ASCAP, BMI And SESAC Continue To Screw Over Most Songwriters: 'Write A Hit Song If You Want Money'

from the well-that's-just-great dept

We keep hearing from folks how the collections societies in the US for songwriters and composers, ASCAP, BMI and SESAC, are supposedly the "good guys" in that they actually give money to the actual musicians, and they aren't like the RIAA at all. But the evidence continues to be lacking on that front. In fact, it increasingly looks like they're doing a lot more harm to most musicians. Earlier this year, we noted that their aggressiveness in getting just about any small venue to pay up fees was killing off open mic nights and other sorts of venues that allowed musicians to play live. Mike points us to the news that many venues are simply giving up on live music. The problem? Well, ASCAP, BMI and SESAC are all demanding huge fees. Even the restaurants that don't bring in cover bands are being told they need to pay up, just in case a musician happens to do a cover in the middle of a wholly original set. The licensing organizations don't seem to care, they just want you to pay, just in case. When asked how they know that covered music is being played, they admit they don't:

"Basically, we don't know," said Dave Ascher, the SESAC Music Licensing Consultant who sent the letters. "To make a long story short, there's no way, logistically, for us to know whether on a day-to-day basis they're playing SESAC music."

But, just in case, you need to pay up. Of course, rather than doing that, the venues are just giving up on live music, providing fewer places for musicians to perform, hone their craft, and build up a following (and a business model).

As for the claim that these organizations help bring in money for those musicians, well, that's not seen either. We've already seen how they only give money to big name artists in most cases, because that's all they're able to track. In fact, the article talks to one musician who's upset about all the venues closing, but is still registering his songs with ASCAP. When asked if he's received any royalty check at all, the answer was no. So, how do the collections organizations respond? They tell them to become more famous:

"I'm sorry to hear that, but what I would like to tell him is that he needs to write a hit song," BMI's Bailey said.

How nice. They funnel all the money to big name artists, force venues to close so new artists can't become famous, and then when asked about giving money to those up-and-coming artists, they flippantly tell them to become more famous.

At some point, musicians and songwriters need to learn that these organizations are not doing things in their best interests at all. They're simply bureaucracies to funnel money to big names, while limiting the competition.

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TV Broadcasters Suing Songwriters' Org SESAC Over Pricing Power

from the tug-o'-war dept

Missed this one when it first came out, but Copycense points us to the news that TV broadcasters have sued SESAC, one of the collections agencies for songwriters and composers (the smallest, after ASCAP and BMI), claiming that SESAC is violating antitrust laws in how it prices music used in television shows -- especially for syndicated shows. The details are really quite fascinating. Local stations quite often run syndicated shows (such as sitcom reruns). When they buy the rights to run those syndicated shows, the package includes all of the related copyrights except for performance rights for any of the music included. Those have to be purchased separately by the broadcasters themselves. Now, for SESAC, representing the songwriters, this presents a golden opportunity. It's the only thing standing between the broadcaster and being able to show the syndicated shows -- and thus, it can ask for extremely high prices, or -- more commonly -- pressure the broadcasters into a high-priced "blanket license." Since the broadcasters can't change out the music (it's in the shows already), they generally have no choice but to go along. So, the argument goes, SESAC effectively has a monopoly position, and is abusing it.

Of course, the real "monopoly" here is copyright. At a quick glance, it certainly looks like SESAC is doing exactly what copyright allows -- but the structure of licensing for syndicated TV content allows SESAC to make life difficult for the broadcasters. So, I'm not really sure SESAC should really be faulted here, as it seems to be doing exactly what it was enabled to do thanks to overly broad copyright laws. At the same time, it also makes you wonder why the broadcasters don't go back to the TV program owners themselves and demand that they bundle the music performance rights as well, since there's more negotiating power there. So, while it does seem unfair for the broadcasters as the market is currently structured, I'm not sure it's an antitrust violation on SESAC's part. More a problem with how the industry licenses are set up, combined with copyright being way too broad in such situations.

There's also a separate interesting element to this lawsuit -- which is why it's SESAC being sued rather than ASCAP and BMI. ASCAP and BMI are both already limited due to previous antitrust fights and consent decrees against them, whereas SESAC has been more or less free to act this way. Either way, it's yet another lawsuit concerning aggressive use of copyright to try to demand as much money as possible, even for music that is a small part of an overall presentation of content.

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Connecticut Town Tells ASCAP, BMI, SESAC To Get Lost Over Royalty Bills

from the get-lost! dept

Three years ago, the town of New Milford, Connecticut got a bill from ASCAP demanding $280 in licensing fees, because the local town center sometimes will have music playing. Even at that amount, the mayor felt it was ridiculous, since it was a municipality playing music for non-profit community purposes. So the town council voted to ignore the bill, tabling it "indefinitely." As far as I know nothing else has happened between ASCAP and New Milford, but reader Bill Waggoner recently alerted us to the news that BMI and SESAC -- the other two collection societies in the US -- sent bills to New Milford as well. BMI's was a whopping $3,000. SESAC's was $1,500.

After being asked about it, BMI realized that it had made a "mistake" in calculating the bill, and lowered it to $305 (funny that they don't make mistakes in the other direction, do they?). However, the town council has told them to go take a hike. "They're not going to get that either" was the quote from council member Roger Szendy. The town's mayor, Patricia Murphy, says she's standing up for the principle of the whole thing, claiming that it's silly that a municipality should have to pay. BMI apparently says it's not going to sue, but it hopes that the city will "do the right thing."

I'm guessing that BMI (and ASCAP) realize it would be a public relations nightmare to sue a municipality, but if other cities start taking similar principled stands, you have to wonder if they'd reconsider.

Side Note: As regular readers know, it's our common practice to link to our source for information on stories. In this case, however, our main source is The News Times. I had the story about this open in my browser for a few days before getting around to writing it up. Then I discovered that The News Times locks up its content after a few days. So... I can no longer actually get to the article or send any traffic to the newspaper site. Perhaps I don't quite get the economics of news publishing, but I would imagine ad traffic from a bunch of our readers visiting their site would greatly outweigh the expected value of people actually paying $3 to read the article (yes, that's what they want). Oh well. I guess it's just their loss.

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How ASCAP And BMI Are Harming Up-And-Coming Singers

from the shakedown dept

When we talk about problems with copyright and royalty systems, sometimes people suggest that we should make an exception for the collections societies like ASCAP, BMI and SESAC that get performance royalties for songwriters, saying that since the money goes to the songwriters, rather than the labels, it's okay. However, ASCAP and the others cause significant problems. We've already discussed how they create problems, and how their views are outdated and damaging for songwriters.

However, it keeps getting worse, as they get more and more desperate to collect money -- and they're doing so in a way that harms songwriters much more than helps them.

ASCAP and BMI have been aggressively targeting venues that hold open mic nights, and demanding they pay huge fees. Many venues have given up and simply stopped allowing any musicians to play at all. In fact, one made every musician sign a waiver that they would only play original songs, and ASCAP told him it didn't matter because there was no way to know if the singers were really avoiding copyrighted music, so he still needed to pay up for a license. Those that pay up then often feel they need to charge a cover fee, so attendance dwindles.

It's basically making it more difficult for the next generation of musicians to get started, and ASCAP is so blind to this they don't even know what they're talking about. In response to the article, an ASCAP representative claims:

"What gives anyone the right to use someone else's property, even though they're not making money on it? I can guarantee you the phone company's going to charge you whether you're making money or not."

First off, this shows an ignorance of what is and is not "property." It also shows no concept of the larger picture of how using copyright to limit singers from appearing is harming artists. As for the non sequitur about the phone company... it's not clear what that has to do with anything.

It's time for musicians to start realizing that these societies do not have the songwriters' best interests in mind.

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