Play Meter

Another approach to the jukebox royalty fight
Higher copyright fees
opposed by Stern/Seeburg
By Michael A. Nemeroff
Counsel for Stern / Seeburg
Contributor Nemeroff of Sidley and
Austin, Washington, D.C., has been
active in lobbying against higher
jukebox royalty fees.
An increase in the copyright royalty
payments could be in store for
jukebox operators if Congress
approves legislation creating a new
copyright for performance rights in
sound recordings . Legislation to
require the new royalty payments
has been introduced by Con·
gressman George Danielson (D·
California) and twenty-eight other
members.
The proposed legislation (HR
1805) would create for the first time a
copyright for sound recording
performances to benefit record
companies, performers, and
musicians. Jukebox operators
would be required to pay a new
royalty for each jukebox operated.
Currently jukebox operators pay
royalties of $8 a year for each
machine. On January 1, 1982,
royalities will increase to $25 per
machine and then to $50 on January
1, 1984, as a result of a Copyright
Royalty Tribunal decision earlier this
year.
The new bill would increase the
current $8 royalty by $1 per jukebox,
but this new royalty could be further
increased by the Tribuna! in line with
the increases it ordered this year.
Hearings on HR 1805 were held by
the House Subcommittee on
Courts, Civil Liberties and the
Administration of Justice in June.
Wayne Hesch testified on behalf of
the Amusement and Music
Operators Association, telling the
subcommittee that the new royalities
would be unfair because operators
have recently been subjected to
heavy new royalties and that the
jukebox industry already contri-
butes substantial revenues to the
record industry as the largest
purchaser of 45 RPM records.
Lawrence Siegel, president of
Seeburg, told the subcommittee in a
statement submitted in July that the
jukebox operating industry cannot
afford the proposed new royalties,
"HR 1805 would further weaken this
industry and this would reduce the
United States' market for new
jukeboxes, seriously affecting
The principal arguments against H.R. 1805:
(1) Jukebox operators cannot afford new royalties particularly because
the royalties will be set by the Copyright Royalty Tribunal if the legislation
is passed and will be much larger than $1 per machine each year.
(2) New royalties may cause jukebox operators to purchase and operate
fewer machines and to concentrate more on video and pinball thereby
defeating the purpose of the legislation.
(3) Jukebox operators are major purchasers of 45 RPM records which
are a substantial source of revenue for the record industry, performers
and musicians.
( 4) Most of the new royalties will go to record companies and performers
who produce the most popular records. These companies and performers
are well compensated and successful and do not or deserve new copyright
royalties.
10
Seeburg and the other domestic
manufacturers," said Siegel.
The legislation is strongly
supported by the Recording Industry
Association of America Inc . ,
representing 49 record companies,
and by a variety of musicians and
performers groups.
Hearings on the legislation were
completed in July and the
subcommittee may take up
consideration of HR 1805 when
Congress returns on September 8,
after the Labor Day recess.
Operators who would like to register
opposition to the legislation can
write to the Congressmen listed
below who are members of the
subcommittee:
Subcommittee On Courts,
Civil Liberties, and
the Administration Of Justice
Robert W . Kastenmeier, O-Wl,
chariman; Jack Brooks . 0-TX;
George E. Danielson, D-CA; Barney
Frank, 0-MA; Tom Railsback, R-IL;
Harold S. Sawyer, R-MI; M. Caldwell
Bulter, R-V A.
Other Congressmen who may be
contacted are those co-sponsoring
HR 1805; as follows: Anthony C .
Beilenson, D-CA; David E. Bonior,
0-MI; John L. Buron, D-CA; Shirley
A. Chisholm, 0-NY; William L. Clay,
0-MO; Cardiss R. Collins, O-IL;
John Conyers, Jr., 0 -MI; Ronald V.
Dellums, D-CA; Julian C . Dixon, D-
CA; Walter E. Fauntory, Dei.-DC;
James J . Florio, 0-NJ; Harold E.
Ford, 0-TN; William H . Gray, 0-PA.
Also, Albert Gore, Jr., 0-TN;
Augusta F . Hawkins, D-CA; Henry
J. Hyde, R-IL, Joseph M. McDade,
R-PA; Norman Mineta, D-CA ;
Parren J. Mitchell, 0-MD; Donald J.
Mitchell, 0 -NY; John T. Myers, R-
IN; Fredrick W. Richmond , 0 -NY;
Stephen J . Solarz, 0 -NY; Henry A.
Waxman, D-CA; Ted S. Weiss, 0 -
NY; Antonio B. Won Pat, DeL -
Guam; Sidney R. Yates, O-IL, and
Leo C. Zeferetti, 0-NY.
PLAY METER, October 1, 1981