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Fosters American Grille was charged $30,450 for playing four copyrighted songs without licenses  (Source: raleigh.uhaps.com)
Restaurant owners must pay licensing fees for copyrighted music played via stereo systems and even live bands

The recording industry can be very aggressive with matters such as music piracy and licensing rights. For instance, the Recording Industry Association of America (RIAA) spent $64 million between 2006 and 2008 to win $1.4 million from pirates, and just this year, the RIAA won $105 million from Limewire, a free peer-to-peer file sharing program. Record labels also flipped out when cloud-based music services were released such as Amazon's Cloud Drive and Google Music.

Now, licensing companies are targeting restaurants. Just like food costs and rent, restaurants must pay thousands of dollars a year to play copyrighted music in their establishments as well. If they don't, a huge bill could find its way to their doorstep, and the rules do not strictly pertain to music played through a stereo; it also applies to bands playing live. If a band covers an unlicensed song, the restaurant could be fined.

Recently, Broadcast Music Incorporated (BMI) sued a Raleigh, North Carolina restaurant called Fosters American Grille to the tune of $30,450 for playing four copyrighted songs without licenses according to WRAL News. A federal judge also ordered that the restaurant pay $10,700 in attorneys' fees. 

"We've been attempting to resolve this for two years now," said Robbin Ahrold, BMI's vice president of corporate communications and marketing. "It is our obligation when we sign an agreement with these songwriters to be diligent and do what we can do to collect their royalties."

BMI collects license fees from businesses that play copyrighted music, and delivers the royalties to artists and copyright owners. Currently, BMI licensing fees are $6,060 per year, and it sends employees into local bars to see what music is playing inside to make sure the establishment is complying with these fees. 

That is how Fosters' owners, John Powers and Ralph Nelson, were caught. Their restaurant had played Michael Jackson and R. Kelly songs as well as a song called "Aeroplane" illegally when the BMI employees made their way into Fosters. The restaurant is now closed, but according to copyright attorney Rick Matthews, Powers said the music lawsuit is not the reason Fosters closed. Apparently there were sewer and water issues in the building, and that was the reason for closing. But a $30,000+ music licensing fee probably didn't help either.

"Oh, it will close a business, you know, having a bill of that magnitude immediately," said Matthews. 

On the other hand, some restaurant owners feel that it is best to pay up to avoid such legal problems in the future. "It's very important to us to have the right music because of the atmosphere, and there are expenses that go along with that," said Royster who owns a Ruckus Pizza restaurant in Raleigh. 

Other North Carolina bars/restaurants that BMI has sued includes Alley Cat, Andrew Blair's, Sharpshooters Sports Bar, Forty Rod Roadhouse and White Owl. According to 
WRAL News, there have been a total of 38 lawsuits across the country this year alone.



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Piracy
By JasonMick (blog) on 8/12/2011 11:03:11 AM , Rating: 2
The harder the RIAA squeezes the less business they'll get. They can't beat anonymized P2P. It's prohibitively expensive to try to trace.

Are they forget that pirates are typically the biggest legal purchasers of music? They need to STFU and figure out a better business model, or perish.

Piracy is obviously illegal and immoral in many cases, but it's not always as black and white as the RIAA would have you believe. Issues like playing music in public at a bar or burning a backup copy the RIAA claims are illegal, but common sense says otherwise. Likewise, the RIAA claims pirating a track and using your listen to decide whether to buy is illegal, but that's essentially the digital equivalent going over to your friend's house and listening to a cd of theirs and then deciding whether to buy it.

I agree that pirating with zero intention of buying the music, even if you like it, is wrong and hurts musicians. However, consumers have the right to be able to fully preview what they're buying. That's the biggest problem with the current system.

The RIAA's claim that 1 track pirated equals 1 track not bought is nonsensical as often:
a) If the person likes the track they'll buy it legally or..
b) They wouldn't have bought the track legally in the first place as they don't want to spend the money... they would have listened to it from a friend or got it from a friend (a la the "mixtape").

Hopefully services like Zune Pass will eventually lay this debate to rest if they get enough traction. But at this point the enforcement is grossly out of line with reality and common sense.




RE: Piracy
By imaheadcase on 8/12/2011 11:20:19 AM , Rating: 3
The whole idea of royalties is messed up and needs scrapped (just like patent system) plain and simple.

The "laws" in place do not play well with consumers currently. What are they going to do now sue the people outside of concerts who can hear the music inside?

The sheer stupidly of MPAA/RIAA/BMI etc is what drives costs up, in turn drives people to pirate such material ( or you could argue makes stupid material).

I could go on and on about the stupid things they do, but its been said over and over on the internet. Point is Zune pass is not the fix for anything. People pay monthly fees for so much stuff now, why would they consider paying another for something they can get with other packages currently? HSI you can listen to songs online free. Most phones you can stream free to.

Face it, people this generation don't want to pay even 99cents to download a song from some band that was around when dad was young. Generation gaps are quickly changing the moral compass of how to purchase songs and for what reasons.



RE: Piracy
By fic2 on 8/12/2011 12:40:14 PM , Rating: 2
I remember a suite here in Colorado (Pueblo I think) where this same type of thing was brought against a garage because a mechanic had a radio and the other mechanics could hear it.

That is messed up.

Don't know what happened to it.


RE: Piracy
By Solandri on 8/12/2011 1:36:11 PM , Rating: 4
Yes, amazingly enough, that is considered a public performance, even though the radio station has already paid the licensing fees for public broadcast. In some places it's a bit more nuanced - if the garage plays the radio they have to license it, but if an employee brings his own radio and turns it on without the garage owner knowing then it's allowed.

The RIAA's wet dream is a device implanted on your ears which makes you to pay a license fee every time you hear a copyrighted song.


RE: Piracy
By sprockkets on 8/12/2011 3:20:16 PM , Rating: 2
It was his own music collection, not the radio. They were warned before they were fined. While I can understand the stupidity of the law, I cannot condone what he did either after being warned.

Most restaurants just use sat radio (not XM or anything) and that's licensed. But if they play their own, that's against the law. How my local gym gets away with it, I don't know or care, cause it really is stupid.


RE: Piracy
By sygreenblum on 8/12/2011 8:23:47 PM , Rating: 3
Dinosaurs.


RE: Piracy
By lyeoh on 8/12/2011 12:06:13 PM , Rating: 2
Thing is, in some countries if a restaurant only plays free music[1] it'll probably still have to pay the "protection racket"/MAFIAA or get sued due the laws etc.

[1] there's actually plenty around- not all good of course, but it's a restaurant. Which customer would care as long as the music isn't too loud or crap or inappropriate?


RE: Piracy
By Chadder007 on 8/12/2011 12:39:34 PM , Rating: 2
Does the RIAA staff only consist of Greedy Lawyers?


RE: Piracy
By alphadogg on 8/12/2011 1:12:39 PM , Rating: 5
There are other kinds? ;)


RE: Piracy
By StanO360 on 8/12/2011 1:48:47 PM , Rating: 2
That reminds me of a guy I knew, way back when, he had a computer chock full of illegal Photoshop, Pagemaker, Excel, etc.

Did anyone lose a nickel on that? No, he would never have bought it legally, never used them (probably didn't know how). A true loss is someone that pays for an illegal copy of something.

Going after restaurants? Showboating.


RE: Piracy
By alphadogg on 8/12/11, Rating: -1
RE: Piracy
By jeff834 on 8/12/2011 5:28:33 PM , Rating: 5
I knew a guy once who made an absolutely ridiculous post comparing software piracy to murder. Did anyone miss it when it was rated down? Nope.


RE: Piracy
By alphadogg on 8/16/2011 9:29:10 AM , Rating: 2
I get it. If you don't condone piracy, or at least minimize its socio-political impact, you get downvoted. Point taken.


RE: Piracy
By kmmatney on 8/12/2011 11:13:41 PM , Rating: 3
What a tool. There is no reason to pirate Excel, Photoshop, etc... There are plenty of free alternatives. You can get a 3 computer license for MS Office (Home edition) for $80. I guess it was harder to find laternatives several years ago, but there are options now, and a lot of good software can be found for reasonable prices.


RE: Piracy
By superPC on 8/12/2011 6:51:56 PM , Rating: 3
ways around this exist for personal use. netflix, hulu, BBC iplayer can handle our video needs while spottify and zune pass can handle our music needs. but for an establishment this is much more difficult. an establishment need to have a license and owned the media to playback music or video period. doesn't matter the source, be it CD, or the internet. and i don't think this is wise. RIAA or MPAA should think of a restaurant that plays their media as a free advertisement (since most people that listened to it there can't take it home).

you know what? these days i think most of us are getting fooled by the politician, lawyer, and economist...


RE: Piracy
By inperfectdarkness on 8/12/2011 11:01:46 PM , Rating: 3
proof positive that the situation is out of control. adapt or die. RIAA and MPAA has opted for "die".


RE: Piracy
By gorehound on 8/13/2011 8:02:21 AM , Rating: 1
I play in two bands up in Portland, ME.
Recently this year or it was late last year a club had to pay these assholes $10000 becuase bands will whip off a cover once in a while.So now most or all of the clubs here are being extorted by this asshole NANNY operation.
As far as Restaurants go I would not pay these fuckers a dime.
STOP PAYING BMI !!! You do not need them.Play music from Artists who do not sell out and do not joing the Traitor Organizations like BMI,ASCAP,RIAA
They take your money and you never see a dime as an artist but some will never learn.
This is the same kind of bullshit like the grandmother who was sued in the UK for having a radio in a store.So she took it out and sang to her customers.so they came in and sued her anyways.


RE: Piracy
By Reclaimer77 on 8/13/2011 9:15:08 AM , Rating: 1
Well this might be a first, but I 100% agree with everything you said.


RE: Piracy
By lowsidex2 on 8/13/2011 10:20:16 AM , Rating: 2
I better start screening my neighbors and friends before I invite them to my next backyard cookout.
Food- $25
Drinks - $45
Music - $6000

A commercial establishment I can understand but they do take it to include any airing of music the public can hear. In college dorm? Better close your windows and doors. On the lake? Better use headphones.

How about we just socialize music? Screw healthcare, everyone is required to purchase a music license or what ever it is called for $6000 a year or else be exiled to some middle east country that bans music all together.


RE: Piracy
By Lazarus Dark on 8/16/2011 10:43:07 PM , Rating: 2
I'm gunna start taking down license plates of the guys blasting rap while driving down my street and send them to RIAA, as they are obviously public performances.

Its no wonder people go postal, actually its a wonder they dont go postal more. I'd have a lot of trouble not decking a guy if he tried to claim my music playing at work required a license. We need to go down to bmi and riaa headquarters and do some London-style protesting, yknow what I mean?


"This is about the Internet.  Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off." -- RIM co-CEO Michael Lazaridis














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