Play Meter

UPDATE EDITION
Vol. 5, No. 12
July1, 1979
20 ... 30 ... 40 ... 50 million
The following is a partial transcript
of the November 9 , 1978 Agenda
Meeting of the Copyright Royalty
Tribunal. The cast of characters
involved in this particular discussion
include Tribunal chairman Commis-
sioner Thomas C . Brennan , Com-
missioner Clarence L. James , Jr .,
and Mr . E.W. Chapin , who is
corporate secretary and general
counsel for BMI, Inc .
For an in -depth lo-ok at the
jukebox copyright law, read the
coming issue of PLAY METER.
CHAPIN: Well , in other words , by
using the chart method , you can
smooth out all those peaks and
values , you'll have the whole year .
We've been accumulating chart
information since January 1978 . We
can give you , at the appropriate
time , balanced information for the
whole year 1978.
Now , they cannot give us -
ASCAP cannot give us survey
sample material for 1978 because
they haven 't even constructed the
sample yet . So , by definition , that
would be impossible .
BRENNAN: Commissioner James
wanted to interrupt and ask a
question . I said no , let him proceed
without interruption . But the Chair-
man hasn't followed his own advice .
So , I will call on Commissioner
James.
JAMES: Just going back to what you
said about the pot , the million
dollars- regardless of the size of the
pie this year , isn 't it advisable to set
up some kind of procedure , hope-
fully that doesn 't have to be changed
from year to year to year .
CHAPIN: Precisely .
JAMES: Isn 't it conceivable because
the pot is low now , but what happens
if it gets to ten million , 20 million
dollars. Would that kind of a pie
warrant a more detailed , analytical
analysis of what is being played?
CHAPIN: Not at all . The chart
system is just as valid -
JAMES: But you were explaining
costs . You were alluding to that orie
million dollars does not warrant the
cost. Now , I'm asking you in 1980,
we have to review the costs per
certificate , say we lose our minds
totally and say it's going to be $500
per jukebox , that creates a tre-
mendous pot that would conceivably
warrant that kind of cost; wouldn 't it?
CHAPIN: Well , even if it were two
million or three million dollars , the
expense would be -
JAMES : I'm talking about 20 , 30 ,
40, 50 million dollars in the pot .
Don't keep it down to one or two .
CHAPIN: Well, even , presumably
the more the pot, the expenses could
go up proportionately . It wouldn't
necessarily be a level expense .
JAMES : A survey that was adequate
to distribute a million dollar pot,
you're saying would not be adequate
to distribute a 50 million dollar pot?
CHAPIN: Because if you only have a
certain number of jukeboxes now, in
order to produce the ten million
dollar pot, a !of more jukeboxes
would have to have been registered .
JAMES : No . No , there's eight dollars
a box now . It goes up to fifty or a
hundred dollars a box-
CHAPIN: Oh , I see what you're
saying . I hope that's right . Are you
announcing that as a-
JAMES : I said , if we lose our minds
and it goes up to $105 a box .
CHAPIN: I think that would be great.
I'll vote for that .
JAMES: Of course , I'm not commit-
ting the Commission right now .
(General laughter.)
David Braun to sell Allied
Upon approval of stockholders,
Allied Leisure will be sold to a major
corporate concern . Although the
name of the purchaser is not
currently being revealed , PLAY
METER has learned that , upon
transfer of the company, David
Braun will resign as Allied's Chair-
man of the Board of Directors . The
transfer of control of the company
will be effected by the purchase of
approximately four million shares of
stock currently held as options by
Braun . Braun will still own about one
million shares of Allied.
Allied's president, Mort Mendes,
indicated that the corporate giant
purchasing Allied wished to remain
anonymous until further approvals
were cemented . But apparently the
corporation is large enough to brag of
more than $100 million in assets and
control of 27 other corporate entities .
Mendes contends that the transfer
will "make Allied a more viable factor
· than we are today ."
The history of Allied Leisure has
been a troubled one since its
inception in 1969 .
The Hialeah, Florida firm's manu-
facturing facility was consumed by
fire in 1974. But, as early as 1975,
Allied managed to restore itself as
one of the first games manufacturers
to bring solid state to the pinball
industry.
In March, 1977, Allied placed
itself under reorganiz a tion as a
chapter 11 bankrupt . Under the
provisions of that particular federal
bankruptcy code, Allied was able to
continue operating while being pro-
tected against creditor claims coming
out of the courts .
It was the one million dollars that
David Braun sunk into Allied Leisure
at the time of that chapter 11 that
purchased for him the stock options
which the new investor is buying.
Under reorganization, Braun, who
is now 71 years old, will remain with
Allied as a consultant.