Aug 31 2007
Whistling Your Favorite Tune in Public Could Cost You a Lot of Money
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THE MUSIC INDUSTRY CONTINUES TO DEMAND ROYALTIES FROM CAFES and RESTAURANTS
Music licensing companies are continuing now actively attempting to collect more fees from hotels, gyms, restaurants, and nightclubs - that play commercial-free or live music of copyrighted songs.
The fees collected are paid out to affiliated songwriters, composers and music publishers in the form of royalties.
Six months after opening their gourmet coffee shop one of our readers decided to offer live music on Friday and Saturday nights.
The performers, normally duos, mainly covered songs written and made famous by other musicians.
There was no cover charge, no pay for the musicians, no limit to how long patrons could sit on a couch with their coffee, playing chess and enjoying the music.
Then a few months later, a music industry representative started calling and sending letters saying they were in violation of copyright laws. The fee to continue the music was $400 a year.
“At the time, the shop was losing money, so we had to break it up into payments,” said Laurie Hall. But
Six months later, other music copyright companies began calling and demanding money. Some days they received three or four phone calls from each company.
Finally, unable to afford the fees, they had to put off those who did not play original music — and tell them they would not be allowed to continue performing.
Some restaurants report they are paying up to $3,000 a year .
One small cafe owner we spoke to insists that her coffee shop makes no extra money when the musicians play. Unlike a bar where patrons may imbibe several cocktails during the course of the night, her customers normally order one cup of coffee per performance.
Owner who have refused to pay find themselves paying anyway, in the form of fines.
“The law stipulates damages ranging from $750 to $150,000 for each song performed without proper authorization,”
And in no way do the songs have to be performed live, even those played on a on radio, has been enough to elicit calls for royalties.
Be very, very careful what you and your team whistle, hum or tap out with their finger tips next time you are happy.
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