbers from 'thin air'. It is sampling.

If they were to try to make an actual count of all plays of all songs  
in all situations -- well, that would be expensive data to collect,  
and fees would have to be higher no?

Someone asked about the cost to a venue.

This is VERY old info, from back when I managed a restaurant in the 80s:

The place I worked paid $1500 annually (each) to ASCAP and BMI.  
Capacity 120. restaurant with beer and wine. Canned music days, live  
music (solo/duo acoustic) six nights/wk. If I recall correctly, the  
fee would not have been any different if the music was canned only.  
And, we paid a canned music service for the canned music. separate cost.

Total daily receipts at this small restaurant were about $1500  
(1980s). So, $3K per year to a small successful restaurant/bar is a  
minor operating cost.

But, for an informal live music venue that only offers music, no food/ 
beverage sales, $3K is a deal-breaker.

The unfortunate aspect is that many small, music-only venues have no  
IDEA they have to pay fees to ASCAP and BMI, and when they learn that  
they do, it is a rude awakening and often the venue has to close down.  
And that is too bad. There is a nice 50-seat venue just blocks from my  
house, and I know it is just a matter of time...

But -- I'll say it again -- thank god there is SOME kind of system for  
rewarding the original creators of the music.

Bill R.

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