Is this a actual law?

kantonburg

Platinum Member
Oct 10, 1999
2,975
1
81
I VAGUELY remember in college I had an FCC rules and regulations class and during that semester we talked about how "technically" stores like Wal-Mart, Radioshack, and even mom and pop stores are supposed to pay rights to the RIAA for playing music in their stores. It wasn't much and from what I remember it not enforced too harshly by the RIAA.

Reason I bring this up is some people I work with went to see a group this weekend that plays popular music from other bands like Metallica to George Straight, they even said they played Nelly :D. I thought out loud asking I wonder how much they pay the artists to play their music. They said they didn't have to but I belive they do. They are technically making money off of another persons material. The group charges $35 a couple to see performed.

So does anyone know what I'm talking about with the fee for music in a store? Or did I dream that :)

 

guyver01

Lifer
Sep 25, 2000
22,135
5
61
It's called Royalties... same type of fee that a radio station has to pay...

i bet stores buy their music from a distributer, and the distro pays the royalty fee..

music stores probably play the albums free, as promotions, to sell more albums.

 

yoda291

Diamond Member
Aug 11, 2001
5,079
0
0
well, a good number of dept stores get their tapes of music from 3rd party providers who do the mixing for them. i imagine any licenses would be handled by those people and not the actual store.
 

Scarpozzi

Lifer
Jun 13, 2000
26,391
1,780
126
I think it would totally depend on the band or licensing rights. Not every band is a member of the RIAA... Also, many that sell the albums are allowed to play the album to 'entice' the customers.

I don't particularly care for the RIAA because of the way they attack people for stealing music. It's music....if I can't download it from the internet, they're going to start telling me that it's illegal to record it off the radio sooner or later.
 

kantonburg

Platinum Member
Oct 10, 1999
2,975
1
81
I "believe" during our class there was an actual case where an Ace Hardware store was fined, $250 I think, for playing a CD in their store. One of the few documented cases of this nature. I'll see what I can find.
 

vi edit

Elite Member
Super Moderator
Oct 28, 1999
62,484
8,345
126
I think cover bands fall under a far different group than the music played in a store.

Can't compare the two. People don't go to walmart or a grocery store to hear the music being played. And, in the stores, no band is actually there on site playing the music.

 

AlienCraft

Lifer
Nov 23, 2002
10,539
0
0
Originally posted by: kantonburg
I VAGUELY remember in college I had an FCC rules and regulations class and during that semester we talked about how "technically" stores like Wal-Mart, Radioshack, and even mom and pop stores are supposed to pay rights to the RIAA for playing music in their stores. It wasn't much and from what I remember it not enforced too harshly by the RIAA.

Reason I bring this up is some people I work with went to see a group this weekend that plays popular music from other bands like Metallica to George Straight, they even said they played Nelly :D. I thought out loud asking I wonder how much they pay the artists to play their music. They said they didn't have to but I belive they do. They are technically making money off of another persons material. The group charges $35 a couple to see performed.

So does anyone know what I'm talking about with the fee for music in a store? Or did I dream that :)
Yes I do know what you're talking about.
Those license fees are collected by ASCAP, BMI and The Harry Fox Agency, the designated collector of royalty fees for the Entertainment Industry.

.. They take their job VERY seriously. It's their job to protect the fiduciary interests of their clients. As far as Public Performance for Profit, yes it is a compensatable(sp) act. Those fees are paid by the Agents and Venues in their blanket licensing fees that are negotiated with ASCAP, BMI or The Harry Fox Agency. Having worked for a small Commercial Sound Company ( who produced and broadcast "Business Music") in Sacramento, it was one of my jobs to go into business' and see if they were in compliance with the law. If they resisted my attempts to"educate" them and bring them into compliance, we were obliged to report them to these agencies so that the artist's could be fairly compensated.
As a performer, it is your obligation to pay the licensing fees. If you do not and get caught, the penalties can be severe money awards.
FYI.... Journey paid Steve Perry royalties for the Public Performance of songs that SP co-wrote, during their latest tours with their new singer.
Regarding sound sytems in business'. You can have a "normal" stereo system (2 speakers) in your place of business and use ANY music or programming, broadcast over the airwaves without incurring any further fees. Part of the "Fair Use" definitions. IF you increase the number of speakers above that, it is considered Added Value to your commercial enterprise, thus the artist are entitled to compensation.
 

AlienCraft

Lifer
Nov 23, 2002
10,539
0
0
Originally posted by: Scarpozzi
I think it would totally depend on the band or licensing rights. Not every band is a member of the RIAA... Also, many that sell the albums are allowed to play the album to 'entice' the customers.

I don't particularly care for the RIAA because of the way they attack people for stealing music. It's music....if I can't download it from the internet, they're going to start telling me that it's illegal to record it off the radio sooner or later.
Bands do not become members of the RIAA. Record companies do. If you are signed to a Major Label, you are under the "Protection" of the RIAA. for whatever thats worth .
rolleye.gif
Actually, recording off of the radio and over TV has been dealt with already. A small portion of the selling price of blank magnetic media , goes to a pool that is paid to the publishers in an attempt to balance the ominous spectre of Home Recording.
This royalty is the basis for some peoples arguments against any other fees on blank media and against the cries of poverty and ruin by the Major Companies.
 

CurtCold

Golden Member
Aug 15, 2002
1,547
0
0
Originally posted by: vi_edit
I think cover bands fall under a far different group than the music played in a store.

Can't compare the two. People don't go to walmart or a grocery store to hear the music being played. And, in the stores, no band is actually there on site playing the music.


Evil-Marts, Grocery stores etc, normally play songs that "slow you down", or relax you, so that you will spend longer in the store. (Psycology class)

Restaurants I've worked at used Musak, sp? Which is paid a monthly fee for usage of the music being played.
 

kantonburg

Platinum Member
Oct 10, 1999
2,975
1
81
Does this Musak company have a playlist or is this just the royalty for them to play anything they want?
 

vi edit

Elite Member
Super Moderator
Oct 28, 1999
62,484
8,345
126
Originally posted by: kantonburg
Does this Musak company have a playlist or is this just the royalty for them to play anything they want?

They have a BUNCH of different stations you can choose. Oldies music. Adult contemporary. Pop. Classical. Country. Light rock. Classic rock. Just about any sort you want. The "playlists" seem nearly endless.

I've seen them work two different ways. One way is that they are fed to the stores via satellite to a reciever that then ties into the speaker system. Kinda like how direct tv satellite systems work. And the other is basically an MP3 player that reads CD's filled with some sort of proprietary MP3 format(or a digital format that's similar) and they work for a certain number of days and then "expire" and are no longer useable.
 

AlienCraft

Lifer
Nov 23, 2002
10,539
0
0
Originally posted by: kantonburg
Does this Musak company have a playlist or is this just the royalty for them to play anything they want?
Muzak has different channels so that the merchants can choose the type of music that suits them best. Several different popular music channels, Light Pop, Rock, Country, Smooth Jazz, etc. They update their playlist from time to time to include new hits.
There are several companies providing "programmed Business Music Services" other than Muzak.
Muzak became known for re-recording the compostions they wanted to use so as to avoid some of the expenses associated with playing the original recording. When you re-record it, you only need to pay the Publishing and Songwriter royalties, not the Mechanical or Performer.