Licensing agencies crack down on businesses that play music

BEAVER, Pa. (AP) -- Mario Fratangeli thought he was setting a mood, not breaking the law, by playing Italian music in his Beaver pizza shop.
But then came a phone call from New York City informing him that he had violated federal copyright laws by playing compact discs on his shop's stereo. A representative for Broadcast Music Inc. told Fratangeli he'd need to pay an annual $250 licensing fee to continue playing CDs for his customers.
"I paid for these CDs once, why do I have to pay for them year-round?" said Fratangeli, who runs Mario's Woodfired Pizza. "I mean, people aren't coming here for my music, they're coming for my pizza."
Until contacted by BMI, Fratangeli was among the many business owners unaware of a law that protects and serves American composers, lyricists and publishers.
"Many businesses are often surprised and skeptical when representatives of performing-rights licensing organizations inform them that they need to pay to play [music]," says the Better Business Bureau in a brochure targeted at business owners.
BMI has launched an educational campaign aimed at restaurant and beverage associations, though company spokesman Jerry Bailey said, "There are a lot of businesses still unaware of their responsibility when using copyrighted music."
Citing Article 1, Section 8 of the U.S. Constitution, BMI insists the creators and owners of music are entitled to money each time their songs are played publicly.
Licensing agencies
The daunting task of monitoring every American mall, restaurant, fitness center and professional office that publicly plays music falls mainly to three major licensing agencies: BMI; the American Society of Composers, Authors and Publishers; and the Society of European Stage Authors and Composers.
Those agencies monitor Web sites and advertisements, and check with restaurant associations to learn which businesses are publicly offering music. Businesses without a license receive a barrage of letters and phone calls until they pay up.
Carole McDanel, owner of Jeffries Landing in Bridgewater, said BMI relentlessly phoned her, demanding her restaurant acquire a nearly $2,000 license to continue offering BMI-represented songwriters and composers on her jukebox and stereo. Jeffries Landing already was paying nearly $2,000 a year to ASCAP, so McDanel initially resisted BMI, until the corporation sued her restaurant in federal court.
Costly fight
"I tried to fight them, but I couldn't," McDanel said, adding that through a court settlement, Jeffries Landing had to pay BMI $15,000 in damages, on top of the nearly $2,000 annual fee.
"It doesn't seem like a fair law," McDanel said. "Copyright laws exist for a reason, I understand that. You shouldn't be able to copy a CD then sell it."
Strict enforcement of copyright laws hinders small businesses trying to offer customers entertainment, McDanel said.
"If we were a chain, like the Hard Rock Cafe, it would different, because we'd have a lot of big-money backers," McDanel said. "But it's tough being an independent business, and that's who this law hurts the most."
Response
Bailey, of BMI, said, "We try to be patient with business owners."
But if a business continually ignores BMI's letters and phone calls, the agency will send in a music-savvy snoop -- such as a disc jockey, musician or music journalist -- who will sit in that business and secretly jot down or tape-record all the copyrighted music that's played without a license. Such data then can be used in a lawsuit, and the penalties can be stiff.
Copyright owners can seek between $750 and $150,000 in damages per infringement. So, if a BMI spy claims a bar played five unlicensed jukebox songs, theoretically, the company could seek $750,000 in damages.