AS CAP P ay.m e n t System Explained Part One: The sands of cus- In addition, a simplified three- formancesis so important to our tomers each tiered licensing rate structure has overall licensing success, which ASCAPLicense year. And been implemented.This provides impacts all members’potential This arlicle ix Part Oneof a specifically an easier introduction to the earnings. series designed lo give (mr mem- dealing with financial obligations a site Preparation for these negotia- her,~ a better umterstandingo/lhe Web site and assumes when using copyrighted tions requires an enormouseffort ASCAPPayment System and the lnternet licens- . in researching music use and how many.factorsthat go mlocalculat- it is changing on the airwaves, MorgensternMarc Senioring is VPASCAP of ing howmm~h a particular pelSu’- Broadcast and in providing tremendous manceis worth. Wearc starting Strategic Planning and New detail about the use of the (~]’ thi.~ xcrie.¥ with a look al Media Marc Morgenstem, who TelevisionLicensing ASCAPrepertory on television. ASCAP5 licensing (/,[brts. * directs his team of professionals One-third of ASCAP’soverall Futurearticles in the series will revenues are generated from Radio Licensing cover hown’e track andidentil the use of musicon net- 5, Fortunately, on the radio side, ’,,’ ascae , work, local and cable ,s’urvcs’s howroyaltiex ./br .’"’?’ ASCAP television. The ABC, negotiations have historically ’¥pec’fic°r’ tyl’exqf Pe’f CBS and NBCtelevi- resulted in agreementon nl(lllC’(~Sare determilled,attd HOWco,ectYou~"~r sion networks pay fees and terms without rate court litigation. As with television, collecting international royal- ASCAPflat dollar Royalties? ASCAPhas dealt with members tic3’. blanket license fees. of the Radio Music License In 1998, ASCAPbecame the License fees Committeein negotiating music first performingright organiza- for local television are the prod- in the exploding dig- " license fees for five-year terms. tion to collect over a half-billion ital world. uct of both rate court litigation dollars for its members.Of that, and negotiations between For commercial radio, ASCAP Since ASCAP’s offers two types of license agree- $371 million was collected from customers are so ASCAPand the Television our customers - the users of Music License Committee. ments- blanket and per program. different (see box below), our Moststations choose the blanket music - for performances in the Committee members are broad- licensing effort is organizedinto agreement under which they pay United States alone. Negotiating casters representing the broad specialized teams responsible for an annual fee, billed monthly, with customers and col- dealing with specific types of spectrumof the television indus- and based on a percentage of the lecting the licensees. try. This licensee group, more station’s annual revenue. The per fees is one of than any other, has tried vigor- programagreement is chosen pri- ASCAP’s Web Site and ously to reduce the license fees marily by stations whichuse less most impor- Internet Licensing they pay for the use of music. In presenting our case, ASCAP feature copyrighted music, typi- tant functions. The Internet provides a cally employing News/Talkfor- Yet ASCAP’s has a team of negotiators com- dynamicnew source of licensing mats, or religious programming. licensing prised of our licensing executives revenue for ASCAPand we are Under the per program agree- efforts are aggressively pursuing its oppor- along with counsel and indepen- Vincent Candilora probably the dent experts on music usage. Our ment, fees are principally calcu- tunities. Withnearly 1,000 sites lated based on actual music least familiar area of our opera- goal, of course, is to proveto the nowlicensed, our revenues from usage. tion to our members.Under the industry the ever-increasing the Internet tripled in 1998. Our For non-commercial radio, direction of ASCAPSenior VPof value of ASCAPmusic to their efforts have been greatly such as college radio and Licensing, Vincent Candilora, a enhanced by the development programming. That is why recruiting and retaining members National Public Radiostations, if teamof 168 staffers is responsi- and use of the ASCAPEZ Seeker negotiations are unsuccessful, a ble for licensing tens of thou- with the greatest numbersof per- (see technologyarticle, page 8). rate arbitration proceedingis held WHO ARE ASCAP’S CUSTOMERS? ASCAPcustomers include a diverse group of businesses and organizations that use music in manydifferent ways. In order to license effectively, ASCAPemploys representatives who understand the business needs of each of our various types of customers: Q The major television networks ~ Public television - the Public Broadcasting System(PBS) and its affiliated sta- tions ~ The majority of the 11,000 cable systems, the satellite delivered services and virtually all of the cable pro- gram services ~ Over 1,000 local commercial television stations ’J The Univision Television Network ~ About 11,500 local commercial radio stations ~ About 2,000 non-commercial radio broadcasters, including college radio stations and National Public Radio (NPR) stations ~ Background music services ~J Colleges and universities .~ About 1,000 symphony orchestras r~ More than 6,000 presenters Q Web sites and Internet service providers ~ Tens of thousands of "general" licensees: bars, restaurants, hotels, ice and roller skating rinks, con- ventions, retailers, shopping malls, circuses, themeparks, sports teams and leagues, dance schools, health clubs ~xand many other businesses under the auspices of the U.S. Licensed Beverage Association. the advantages and fairness of CopyrightOffice. Licenses for different busi- partnering with ASCAP. Radio is our second largest f Music nesses are designed with their Amongthese programs is a source of domestic revenue and needs and those of our members cooperative advertising campaign 26%of our overall revenues. Makesi in mind. Most businesses know that benefits both our customers that the ASCAPlicense provides and ASCAP,and the introduction Cable Licensing good value and choose to enter of a CustomerCard similar to the The cable television industry into agreements with us. Some, ASCAP Member Card. The has undergone tremendous [Diffe~the i! however, require a great deal of ASCAPCustomer Benefit Card is "selling" to convince them that specifically designed for restau- change and revenue growth over they need an ASCAPlicense and the past two decades. ASCAP’s licensing efforts are aimed at that music enhances their bottom line. ASCAP both the program services, such Under the ASCAPConsent CUSTOMERCARD as HBO, Showfime, MTV,etc. Look for the ASCAPCustomer ~ Decree, an agreement ASCAP cu~x~ lg99 and the system operators to Sticked This indicates that an ~GRIILL u~ which households subscribe for establishment pays an ASCAP entered into with the Federal their cable services. ASCAPhas licensing fee for the musicthey Governmentto avoid antitrust rrs ee~ ~u~loes~ I’ulu sn~ claims, if we do not reach agree- been engaged in long-standing use. menton rates in negotiation with rate court proceedings with the information from publisher mem- rants, bars, grills and retailers. It cable industry to determine rea- our customers, our customers saves them significant dollars on sonablefees as well as other mat- bers on their rental agreements. have a right to initiate a court programs submitted by our writer proceeding for determination of credit card processing, promotion- ters. members, and other methods, reasonablelicense fees. In a rate al merchandise, restaurant sup- While we await the court’s decisions, ASCAPis licensing such as Internet research, wordof court proceeding, ASCAPand the plies, wirelessproducts, travel and mouthand clipping services. individual customeror group pre- the cable industry on an interim insurance. To date, over 28,000 basis. Assuminga favorable out- sent to a federal judge their cases customers have requested and come, ASCAPexpects to collect for the fees each believes are rea- been qualified for the card. We’ve General Licensing sonable. ASCAPbears the burden inaugurated these innovative pro- substantially morein license fees ASCAP’sgeneral licensing cus- grams to minimize the negative coveringthe interim years as well of proving that its proposedrates tomers encompassa vast array of are reasonable. ASCAPand the financial impact of the unfair as the future. different businesses and account customer are then bound by the music licensing amendmentand for 14% of overall revenue. court’s decision. Whilemost rate makethe jobs of our licensing Educational and ASCAPcollects substantially proceedings take place in New field representativesa little easier. more in general licensing than York, under a recent amendment Another successful component Symphonic any of our domestic competitors. to the law, certain of our customerrelations program Licensing We are proud of our proven small businesses mayinitiate rate is bringing ASCAPmembers ASCAPhas special agree- strength in this area. Given the proceedings in the city where directly to our customersto speak ments for various types of pre- tens of thousandsof customersin their federal appellate court sits. and perform. This reminds our senters in this field. For example, this category, including bars, In order to ensure consistency, customers first-hand just how we have an orchestra agreement restaurants, hotels, ice and roller the decisions in these cases will muchmusic enhances whatever it negotiated with the American skating rinks, circuses, theme be reviewed by the Federal Court is they do and that the musicthey SymphonyOrchestra League and parks and more, the general in NewYork with jurisdiction love most is by the membersof a college and university agree- licensing operation is the most over ASCAP’sConsent Decree. ASCAP! ment, which covers the wide labor intensive. Our licensing Withoutquestion, licensing the variety of performancesthat take representatives must stay on top Marketing users of musicis at the very heart of new businesses opening every place on college campuses. An As our readers know,a lobby- of the ASCAPPayment System. It orchestra’s license fee is basedon day across the country and con- is a challenging job requiring vince them of the value of an ing effort led by the National a percentage of its annual box RestaurantAssociation resulted in skills in education, creativity, office receipts from the previous ASCAPlicense. Someof these resourcefulness and tenacity. businesses have never heard of passage of an amendmentto the season. Colleges and universities Copyright Term Extension Act Success means continued growth have three license options from ASCAPand do not understand in ASCAPrevenues, which in that the Copyright Law requires that expands exemptions from which to choose. Of course, vir- music licensing fees for bars, turn meansmore money for distri- tually all orchestras, colleges and them to have permission to use bution to our members.· music.It is no easy task! restaurants and retailers. ASCAP universities that use music are is committed known to ASCAP and are Our general licensing team is two-tiered, with administration to overturning licensed. For more and customer service located in this recent Wealso offer two forms of music licens- information, license agreementsfor promoters offices in Atlanta, and a field sales staff servicing all regionsof ing amend- visit the and presenters of , ment. In the licensing area of recitals and similar events - a the country. As with other customer meantime, we www.ascap, com. blanket concert license and a per Phil Crosland are aggres- concert license. groups, ASCAPtries to identify trade associations with which to sively workingto changethe dia- : As a member afASCAP 3ou have the With respect to the vast num- option to issue direct pet~;rmancelicen.~- negotiate rates on behalf of simi- logue with our customersthrough ber of concerts and recitals that several new marketinginitiatives es to broacast Station5 or calIle sen’ices lar types of customers, such as on any terms you and they Inll.~ a~l’ee take place throughoutthe country under the direction of ASCAPVP in large venues and small, the the American Hotel and Motel upon. However,in such a ca.~e, you must of MarketingPhil Crosland. These ml%rm ASCAP thzwugh the Member licensingstaff has the initial task Association, the Bowling Proprietors Association of initiatives are designed to show Services Department that you have of identifying events to be our customers how valuable licensed your work directly becauxe )ou licensed. To do so, they rely on America and the National are not entitled to be paid by ASCAPJbr music is to their businesses and perfi~rmancesyou have licensed yourse(fi THE ASCAP PAYMENT SYSTEM EXPLAINED Part Two: Turning Performances Into Dollars

7hL~arli,’lu is Pro’! 7uw./a to makesure all membersreceive ber of ASCAPcredits being quarter. For example,if a wriler .~,Ol’i(’~ tl(’$’/~.’Jl(’d If) (jr, r tHtC what they earn in the fairest way processedfor wrilers or publishers earned I0,000credits fi~r perfor- possible." in a performancequarter into the mancesof her works in a three- IIIUIII/)UF,X ,~t hdll¢’l’ ltlldcl’- ’ There are billions of ASCAP total numberof dollars a’

Each type of perfor- Thelicensee or "station" This factor ensuresthat Ontelevision, the value mance is assigned a weight reflects the the license fees that of a performance can "use weight," which license fee paid by a ASCAPreceives from vary depending on the determinesits value rel- radio, television,or cable any mediumare paid to time of day or night or ative to other types of station (or groupof sta- writers and publishers whetherit takesplace on performances. Feature tions) and the numberof for performanceson that a weekday or on the performances receive hours in eachsurvey of medium.In other words, weekend,or holiday. the highest weight at performances. The the moneyreceived from 100%. Themeweights licensee weight is also cable is paid out for Just as the type of per- range from 25%-60%. referred to as the "hook- cable performances,etc. formance(e.g., theme, Underscoringis general- up" weight with respect In the case of radio, background)affects the ly weighted at either to network television, ASCAPconducts sepa- value, the time of day 42%or 54%per 3 mira reflecting the numberof rate surveysof country, during whichthe perfor- utes. Advertising music stations carrying a Latin, , urbancon- mancetakes place also (jingles) are weighted broadcast. temporary, religious, affects the value of a 3%. classical, ethnic, and performance.For exam- For example, perfor- pop music stations so pie, on networktelevi- Thereare manydifferent mancesof a song on a that the total moniescol- sion, a prime time per- use weights outlined in station that pays ASCAP lected from those genre formance is weighted ASCAP’sweighting for, $500,000in license fees -specific stations is paid highest at 100%. mula designedto assign annuallywould receive a to the writers and pub- Viewership is highest relative values to the higher value than the lishers of workswith per- during prime time and widest possible rangeof same performances on formanceson those sta- stations generate the types of performance. a station that pays us tions. most revenue in those For example,in the case $15,000annually. hours. The weight of a of live symphonyand This "follow-the-dollar" performancein the after- concert performances, The median station systemensures that per- noonis 75%.The period not only the length, or weight is given a value formance payments with the fewest number duration, but also the of 1, with weightsfor sta- reflect whatis actually of television viewers,the instrumentation will tions paying more or being performedin each overnightperiod, gener- affect the number of less than the median medium. ates the least amountof credits a particular per- license fee determined credits. Whethera show formance will generate accordingly. airs on a weekday, (full orchestra, chamber weekend,or holiday also work,etc.). Periodically, ASCAPalso assigns affects the weight. the ASCAP Board "weights" based on adjusts the use weights license fees from other to reflect changesin the surveyed media, such industry. as the Top200 live con- certs, tours, symphonic and chamberconcerts, web sites, background musicservices, airlines, circuses andice shows. INTO DOLLARS

] CREDITS] x

Feescollected from non- For radio only- Songs I s.^.EI broadcast, non-sur- that reacha certainlevel X veyedlicensees (bars, of radiofeature credits in hotels, restaurants and a quarter receive addi- ~CREDIT VALUE = I the like) are applied to tional performancecred- broadcastfeature perfor- its in that quarter for manceson radio and all their radio sucess. I$ROYALTY performanceson televi- Theseadditional credits sion, which serve as a translate into increased proxyfor distributionpur- royalty payments for poses. writers andpublishers of Whenall of these factors are com- qualifying songs. These puted, wearrive at the numberof Performances tracked paymentsrepresent the total performancecredits. After on television and radio increased licensing establishing the numberof credits serve as an indicator of valueto the repertoryof generated by a performance, the performancesthat take frequently performed next step is to allocate thesecredits place at restaurants, songs, such as current amongall of the writers andpublish- bars and other chart songs. ers of the work basedon the share licensees. It would be each should receive. ASCAPis impracticalto surveyall advisedof the correct sharesto be general licensees of paid when memberssubmit Title ASCAP’sworks. Basing Registrations.For example,if twoco- the distribution of gener- writers of a song share royalties al fees on surveyedper- equally, eachwill receive50% of the formanceson radio and total credits. Similarly, eachwriter’s television provesto be publisherwill also receive50% of the the most cost-effective total credits.Thefinal stepis to multi- wayto pay these perfor- ply credits by the appropriatecredit manceroyalties. valueto arrive at the . THE ASCAP PAYMENT SYST M XPLAIN D Part Three: Broadcast and Cable Television

7hi.~ arlic/e is Part Three q/a nated shows, such as news, D American Movie Classics Identifying seric.~ designed u~ ~,ive ~mr sports, and public affairs, i_l Black Entertainment TV Performances- t/hT;Jl/;’etW ~l belier umier.slandi,~ Because it is such an integral ~lCarloon Network qf lhe AS(’AP Paw~wnt,%,wem. part of the total viewingexperi- The Importance TI Cinemax of CueSheets ]tl Ihe /a.Wi.¥.suc, we ]ooked~il ence, we may not always notice Cl ComedyCentral the various uses of musicwithin The starting point for the var- the d(/~’rent/~lctot’s lll(it ,k’o blto L.i Country Music TV the cal(’tt/athm of roy(dlie.L/bro a program, which include fea- ious television surveys, whether .~ingh’ pe(/brm(lncein any sur- ture performances, themes, L.i Discover), Channel they are a complete count or a veyed medium,ht thi.s ivsuc. ~c underscoring, and music in ads, ~ Disney’ Channel sample survey, is a program will e.v~lain hon ~e trdck, hh’n- logos and promos. And, of LJE! Entertainment schedule. The program schedule lists the stations broadcasting li/?; ~lllil V(dlle [)c’l.’/iJl’llttltl(’f’.S (UI course, every genre of music is LJ Encore bt~a&a.vtdtu] cable telerixion. represented." ASCAPtracks all F..i F/X each TV program, the specific program (including episode types of uses in our surveys of ~ Family Channel titles for syndicatedseries), and icense fees collected performances on television and ~1FLIX cable. the date and time of broadcast. from broadcast and cable LJ HBO L television constitute ASCAPpurchases computer- ~ History Channel ASCAP’slargest source of rev- Tracking ized program schedules from Learning Channel enue, makingup to close to 45% PerformancesOn two major vendors. of overall domesticreceipts, and Television AndCable Lifetime To identify what musical Movie Channel works are performed on both a substantial portion of incom- The ASCAPsurvey of perlbr- [_1Nashville Network broadcast and cable television, ing foreign receipts. In keeping mances covers more than 7.5 with ASCAP’s"follow the dol- Nickelodeon ASCAPmatches the program million hours annually. schedules to its computerized lar’’ policy, moniesattributable .J Plex ASCAPconducts a census sur- cue sheet database. Cue sheets to network television are paid vey, or complete count, of most ZI Sci-Fi Channel out for performances on net- are provided to us by the pro- music performed on broadcast _1Showtime gram producers, distributors, worktelevision, moniesattribut- television and the major cable STARZ! able to local television are paid broadcasters or foreign soci- services. Tl NT out for local television perfor- eties. Cuesheets list the detailed mances, cable monies are paid ~1Turner Classic Movies information on each of the com- out for cable, and the fees for The ASCAPCensus 7j USA positions included in the TV Surveyof Television program. The cue sheet indi- public television are paid out for PBS performances on PBS and its and Cable includes: cates how the music is used [~ All PBSprograms, syndicat- stations. ASCAPis paid an (feature, theme, underscoring, ed programs and films on sta- annual blanket license fee by Network’IV etc.) and the duration of each tions with S20,000 or more most of the television and cable J ABC, CBS and NBC net- performance. The sheet also annually in license fees industry for the right to use any works - all performances indicates the composers,writers music in the ASCAPrepertory. (including music in commercial. and publishers of each composi- ASCAPconducts a sample sur- Somelocal television stations promotional and public service tion. All of this infimnation is vey of performances on the critical to determining how opt for a per program license, announcements) smaller cable services and PBS much each composition will be under which they only pay _1 Fox, Paramount, WB, stations, local programmingon paid as well as which members ASCAPfor programs contain- Univision - all programs ing ASCAPmusic not otherwise local TV and PBS, and music in are entitled to be paid. commercials, promotional and licensed. ASCAP must have a cue public service announcements ASCAP Local TY sheet on file to credit our mem- on local TV, cable and PBS. Vice President All syndicated programs, fea- bers and make payment. The sample survey of these per- of Film and ture films, and movies of the Among ASCAP’smany tech- Television week formances is designed to be a nological innovations was the statistically accurate reflection Music Nancy Locally produced programs development of unifk)rm cue of performances taking into Knutsen talks for which ASCAPis paid on a sheet software, account all times of the day, all called EZQ, about the per-program basis Nancy Knutsen importance of days of the year, all regions of which has music to television: "Musicis a the country and all types of become the cable services and local TVsta- vital componentof virtually all Cable TV industry stan- tions. programming - feature films, All programs on the major dard. Most of movies-of-the-week, episodic cable services, including: the major stu- dios and pro- series, as well as locally origi- [_l A&E Seth Soh£man gramproducers use EZQ,which greatly facil- numberof affiliated stations that carry a net- itates the process of preparingcue sheets and workbroadcast is also taken into account. identifying performances of our members’ With respect to the Fox, Paramount,and works. Seth Saltzman, Director of WBnetworks, license fees to ASCAPare paid Distribution, notes: "ASCAPreceives over by each individual affiliated station, in much 60,000cue sheets and processes tens of mil- the sameway we license local television. The lions of pieces of musicperformed on televi- numberof affiliates to carry a broadcast, and sion and cable in a year. To handle this vol- howmuch each station pays in license fees ume, we have a dedicated professional staff determinesthe "licensee weight"affecting the devoted to processing cue sheets and match- value. ing them with the performance data. The Univisionpays license fees for all perfor- developmentof EZQ,as well as other techno- manceson the Univision network as well as logical resources,has madeit possible to dra- all performances on the local TV stations matically increase the numberof perfor- ownedby Univision. These fees are distrib- manceswe can process in a distribution quar- uted for the performancesin Univision pro- ter.’’ gramsand the local programsbroadcast by the Whena cue sheet arrives at ASCAPelec- Univisionaffiliates. tronically via EZQ,the data are automatically In the cable area, ASCAPhas been engaged loaded into ASCAP’scue sheet database, in long-standing rate court proceedings to called SHOW.SHOW stores all necessary determine reasonable fees as well as other information for distribution purposes. This matters. Becauseof this, we are being paid information includes such detail as series, interim license fees that are significantly episode, movietitle, year of production,orig- lowerthan those paid by networkor local tele- inal airing date, producers,actors, as well as vision, impactingthe credits earned for cable the writers, publishers and ownershipshares performances. Assuminga favorable out- of all musiccues. Whencue sheets are fried on comewith respect to the litigation, wehope to paper, the information has to be keypunched collect and distribute morein license fees cov- manually into SHOW. ering the interimyears as well as the future. While cue sheets are the main source of As you can see, there are several variables performance information for TV programs, that go into the crediting of performancesof ASCAPalso receives logs from broadcasters musicon television and cable. for programsthey produce and airing sched- ules for commercial,promotional and public PerformancesOutside service announcements.In addition, weinde- TheUnited States pendently maketape recordings of television As we all know, Americanfdms and televi- programs.These tapes are used to supplement sion showsare immenselypopular throughout the cue sheets and logs. Theyallow us to con- Europeand in other parts of the worldas well. duct quality control checksand assist in iden- The foreign performingrights organizations tifying performancesin locally producedpro- with which we have agreements monitor grams and announcements. broadcastsof our members’works in their ter- These multiple sources of performance ritories. Theyforward to us the royalties due informationallow us to makeaccurate distrib- for distribution to our members.An important utions to our membersfor television perfor- part of our role is to ensure that societies mances. aroundthe world have all the informationand documentationthey need about the works in HowPerformances Are Valued ASCAP’srepertory to properly identify and Each surveyed performancegenerates a num- pay on performances. In some territories, ber of credits basedon several factors: ASCAPalso monitorscertain types of perfor- 21 Whether the performance took place on mances to ensure proper crediting of our network TV, local TV,PBS or cable TV; member’sworks. For example, in Austria, 21 The type of usage - feature, theme,under- Finland, France, Germany,Ireland, Italy, The score,jingle, etc.; Netherlands, Spain, Sweden,Switzerland, and 21 Howmuch a particular station, groupof sta- the United Kingdom,where Americantelevi- tions, or service paysin license fees; sion programsand films are frequently broad- 21 The time of day of the performance- prime cast, sometimeswith foreign languagerifles, time, overnight, weekend,weekday, etc. ASCAPcollects its ownperformance infor- Each one of these factors is designed to marion to help identify the use of ASCAP ensure that ASCAP’spayments "follow the music. ASCAPis the only U.S. society to dollar" and, in a fair and objectiveway, reflect have an International MonitoringUnit (IMU) the relative value of one type of musicperfor- that utilizes an innovative database (EZ- mancevis-a-vis another. Maxx)to verify the accuracy of television The three major networks-ABC,CBS and and cinema performance statements NBC- pay the nighest license fees in televi- received fromaffiliated foreign societies. I sion and therefore performanceson these net- works generate the nighest royalties. The THE ASCAP PAYMENT

This article is Parl Four of a tion to our members.So that our maintainsan electronic listing of societies, as well as their music Se~4i~’S ~~~’~rig~]~~ tO give our mem- members receive their money writer and publisher CAEnum- users, often prevent identification bclwa better understandingqf the from abroad as quickly as possi- bers for mostof the world’s per- and crediting of our members’ .4S(~4PP~lyn;ent ~$~l,~’tern. /n lhe ble, wemake four foreign distrib- forming and mechanical right works. For this reason, ASCAP kl.vl isxue, we ¢¢rplainedhow we utions a year: in February, May, societies. This numberis very takes an aggressive approach in track, klenti~.’,’ andvalue per/br- August and November.Each dis- important because you must have monitoring performances of manees on broadcast and cable tributionlists specific countriesas a valid CAEnumber and be a cur- ASCAPrepertory in foreign terri- lelevisk~n. In thi~’ ixxue we will well as periods of performances rent memberof a performingright tories. Hereare someof the initia- provide an overviewoj the co/lee- and type of media(film, televi- society in order to receive per- tives ASCAPhas developed to lion ~f rrLva/ties/~Jr pet:fi~rmaneession, radio, etc.). formingroyalties fromabroad. achievemore accurate crediting of ~/’ wor]c~in terrimrie.soutside the Becauseforeign royalties are Amongthe other international our members’music: UmtedStates. paid based on a country’s local tools used to help societies Television, Cableand Cinema: oyalties earned in for- licensingand distribution policies, exchange necessary information In Austria, Finland, France, D eign countries are an ASCAPmembers can receive roy- are the WWL(World WorksList), Germany, Ireland, Italy, The [[ ~ important source of alties from abroad for perfor- Fiche lnternationale and Cue Netherlands, Spain, Sweden, ~k..income for ASCAP mances in venues ASCAPis not Sheets. The WWLis a computer- Switzerland and the United members.Currently, foreign roy- able to license under our Consent ized list containing actively per- Kingdom,where Americantelevi- alties constitute approximately Decree, namelymovie theaters. formed or important songs con- sion programs are frequently one fourth of ASCAP’srevenues, Most of the revenues received tributed by 41 performing right broadcast, usually with foreign amountingto approximately $137 by ASCAPfrom foreign societies organizations from around the language titles, ASCAPcollects million in 1999. ASCAPhas are paid out to writer members world. The WWLis issued to per- its ownperformance information agreementswith foreign societies because most publisher members forming and mechanical right to help identify the use of ASCAP representingvirtually every coun- collect their shares directly via organizationstwice a year, in May music. ASCAPis the only U.S. try that has laws protecting copy- foreign sub-publishers. and November, in microfiche, society to have an International right. Thesesocieties are similar Senior Vice tape, cartridge and CD-ROMfor- MonitoringUnit (IMU)that uti- to ASCAPand we cooperate with President of mats. ASCAPprovides the WWL lizes an innovative databasetech- them in a number of ways to International with details on all songs in our nology (EZ-Maxx)to verify the ensure that our membersreceive Roger Green- repertory that have surveyedradio accuracyof television and cinema royalties from performances of away heads performancesin the UnitedStates. performancestatements received their worksin foreign territories. ASCAP’s As administrator of the WWL, fromaffiliated foreign societies. Through these agreements, they International ASCAPhas also developed a new ASCAPdeveloped the EZ-Maxx team. A well- database called the Works technologyspecifically for this license the worksof our members Rogo-Gmenawayknown in their territories and welicense song- Information Database, or WID, purposeyielding excellent results. the worksof their membersin the writer himself, and a former which currently runs parallel to Radio: ASCAPalso reviews UnitedStates. Chairman of the Board of the the WWLand will eventually various international musicpubli- When ASCAPworks are per- UK’s PRS, Greenaway brings replace it. TheWID utilizes state- cations on a weeklybasis to spot formedin a foreign country, that tremendousexpertise andknowl- of-the-art technologythat elimi- ASCAPworks that appear in the country’sperforming right society edge to the job. "An important nates duplication of works and charts. When ASCAPworks collects the license fees fromthe part of ASCAP’srole," says makesthe cataloging and sharing appear, we immediately forward local music users. The foreign Greenaway, "is to ensure that of important information about the songdetails to the local soci- society then forwardsthe royalties societies around the world have musical worksmore effective than ety to ensure that our membersare earned to ASCAPfor distribution all the information and documen- ever before. credited. Wealso forward docu- to our members whose works tation they need about our mem- Someforeign societies prefer to mentationto all of our affiliated were performed. Each foreign bers and the worksin our reperto- receive songdetails in the formof societies for any ASCAPwork society tracks performancesin its ry to properlyidentify’ and pay on index cards, or fiche interna- entering the Billboard Hot 100 ownterritories. performances."The first step in tionale. Societies use the informa- chart. Royalties earned from foreign this process happens as soon as tion on these cards to distribute Live Concert: Concert perfor- territories vary dependingon each you join ASCAP.You are assigned royalties for performancesin all mancedetails (Venue, Date, City country’s use of Americanmusic, a nine-digit CAE(Composer, mediaexcept television and cine- & Country) provided by a U.S. local copyrightlaws, the types of & Editor or Publisher) ma, whichuse cue sheets. basedtrade publication are loaded uses licensed, the fees collected number,which is associated with Once ASCAPhas disseminated into an electronic database on a fromlocal musicusers, etc. Each your legal name. Your CAEnum- documentationabout our reperto- monthlybasis. This database is foreign society pays ASCAPfor ber will remain with you even if ry, it is the obligationof ASCAP’sthen reviewedperiodically and a use of our members’ music on you leave ASCAPand join anoth- affiliated societies to ensurethat computer generated set list varying payment schedules er performingright organization. performances of ASCAPreperto- request is issued to any Manager dependingon their owndistribu- Any pseudonymsyou may use are ry in their territories are credited. or representative of an ASCAP tion policies. Whenour members’ also assigned CAE numbers, In reality, however,factors suchas artist (or of an artist whichper- music is used, the royalties are which are linked to your legal language and the cultural and forms ASCAPrepertory) who are forwardedto ASCAP~br distribu- name. SUISA,the Swiss society, businesspractices of our affiliated on tour in a foreign territory but have not yet provided ASCAP experts take part in the visits so distributions fromthese societies. - February, Mayand November. with set lists. Uponreceipt of the that they maybring their consider- Our revenues from foreign ter- 3. France (SACEM)$12.6 million set lists ASCAPnotifies the able expertise whenreviewing the ritories have steadily increased as - February, Mayand November. appropriateaffiliated society(s) of distribution, documentation,and the result of our efforts and the 4. Italy (SIAE) $11.5 million - the performances and encloses licensing and financial practices growing prominenceof American February and August documentationfor all of the per- of our affiliated societies. It is music abroad. ASCAPis the most 5. Japan (JASRAC)$10.3 million formed works. through these exchanges that effective U.S. performing right February, May, August and Theatrical Films: A U.S. ASCAPcan identify areas that organization in collecting foreign November. based trade publication that pro- require special initiatives on our royalties. Wehave the longest 6. Canada (SOCAN)$9.2 million vides film boxoffice charts by ter- part to makesure our membersare standing relationships with for- February, May, August and ritory is reviewedand cue sheets properly credited. eign societies and the deepest November. are forwarded monthly to the Legal Assistance: ASCAPpro- understanding of how they do 7. Netherlands (BUMA)$6.7 mil- appropriate society for any film vides legal assistance to any affil- business. lion May, August, and containing ASCAPrepertory that iated society having difficulty Hereis a list of the top ten soci- November. enters the boxoffice charts. licensing ASCAPrepertory. eties in terms of 1999 revenues 8. Australia (APRA)$4.6 million Technical Visits: ASCAP ASCAP’sexpertise in this area distributed for performances of - Mayand November. makesroutine technical visits to has helped many new and well- ASCAPrepertory: 9. Spain (SGAE)$4.3 million - all of its affiliated societies to established societies to license Mayand November. ensure that our repertory receives media such as the Intemet, cinema 1. Britain (PRS) $25 million - 10. Austria (AKM)$3.6 million - equitable treatment as well as operators, satellite TVbroadcasts, Distributed in February, May, February and May. maximumcompensation. Our dis- live concerts and other media. August and November1999. tribution, documentationand legal This has in turn heloedto increase 2. Germany(GEMA) $18 million