Play Meter

F ROM THE EDITOR Looking for 100% compliance T he negotiations are over. The verdict is in for jukebox operators after 18 months of talks. On March 22, the AMOA and the performing rights societies, ASCAP, BMI, and SESAC, 200,000 jukeboxes singing their tunes in I know that the controversy of whether there even should be a license fee has been raging for a decade. I was here when the first jukebox, it seems clearly designed to notion of a fee was raised in 1978. Boy, affect those locations who own their own we fought that as long as possible. The $8 jukeboxes and have never bothered to doesn't seem so bad now! I can see that locations across America. While everyone must pay $275 for the signed an agreement detailing the fees that jukebox operators will have to pay on license them. They should pay a little their machines for the next 10 years. more. In fact, it could be a benefit to Very briefly, they will have to pay $275 legitimate operators; a location may not for the first jukebox, $55 each for two feel it's worth it to pay the high fee. through nine, and $48 each for more than Therefore, he may just decide to sell the 10. There is a break-even point at 19 box back to an operator, who will then be jukeboxes. responsible for the licensing-and the Although the $275 for the first jukebox split! With the multiple fees, any operator looks excessively high, the fee for subse- with over 20 jukeboxes will see a decrease quent ones has dropped considerably. in overall payment to the societies. And it could drop even further-as low as A word of caution: the performing $30 per year per machine-if the com- rights societies will be even harder at pliance is up. work to catch violators. If caught, But perhaps the best part about the operators will be at their mercy. In fact, agreement is the amnesty clause. Even if if an unlicensed jukebox is spotted, the you have never licensed a single jukebox owner could be forced to pay license fees over the past 10 years, you may now do so at no penalty. You will not be asked to pay until June 1, so get out your check book lose now in not having your jukeboxes and license those jukeboxes. licensed. ly say that jukebox operators are lucky that the fee was not raised considerably sider. The higher the compliance level, the more the per-machine fee drops. higher. In these days of inflation and hungry governmental bodies, the performing rights societies are not going after blood. But they expect compliance. In the years since the compulsory license fee was enacted, the compliance level has Another thing you may want to con- Therefore, operators who are adhering to ly ignoring the law. With the amnesty offer, operators have the perfect opportunity to license jukeboxes with no hassles. What better time to put the past aside and get your route in order. Remember, obligated to pay the current license fee (or one much higher for two years), you will also be required to pay ALL back fees! That's scary! I wouldn't want to take the chance. I'm not sure that I can think of anyone who would be willing to bet so much when there is so little to gain, but so the law will not be apt to look the other much to lose. way if they see unlicensed jukeboxes dotting their territories. Before this new agreement, unlicensed jukeboxes did not directly affect other operators the way it never been what it should have. In 1989 now does. It is decidedly in the best inthe total number of jukeboxes registered terest of operators who send in their was under 100,000. Estimating in conser- license fees to monitor those that don't. vative numbers, there are probably over And, yes, even report them if necessary. 12 PLAY METER/May 1990 ever in our industry. Operators cannot turn a blind eye on those that are blatant- you have until June 1 to act with no questions asked. You may never have this opportunity again. And keep in mind that if as high as $600 per year and will not be you are caught with unlicensed jukeboxes able to take advantage of the negotiated after June 1, not only will you be any back fees. But the grace period is only agreement for two years. There is more to Looking at the situation, I can honest- there will always be a fee-the amount will depend on operators. It makes sense-the more people that register, the lower the fee. The societies are getting their fair share one way or the other. Music is becoming more important than Valerie Cognenich Valerie Cognevich Editor