OPERATING
In-fighting between ASCAP, BMI
at core of CRT requirement-- Brennan
In the latest developments sur-
rounding the compulsory jukebox
copyright law , U.S . District Court
Judge Aubrey Robinson , Jr. of the
District of Columbia turned down a
request by the AMOA that a hearing
with witnesses be held on the
AMOA's suit against the Copyright
Rovaltv Tribunal (CRT) .
The CRT is the federal agency
which will decide how the royalty
collections paid by jukebox operators
will be divided up among the three
performing rights societies- ASCAP ,
SESAC , and BMI - which hold the
rights to the songs played on the
jukeboxes .
Though Judge Robinson turned
down this latest AMOA request , the
AMOA suit is still pending , and a
decision may be forthcoming this
month .
At presstime , AMOA Counsel
Nicholas Allen was scheduled to file
his legal brief showing why the court
should grant a permanent injunction
disallowing the CRT's controversial
September 6 ruling . The CRT had
until December 27 to state its case in
a legal brief on the matter.
According to the CRT's Septem-
ber 6 judgement , operators are
required to supply the CRT with lists
of their jukebox locations in order to
remain in compliance with the
copyright law . But the AMOA and its
member operators challenged that
decision with a lawsuit saying that
location listings are confidential
business information and that a
requirement forcing their disclosure
constitutes undue governmental in -
terference and harrassment .
In an interview with PLAY
METER in October , CRT Chairman
Thomas Brennan explained the
reasoning behind the controversial
ruling . He said that the ruling had
been made at the request of ASCAP
which had argued that it would lose a
large percentage of the royalty
collections due it if the CRT based its
decisions as to how to distribute the
money solely upon the music charts
provided in the trade magazines.
ASCAP , he said , argued that it
would lose the royalties for its older
hits . Notably , AS CAP owns the
rights to most old records (which are
on jukeboxes) , and this is not
reflected in music charts of current
8
hits . Because of this assertion , the
CRT ruled that the performing rights
societies would have to justify their
claims for royalties by samplings of
jukebox locations across the country .
And towards this purpose , the CRT
ruled that operators supply location
lists to facilitate this sampling .
Brennan went on to say that BMI
(which sided with the AMOA in
arguing in favor of the music charts
being the sole determining factor)
apparently feels it stands to gain a
larger share of the royalties if the
music charts are used because it has
gained a larger percentage of current
hits than in years past.
Consequently , operators have
been brought back into the copyright
law controversy to supply the
additional information and thus to
settle the in -fighting among the
performing rights societies as to how
the royalties should be divided . It is
exactly this point which is at the ro01
of the controversy .
In his earlier decision (October
30) , Judge Robinson rejected a plea
by the AMOA for a temporary
restraining order and a preliminary
injunction while the merits of the case
are still being considered . But Judge
Robinson also ordered the CRT to
keep the location lists confidential at
least until the court case is resolved .
Then on November 22 , the
AMOA broadened its attack on the
CRT by raising some constitutional
questions . One of the charges which
was added to the original AMOA suit
said that the CRT was "improperly
organized in the legislative branch of
government ."
Allen told PLAY METER that this
challenge is baSically a technical one .
But he explained that the challenge
on this point was that the CRT was
given executive powers , but that it
had been formed bv the legislative
branch of government. If proved , this
would be a violation of the precept of
th e separation of powers .
Allen added that a second consti-
tutional issue which was raised
November 22 was that the "require -
ment of location lists cuts across the
jukebox operators' rights to due
process ." He said that the AMOA
would argue that operators' constitu-
tional rights of privacy and undue
governmental interference were be-
ing violated .
Although the new CRT ruling is
still being weighed in court , jukebox
operators are still expected to comply
with the location list requirement.
An operator who does not comply
with this latest ruling is subject to
having his jukebox licenses voided
and to being sued for copyright
infringement on each of the records
in the phonograph .
NAMA publishes results
A detailed nationwide analysis of
wage rates and employee benefits in
the vending and foodservice man-
agement industry was published last
month by N.A.M .A . (National Auto-
matic Merchandising Association) .
Based on returns from 310
member firms , the survey was
conducted in May 1978 and is being
mailed to all member firms free of
charge . The report and data will not
be available to non -members , said
Joann James , N.A .M.A. assistant
secretary-treasurer and director of
the statistical department.
She said that 62 of the partici-
pating operator firms are unionized
while 248 are not. Respondents are
fairly distributed in all regions of the
United States and represent the
smallest as well as the largest
operator company members of
N.A.M.A.
The survey covers wage systems ,
rates and hours worked for route
personnel , mechaniCS , commissary
workers , location hostesses , and
warehouse personnel. Details are
also given about fringe benefits such
as insurance programs, vacations ,
pension plans , and social events .
Ms . James said similar surveys
have been conducted by N.A.M.A.
in 1970 and 1974.
N.A.M .A. has about 2,300 mem -
ber firms , including operating com-
panies , manufacturers, and suppliers
of products and services .
PLAY METER , January, 1979