BMI License

[Sabrina59]

Apparently the BMI rep was by the deli again telling the owner she needs to buy a BMI license; her word was hassling.

First, this is a franchise so does she really own the business or does the owner who has franchised this chain own it?

Second, they have a "private" radio station that broadcasts whenever the deli is open. It includes a wide genre of music. The only time it is not playing is during karaoke.

Would the karaoke be covered under whatever agreements they have for the radio?

Who is responsible for puchasing the licensing ... the franchise owner, the owner of this store, or me, the karaoke host?

If I purchase the license do I need to be concerned about having the original discs? The BMI website states that any CD that you purchase is for private use only, so logic tells me that if I buy their license I am paying for the use of any song?

Any information on licensing would be helpful.

Thanks guys.

Here is the website if any are interested: http://www.bmi.com/licensing/entry/C116 ... ink=navbar

[Moonrider]

Apparently the BMI rep was by the deli again telling the owner she needs to buy a BMI license; her word was hassling.

First, this is a franchise so does she really own the business or does the owner who has franchised this chain own it?

Second, they have a "private" radio station that broadcasts whenever the deli is open. It includes a wide genre of music. The only time it is not playing is during karaoke.

Would the karaoke be covered under whatever agreements they have for the radio?

She is the owner of the "store."

She's responsible for paying the licensing fees to ASCAP and BMI.

These fees cover any and all music created by ASCAP/BMI members that is used to entertain customers, and that includes music for atmosphere and karaoke music.

Tell her the fees work out to $2.50 a day for all the music she wants. A judgment against her will be at least 100 times that much ($250/day)

If she's saying you have to pay, tell her go pound sand.

[soundtech]

this going to sound stupid whats a bmi

[Moonrider]

this going to sound stupid whats a bmi

ASCAP and BMI collect license fees from businesses that use music to attract and entertain customers. They use these fees to pay their members (songwriters, composers, and publishers) performance royalties for that music.

[wiseguy]

You as the KJ are absolutely NOT responsible for this paying this license fee. I'm a bit surprised that this fee hasn't been already paid. In my state you must pay the ASCAP/BMI fees before you can be issued a liquor license.

[Sabrina59]

Thank you, moonrider.

So she wouldn't be covered under the actual franchise owner's agreement for the radio station and televisions?

On a different note, when I was on their website last night, I completed their contract which includes a fee calculator (you know they even charge if you allow dancing, even if you do not have a dance floor!) and it worked out to $450 a year for the live bands she occasionally has, karaoke, TV's and radio. Thier minimum is $320 per year. But the representative is saying he wants $1,000.

This guy may be completely legitimate, but he just sounds like a sleezebag to me.

[Sabrina59]

Thank you, wiseguy. I think she really needs to consult with the franchise attorney, which is what I suggested to her when he first showed up.

I would think that, at the most, she would only need to add karaoke to the contract.

[jr2423]

...So she wouldn't be covered under the actual franchise owner's agreement for the radio station and televisions?

This is an interesting question. When you say original franchise owner, do you mean the company who holds legal rights to franchise the name out, or a previous individual who originaly bought the franchise for that particular store?

And ithere already a blanket agreement for all the stores between BMI and the company who owns the franchise rights?

[Sabrina59]

By franchise owner I mean the person who sells the franchises to others. You put it better, jr2423 ... the person/company who owns the franchise rights.

She has had the business for over a year, so I presume anything that the previous owner had in place has expired.

[Bigdog]

You would think there could be a posibility that the franchise might have a blanket deal with them. But I'm more inclined to think each individual location owner would bear the responibility.

One thing is you can negotiate with them and I would keep pushing the lowest number possible.

She should not ignore their notice.

I had a bar call and beg me several different times to play their place. They needed to make money because they owed them or ASCAP $25,000.
They kept throwing the letters in the trash. It went to court. They never lose by the way. They had 2 bar locations. Both bars are no longer there. They were gone shortly after that.

If you look at the application karaoke is the cheapest fee. Bands the most expensive. many bar owners stop having entertainment when they get their notices. The bar is responsible for every form of entertainment they have.

Karaoke is one price. Karaoke and DJ another. Karaoke, DJ, bands and jukebox is even more money.

Sleazeball is an independant agent. He gets a portion of what he collects. Maybe calling them directly could get a better deal, cutting him out of the middleman position.

Pay them something and they will put a sticker on the door so you don't get bothered again until next year. Cry poor mouth and bad ecomony.

It is not the KJs responibility, but and I have never done this but considered it, since the fee breaks down to $2.50 a week, will that be worth paying to keep the job? To keep peace with the owner and make you look like a good guy. I would try to deduct it on my income tax.

[Sabrina59]

Easy way to cut out sleezebag ... their website has a contract that opens in pdf. You put your little check marks in the boxes that apply and it calculates the cost for the year. They have a minimum of $320 and a maximum of $9,000 and some change. Ypur print the contract, sign it and fax it to them. If you pay within 30 days you get a 10% discount.

Since her cost works out to $450 (she occasionally has live bands) sleezebag looks to make a pretty nice chunk of change if she goes through him.

Thank you all for your wonderful information! I knew I could count on you guys!

I'll be meeting with her Monday to help her with her books (I'm a bookkeeper by day ... when working) and I'll talk to her about this as well.

Karaoke Forum members ROCK!!

[Sabrina59]

Went over to the owner's house today to help her out with her books. Was telling her what I had learned on the BMI site and here. Also explained that this isn't something that we can do for her. She is paying a monthly fee to corporate for the radio, and the TV's are under a commercial account so she wouldn't have to pay more for those either.

She supposedly talked to three other karaoke venues in the area, and only one has heard of BMI and purchased the license.

Bottom line ... she doesn't want to pay it. She says the karaoke isn't making enough money and she isn't pulling in a paycheck yet. I know that karaoke is bringing in more than the cost of the license. Last week she was talking about having us there a second night a week!

I just want to make sure that this isn't going to come back and bite me in the arse!

[jr2423]

Is her's the only franchise offering karaoke?

[wiseguy]

I just want to make sure that this isn't going to come back and bite me in the arse!

The venue is always responsible for these licenses. While BMI cannot directly do anything to you they will fine the bar and force them to comply or cease the karaoke.

[Sabrina59]

jr243 ~ Yes, her's is the only franchise that offers karaoke and live bands.

wiseguy ~ Thank you. That is exactly what I wanted to hear.