Play Meter

Issue: 1980 June 01 - Vol 6 Num 10

UPDATE EDITION
Volume 6, Number 10
June 1, 1980
Rate review hearings begin
Hearings have been given by the
Copyright Royalty Tribunal on 1980
jukebox royalty rate adjustments ,
and a recommendation from that
Washington , D. C . panel may take
much of the summer to be made
final.
Any adjustment of the present $8
per jukebox annual royalty fee would
stand for the next 10 years - unless a
cost-of-living
arrangement
is
included, as the performing rights
societies advocate.
"Right now , we're sort of in the
middle ," said an attorney for the
AMOA , which argued for keeping
the royalty rate at the original $8 per
machine per year .
Both the AMOA and the perform -
ing rights organizations ASCAP and
BMI have presented statistical
evidence as well as testimony to the
CRT for their cases .
ASCAP stands for a $70 per-
jukebox fee . A spokesman, who
declined to be identified , said this
amount was based on studies of the
present licensing fees for taverns and
night clubs, piped-in music ( "mech-
anicals") , and the amount of jukebox
operators' fees paid overseas to
performing nghts societies.
The $70 per box proposal is "the
low end of the range" shown by this
study , said the source connected to
ASCAP.
However , BMI suggests a $30 per
box fee to the CRT, with this rate
subject to changes in the consumer
price index over the coming decade .
The next fixed rate would be
determined in 1990 .
ASCAP also advocated the cost-
of-living added scale .
Nick Allen, attorney for AMOA ,
said the timing of the eventual rate
adjustment was "speculation" at mid-
April, when hearings were scheduled
to take at least one more week .
One witness scheduled to testify
for the jukebox operators' case said a
survey of operators by Peat , Mar-
wick , Mitchell and Company shows
"the true picture of the industry at
this point." The sampling of some
400 operators was presented to the
CRT as showing the phonograph in-
dustry hard-pressed, having fewer
collections over a period of years. A
continued $8 per-box rate, the
AMOA would contend, represents a
greater percentage of receipts going
to royalties under these conditions .
AMOA President Bob Nims in
New Orleans commented to PLAY
METER that the economic survey
was "more than adequate" by
sampling standards held by the Peat,
Marwick, Mitchell CPA consultants .
With more than 450 questionnaires
mailed in, response was made by 15
percent of those contacted , which is
considered a favorable rate of
response, and these came from 48 of
the United States , Nims said.
Continued on page 2
Stern Electronics is tilting at the college set with its new Ali pin . At the Play
Meter Show in New Orleans, Dr. Alton Ochsner, past president of the
American Heart Association, tried the game [ above] . Right-to-left are
Gary Stern, whose firm provides 20 of the games as prizes in campus
fundraising for AHA ; Phil Philpot, AHA youth chairman; and Gerry
Taylor of National Lampoon, co-sponsor of the campus funds drive.
Update
Edition
Volume 6, No. 10
June 1, 1980
. . . . . . . . . . . . . . . . . . . . . .
Staff
Publisher and Editor:
Ralph C. Lally II
Editorial Director:
David Pierson
Managing Editor:
Ray E. Tilley
International Editor:
David Snook
Editor, Coin Slot
Correspondents:
Pat Matthews
Roger C. Sharp
Tony Licata
J .W. Sedlak
Dick Welu
Charles C. Ross
Art Director:
Katey Schwark
Administrative Assistant:
Valerie Cognevich
Circulation Manager:
Renee' Pierson
Classified Advertising:
Valerie Cognevich
Staff Illustrator:
Mars Walker
Advertising Manager:
David Pierson
Continued from page 1
"AMOA on behalf of the jukebox
industry has really endeavored to do
anything possible. In fact , they are
the only people involved, proponent
or opponent, trying to meet the
criteria set forth by the CRT' to
present an economic case in the rate
review . according to Nims .
The matter was up to the
five -member CRT to adjudicate .
CRT Commissioner Thomas Bren-
nan said the jukebox rate review,
which began April 2 , would close
evidence April 22. A recommen -
dation on rates would come some
weeks later , and rebuttal would then
be allowed by either party when the
rate figure is proposed by the CRT's
findings .
Its recommendation would be -
come effective 30 days after the
CRT's decision unless a challenge is
issued by any party to the royalties
matter .
On the performing rights societies'
side, a battery of attorneys repre-
sented the case for higher rates. The
legal staff included Bernard Korman ,
general counsel for ASCAP , and
BMI Attorney Charles Duncan.
Meanwhile , barely one third of
some 330,000 jukeboxes in the
U. S. were registered for licensing .
As PLAY METER has reported
(UPDATE , February 1) , the jukebox
location lists were not used to
distribute 1978 royalties since the
performing rights societies agreed to
shares of the fees without dispute.
Witnesses before the CRT :n April
included two economists testifying
for the performing rights societies.
In the case coordinated by Nick
Allen , the AMOA's witnesses in -
cluded Michael Giblin , director of
special services for Rowe Interna -
tional ; former AMOA President Don
Van Brackel , and operators Mrs .
Leoma Ballard of West Virginia ,
Jimmy Watkins of North Carolina.
and John Strong of Chicago.
Hesch recovers from Illness
Former AMOA President Wayne E.
Hesch was hospitalized while in
Washington , D.C. in April , suffering
from a blood clot in one leg . Hesch
was in the Capital as representative
of the AMOA's Governmental Affairs
Committee , involved in the pro-
ceedings of the Copyright Royalty
Tribunal.
Mr. Hesch returned home to
Rolling Meadow , Illinois on April 12 .
His office reported he was prepared
to return to work six days later (as
UPDATE was going to press) .
Friends of the active operator and
AMOA officer may want to wish him
well . Hesch's business address is:
A .H . Entertainers, Inc .,
1151
Rohlwing Road, Rolling Meadow
60008; telephone: 312/253-8300.
European Representative:
Esmay Leslie
PLAY METER ,
June 1, 1980.
Volume 6, No . 10. Copyright 1980 by
Sky bird Publishing Company . PLAY
METER ( ISSN 0162-1343) is pub-
lished twice monthly on the 1st and
15th of the month . Publishing
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tional mailing offices . Postmaster:
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PLAY METER
Promotions . "Harescombe" Watford
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Northwood 29244.
Status of new royalty bills
Jukebox operators who may have
opposition to paying further royalties
to music artists under the 1976
Copyright Law will have interest in
two bills pending in the U . S .
Conqress.
Legislation has been introduced in
the 96th Congress entitled the "Per-
formers Royalty Act," House of
Reoresentatives number 997. [ See
PLAY METER , July, 197Y, page
55.] The bill was assigned to the Sub-
committee on Courts, Civil Liberties
and the Administration of Justice of
the House Judiciary Committee .
Representative John Paul Ham -
merschmidt , Arkansas,
recently
wrote a constituent : "I have learned
that most broadcasters are totally
opposed to the principle of paying
record companies and recording
artists a new royalty when they
already pay the actual creators of the
music . the authors and publishers ."
He noted that a companion bill , S.
1552. was in the Senate with no
action scheduled before the Senate
Judiciary Committee at late March.
Operators should cite the bill num -
bers. H . R. 997 and S . 1552. in
voicing to their congressmen their
opposition to further royalties .
PLAY METER will continue to
cover developments in the copyright
royalties issue .
Bally lists Invaders 'hotline'
The correct Bally toll -free telephone
number for Illinois residents to
receive reports on Space Invaders,
the pingame is : 1-800-942-9474 .
The Illinois number was stated in -
correctly in the May 15 issue of
PLAY METER due to misprinted
information from the manufacturer .
The nationwide toll-free number
( outside Illinois) for Space Invaders
reports by phone is 1-800-323-3377 .
The taped messages on the Bally
"hot line" are set up for operators
and distributors to use to their
advantage in stimulating interest in
the Space Invaders pinball game .

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