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Issue: 1978 April 07 - Vol 4 Num 7

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In the movie, "The Graduate," there is one interesting exchange between two
characters which I think accurately describes the federal government's new
jukebox copyright law.
Benjamin, who is "the graduate," tells his father that he has finally decided to
marry his childhood sweetheart and that he is leaving that morning to set the
date. But his father, in quizzing Benjamin about his plans, soon learns that his
son's bride-to-be doesn't want to marry him, doesn't love him, and, in fact,
detests everything about him.
To this Benjamin's father asks, "Don't you think this whole thing sounds sort of
half -baked?"
And Benjamin replies, "Oh, no, Dad, it's fully-baked."
The federal government's "fully-baked" jukebox copyright law, on closer
inspection is beginning to look as laughable as Benjamin's scheme to wed.
From the outset one should note that, in this matter of the copyright law, the
federal government is acting as a private collection agency for the performing
rights societies-ASCAP, SESAC, and BMI. This is in marked contrast to the
federal government's usual way of doing things. Normally the money Uncle Sam
collects is not specifically earmarked for a particular project but instead is given
to the national treasury and from there disbursed to the federal claimants. So a
collection that passes directly from one group of people to another group of people
with the federal government acting as the intermediary certainly puts the feds in
a strange position. And since it is a marked departure from Uncle Sam's usual
way of doing things, it is also very probable that this hybird form of tax collection
may be fraught with difficulties.
Right now, the greatest of those problems is, quite obviously, the lack of
response from jukebox operators.
As of the second week in March, only about 1,400 operators had registered
their jukeboxes under the new law. This is in sharp contrast to the estimated
8,000 operators in the country.
Collections, which were estimated to be around S4 million, are now at a measly
5600,000, and that's about what it's going to cost the feds to run their end of the
program. What all this means is that as things stand right now the performing
rights societies will probably be getting a "Sorry, Charlie" message when it comes
time to share in the receipts. There'll be nothing left after Uncle Sam gets his cut.
In other words, the jukebox copyright law is becoming still another
governmental boondoggle.
The starry-eyed people at ASCAP, SESAC, and BMI who have gone wishing
on a star with visions of money, money, money dancing in their heads didn't
realize that they had joined forces with an organization not renowned for its
ef.ficiency but rather for its inefficiency. What ASCAP and Pals are just beginning
to realize is that when you win a war and the federal government is on your side,
you don't win, the federal government wins. You're just taken along for the ride .
And ASCAP and Pals have been taken along for a ride.
The problem seems to stem from the fact that the federal government hasn't
allowed enoujth time to track down all of the nation's operators. As I wrote in an
article in the February issue of PLAY METER (and, yes, I know it's
journalistically uncouth to quote yoursell, but what the heck), .... .it seems highly
unlikely that [the federal government 1 has been able to locate all the jukebox
operators inside of the 31 days of January."
You see, the federal government is only now beginning to realize how
shortsighted it was when it made the timetable for the law's compliance. Our good
friends in Washington must have figured they could just swoop right down and
pick up the authoritative list of all the nation's jukebox operators in one month's
time. Their reasoning must have been something along these lines: "If we can put
a man on the moon, we should certainly be able to-"
Little did anyone (that is, anyone outside of the coin machine industr y) realize
how big a task the feds were taking upon themselves. For instance, there are
countless location-owned jukeboxes out there that no one is ever going to be able
to find simply because the owners of these jukeboxes have no connection
whatsoever with the coin machine industry.
Of course, there are many bona fide operators out there who still haven't
registered their boxes. They know about the law, fully intend to obey it, but are
expecting the federal government to take the first step. At least, this is what I
have been picking up from operators I've talked with across the country. Most
operators, it seems, have assumed that the federal government has all their
names, and that the reasoD they haven't gotten their JB Forms yet is that the
mail (good 01' Uncle Sam again) is late as usual.
But this is simply not the case with the federal copyright law. The federal
government is not going to contact you. You have to turn yoursell in. And
apparently that point hasn't been made sufficiently clear.
How To Turn YourseH In
First of all, you should know that there is no penalty for late filings. I've
checked this with the chief of the licensing division at the Copyright Office, and
she assures me that they aren't even considering penalties at this time for late
filings . They just want to get this registration matter over with.
H, as of yet, you haven't turned yourseH in, you should write the Copyright
Office at the following address:
Licensing Division
U.S. Copyright Office
Library of Congress
Washington, D.C. 20557
H, however, you don't want to take your chances with the postal service, you
can call the licensing division at (703) 557-8730 or at (703) 557-1997.
Whether you call or write, tell them you want a JB Form.
Then, fill out the JB Form (note here that if you have the manufacturer's serial
number, you don't have to list anything under the column marked "Other
Identifying Information"). When you return the form to the Copyright Office,
enclose a payment of eight dollars per jukebox per year. This payment must be in
the form of a money order, cashier's check, or certified check; personal or
company checks are not acceptable.
Finally, when you get the certificates, you must place them on your jukeboxes
within ten days of their issuance.
To File Or Not To File
I'm sure many operator s are still debating whether or not they should file.
After all, they think, the law is unfair. Besides, they reason, if the federal
government wants the money, it should eaIl me, not vice versa.
But if you want it straight from PLAY METER, here it is-register your
jukeboxes. Don't play around with this law, you're the only one who'll get burned.
There are several reasons for saying this.
First and most importantly, you are leaving yourseH open to multitudinous
lawsuits on each jukebox you fail to register (each record on each jukebox can
become a separate copyright infringement). Although the federal government
may be lackadaisical in this matter of jukebox registration, you can rest assured
that ASCAP and Pals will be vigorously searching out violators of this law since
they have such a large stake in it. So operators who think they are getting away
are only fooling themselves; they are only leaving themselves open for the
headhunt that will soon follow.
Second, the jukebox law does afford operators a chance to establish credibility
for themselves. And that is much needed if we are ever going to change the
antiquated and unenlightened view most governmental bodies have towards the
coin machine amusement industry.
Third, if the collection base and the operator response remains as low as it is
now (and the performing rights societies end up with nothing gained from an
eight-dollar-a-box assessment), then there's a good chance we'll see the
legislators giving ASCAP and Pals a more attentive ear when the jukebox law
goes up for review in 1980. "A more attentive ear" can be construed as hiking the
per-jukebox-assessment and possibly requiring operators to list additional
information.
Of course, you realize this is illogical, since a tax increase and further
complications of the JB Form would only make filing even more burdensome and,
in fact , would only penalize those operators who have been paying all along. But
then you should remember that although you can blame the government of being
wasteful , inefficient, and perhaps even stupid, you certainly cannot accuse it of
being logical. Arguments from A.M.O.A. or any other jukebox operator group
would suffer with the legislators. Don't forget ASCAP and Pals just want their
money, and they don't care if it comes from 1,300 operators or from 8,000
operators. They just want their money.
A Possible Remedy
One thing which I think should be considered the next time around (in 1980) is
for the federal government to get out of the private collection business. H they
think ASCAP and Pals deserve royalties payments, let that money come out of
the national treasury. This way neither the operators nor ASCAP and Pals would
have to worry about low collections. And the federal government could be left to
deal with the insatiable money demands of the performing rights societies. The
alternative is to give ASCAP and Pals and the feds the leverage to tax an
industry right out of existence.
I guess it'll always be this way until those people in Washington learn that
everyone can't have everything he wants, that, in fact, Uncle Sam can't be all
things to all people.
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