AS CAPP ay.m e n t System Explained Part One: The ASCAPLicense This arlicle ix Part Oneof a series designed lo give (mr memher,~ a better umterstanding o/lhe ASCAP Payment System and the many.factors that go mlocalculating howmm~h a particular pelSu’manceis worth. Wearc starting Strategic Planning and New (~]’ thi.~ xcrie.¥ with a look al Media Marc Morgenstem, who ASCAP 5 licensing (/,[brts. * directs his team of professionals Futurearticles in the series will cover 5, hown’e track andidentil ,s’urvcs’s how royaltiex ./br .’"’ sands of customers each year. And specifically dealing with Web site and lnternet licensMarc ing is ASCAP Morgenstern Senior VP of In addition, a simplified threetiered licensing rate structure has been implemented.This provides an easier introduction to the financial obligations a site assumes when using copyrighted music. formancesis so important to our overall licensing success, which impacts all members’potential earnings. Preparation for these negotiations requires an enormous effort in researching music use and how it is changing on the airwaves, and in providing tremendous detail about the use of the ASCAP repertory on television. Broadcast TelevisionLicensing ASCAP ?’ °r’ ’¥pec’fic tyl’ex qf Pe’f HOWco,ectYou~"~ r nl(lllC’(~S aredetermilled, attd collecting international royaltic3’. ’,,’ ascae In 1998, ASCAP became the first performingright organization to collect overa half-billion dollars for its members. Of that, $371 million was collected from our customers - the users of music - for performancesin the United States alone. Negotiating licenses with customers and collecting the fees is one of ASCAP’s most important functions. Yet ASCAP’s licensing efforts are Vincent Candilora probably the least familiar area of our operation to our members.Under the direction of ASCAP Senior VPof Licensing, Vincent Candilora, a teamof 168 staffers is responsible for licensing tens of thou- One-third of ASCAP’s overall revenues are generated from Radio Licensing the use of musicon netFortunately, on the radio side, work, local and cable television. The ABC, negotiations have historically resulted in agreementon license CBS and NBCtelevision networks pay fees and terms without rate court litigation. As with television, ASCAPflat dollar ASCAP has dealt with members blanket license fees. of the Radio Music License License fees Committeein negotiating music for local television are the prodin the explodingdig" license fees for five-year terms. uct of both rate court litigation ital world. For commercial radio, ASCAP and negotiations between Since ASCAP’s offers two types of license agreeASCAP and the Television customers are so ments- blanket and per program. different (see box below), our Music License Committee. Moststations choosethe blanket Committee members are broadlicensing effort is organizedinto agreement under which they pay specialized teamsresponsible for casters representing the broad an annual fee, billed monthly, spectrum of the television indusdealing with specific types of try. This licensee group, more and based on a percentage of the licensees. than any other, has tried vigor- station’s annual revenue. Theper programagreementis chosen priWeb Site and ously to reduce the license fees marily by stations whichuse less they pay for the use of music. Internet Licensing feature copyrighted music, typiIn presenting our case, ASCAP The Internet provides a cally employing News/Talkforhas a team of negotiators comdynamicnewsource of licensing mats, or religious programming. prised of our licensing executives revenue for ASCAP and we are Under the per program agreeaggressively pursuing its oppor- along with counsel and indepen- ment, fees are principally calcudent experts on music usage. Our tunities. Withnearly 1,000 sites lated based on actual music nowlicensed, our revenues from goal, of course,is to proveto the usage. industry the ever-increasing the Internet tripled in 1998. Our For non-commercial radio, value of ASCAP music to their efforts have been greatly such as college radio and programming. That is why enhanced by the development NationalPublic Radiostations, if recruiting and retaining members and use of the ASCAP EZ Seeker with the greatest numbers of per- negotiations are unsuccessful, a (see technologyarticle, page8). rate arbitration proceeding is held , Royalties? WHO ARE ASCAP’S CUSTOMERS? ASCAP customers include a diverse group of businesses and organizations that use music in manydifferent ways. In order to license effectively, ASCAP employs 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 stations ~ The majority of the 11,000 cable systems, the satellite delivered services and virtually all of the cable program 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 concert presenters Q Web sites and Internet service providers ~ Tens of thousands of "general" licensees: bars, restaurants, hotels, ice and roller skating rinks, conventions, retailers, shopping malls, circuses, themeparks, sports teams and leagues, dance schools, health clubs ~xand many other businesses including bars. ASCAP! labor intensive. CopyrightOffice.a blanket concert license and a per concert license. Radio is our second largest source of domestic revenue and 26%of our overall revenues. Assuming a favorable outcome. While we await the court’s decisions. which in that expands exemptions from in ASCAP that the Copyright Lawrequires turn means moremoney for distrithem to have permission to use music licensing fees for bars. virtually all orchestras. ASCAP expects to collect substantially morein license fees coveringthe interim years as well as the future. meantime. the licensingstaff has the initial task of identifying events to be licensed. an agreement ASCAP cu~x~ lg99 Sticked This indicates that an ~GRIILL u~ establishment pays an ASCAP entered into with the Federal Government to avoid antitrust rrs ee~ ~u~loes ~ I’ulu sn~ licensing fee for the musicthey claims. hotels. Withrespect to the vast number of concerts and recitals that take place throughoutthe country in large venues and small. Wealso offer two forms of license agreementsfor promoters and presenters of concerts. and the system operators to which households subscribe for their cable services. we www. In the licensing area of the country. they rely on Licensed BeverageAssociation. menton rates in negotiation with information from publisher mem.~e. Of course.in such a ca. such as HBO. Under the ASCAPConsent CUSTOMER CARD Look for the ASCAP Customer Decree. ASCAP and the financial impact of the unfair different businesses and account customer are then bound by the music licensing amendment and for 14% of overall revenue. bution to our members.a lobby. with administration For more this recent and customer service located in music licensinformation. have a right to initiate a court saves themsignificant dollars on programssubmitted by our writer proceeding for determination of credit card processing. over 28. Whilemost rate makethe jobs of our licensing ASCAP collects substantially proceedings take place in New field representatives a little easier.beenqualified for the card. individual customeror group pre.travel and mouthand clipping services. ASCAP’s licensing efforts are aimed at both the program services.insurance.~ a~l’ee VP upon. such as on any terms you and they Inll. and other methods. We’ve General Licensing for sonable. more in general licensing than York. ASCAP is licensing the cable industry on an interim basis. the advantages and fairness of partnering with ASCAP. reasonablelicense fees.ascap. ASCAP music. Most businesses know that benefits both our customers that the ASCAP license provides and ASCAP. wirelessproducts. Colleges and universities have three license options from whichto choose. · restaurants and retailers. require a great deal of ASCAP Customer Benefit Card is "selling" to convince them that specifically designedfor restauthey need an ASCAP license and that music enhancestheir bottom ASCAP line. Showfime. RestaurantAssociationresulted in ASCAP license. and the introduction good value and choose to enter of a Customer Card similar to the into agreements with us. circuses.etc.~logue with our customers through negotiate rates on behalf of simies to broacast Station5 or calIle sen’ices several new marketing initiatives lar types of customers.our customers. under a recent amendment Another successful component any of our domestic competitors. restaurant supsuch as Internet research.S. This reminds our this category. licensing the representatives must stay on top users of musicis at the very heart Marketing of newbusinesses opening every PaymentSystem. Someof these to the resourcefulness and tenacity. customers first-hand just how restaurants. ASCAP and the plies. It As our readers know. f Music Makesi Cable Licensing The cable television industry has undergone tremendous change and revenue growth over the past two decades. ASCAP Member Card. The however.It is no easy task! is committed Our general licensing team is to overturning two-tiered. the general in NewYork with jurisdiction love most is by the members of licensing operation is the most over ASCAP’s Consent Decree. promotionmembers. we have an orchestra agreement negotiated with the American Symphony Orchestra League and a college and university agreement. In a rate al merchandise. certain of our customerrelations program We are proud of our proven small businessesmayinitiate rate is bringing ASCAPmembers strength in this area. [Diffe~the i! Educational and Symphonic Licensing ASCAPhas special agreements for various types of presenters in this field. To date. Licenses for different businesses are designed with their Amongthese programs is a needs and those of our members cooperative advertising campaign in mind. It bers on their rental agreements. court’s decision.000 sent to a federal judgetheir cases customers have requested and the fees each believes are rea. and a field ing amendvisit the sales staff servicingall regionsof ment. and perform. ASCAP bears the burden inaugurated these innovative proASCAP’s general licensing cusof provingthat its proposed rates grams to minimize the negative tomers encompass a vast array of are reasonable. bars. recitals and similar events . offices in Atlanta. In order to ensure consistency. As with other customer Phil Crosland are aggresgroups. However. MTV. For example.under the auspices of the U. Giventhe proceedings in the city where directly to our customersto speak tens of thousandsof customersin their federal appellate court sits. grills andretailers. wordof court proceeding. ASCAP tries to identify to changethe dia: As a member afASCAP 3ou have the trade associations with whichto sively working option to issue direct pet~. to the copyright law. ice androller the decisions in these cases will muchmusic enhances whatever it skating rinks.of the ASCAP day across the country and conis a challenging job requiring vince them of the value of an ing effort led by the National skills in education. if we do not reach agreeuse. ASCAP has been engaged in long-standing rate court proceedings with the cable industry to determine reasonablefees as well as other matters. An orchestra’s license fee is basedon a percentage of its annual box office receipts from the previous season. you must the American Hotel and Motel under the direction of ASCAP Association. These ml%rm ASCAP thzwugh the Member initiatives are designed to show Services Department that you have Proprietors Association of licensed your work directly becauxe )ou our customers how valuable America and the National are not entitled to be paid by ASCAP Jbr music is to their businesses and perfi~rmancesyou have licensed yourse(fi ~ . theme be reviewedby the Federal Court is they do and that the musicthey parks and more. colleges and universities that use music are known to ASCAP and are licensed. com.rmance licen. To do so. our customers rants. Some. businesses have never heard of passage of an amendment Copyright Term Extension Act Success means continued growth ASCAP and do not understand revenues. creativity. Our licensing Withoutquestion. the Bowling of MarketingPhil Crosland. which covers the wide variety of performances that take place on college campuses. eal."~ Monies to writers and pnblishlar" principle in the design of its payment system. "1 find thai members who distribution equally between decide to deepentheir undersland. For example. endup seeing ilk of a perfi)rmance logic. Theyrealize it is designed minedby dividing the I.g. Peter Boyle. p. idr.’k. Until recently. guided by a ~ "fol h)w-t h e. Generally.500 ( I 0./]?rcnl .. The averaged Performance Plan insures that writers on this plan receive exactly the same amountas they would on the Current Performance Planonly they will receive these royalties over an extended periodof time. Every performance picked up OIIF ( llS’I(HHCI’. evenings). atOLlA.Ol’i(’~ tl(’$’/~.~ (41 the .’lu is Pro’! 7uw.~t hdll¢’l’ ltlldcl’There are billions of ASCAP ’ . mostimportanfiy: lional rm’allic.w and ASCAP is comnfittcd to pay L~xttc. ASCAP Iracks inusic use on these and other mediaand live venues to determine what works are pedkmned and the appropriate writers and publishersto be paid.~. Todd Bmbec.d tf -. wc /.951. Determiningcredit xalucs on an annnal rather than quarterly basis enhances the fairness of our distribution system as it eliminates these fJuct LUHiOnS and allows members mbetter’ predict their cltrnings?’ A writer’s or publisher’s royab ty chuck ix determined by muhi plying the number of credits earnedIk~r performances of his or her works during a qtlarler by the dollar value of a credit lor IJlat There are two methods of paymentsto ASCAP writers: The Current Performance Plan and the Averaged Performance Plan. rate andefficientbasis..o(’s ah(ua liccnWtt~." IIIUIII/)UF.g. This change eliminates the quarterly fluctuations in credit values based on whenrevelme is receixed during the year andthe number of credits available for distribution in a quarter. I ~ lll~ out what a particular j · where I · · i IYlY performance is ~/the music ix ~. worth? j used (e.THE ASCAP PAYMENT SYSTEM EXPLAINED Part Two: Turning Performances Into Dollars to makesure all members receive what they earn in the fairest way possible. quarter.~. "There are many steps in the calculation from performance to royahycheck. Mostwriters choose to be paid on the 100% Current Performance Plan.~l~tlldin. LS’("I..~. radio. mornings.. and so on. For each member.tal hum- ~. for credit wasdeter whatever reason./brm.lif3’.z~ u! hrm ~ur’ certain numberof credits.. Each m.if a wriler earnedI0.x’di.*o. 20 quartersor five year averageddollars (60%) and 40 quarters or ten year averageddollars (20%). ASCAP’sVice President and Chief J:~cononliM. the writer’s royairy check would be 549. network TV.II(I’(’ (IF/Jin ASCAP’s survey generales a t’h’s’ ~uill /r. revenues collected fromradio stations are paid out to those memberswhose works are perfk~rmed on radio." says divides the dollars available for writBrabec.000X $4. gives many seminars throughout the year to help members understand the payment Todd Brabec system. r tHtC ber of ASCAP credits being processed for wrilers or publishers in a performance quarter into the total number of dollars a’<dlahle for distribution. ""~’"~ ~--. but each step ix buttons coveringthe sameperl:ormance periods and ASCAP important to an-iviugat the filirest and mostol2}ectivc payment.re’ ing our members on a fair./a .ere and publishers. The Averaged Performance Plan averages the dollar value of performancesover time. It is designed to smooth out fluctuations of distributions fromquarter to quarterand to provide a steadierstream of income. royalties fi~r a single musical work. Thenumberof credits for and howwc collc<t it~h’rtl~teach performance depends upon several factors.z." sztys Boyle. ASCAP Senior Vice-President and Director of Membership.. .X .%’. · howthe musicis used (e.~. ix responsible for overseeing the design of the ASCAP surxeys and payment formulas to ensure their accuracyand fairness.~ visual v. ASCAP nowcalculates credil vahJes on all alll/tlaJ rather than quarterly basis. in any surxeyed medium. ASCAP is ~ afternoons.. amfu~dm. the dollar value ing of the payment system. revenuesfor network television are paid out lbr pertbrmances on network television.g. value.~ in di..%’(’AI’ .. FH. Peter Boyle Effiective with the 1999 June publishers’ andJuly writers’ distributions. 1 licensed performanceseach year I{’lwnenl .ncu.pay cable): and · when the music is used (e.t. In ers are paid out mseparate dislriother words. "To do so.95. In lhc /.."wework xery hard tit continually fine-tuning the ASCAP payment system to arrive at the relative value of these performances of our members’ works. -~.. · · does ASCAP figure ’ theme).000credits fi~r performancesof her worksin a threemonth period and tile valueof one credit wax S4.~ud at It. distribution paymentsare based on a combination of currentperformance dollars (20%).’Jl(’d If) (jr.’r credit ix worlh a certain dollar ..are the producl of the calculation tm the next two pates. back f ~"’"’~’ ~ 7hL~arli. which meansthey receive full valueof their roya~ie~ for payments in the current distribution quarter. The Averaged Performance Plan replacedthe "Four Funds" planof distribution effective in the Julyt999writers’distribution.V.’.wcnl. etc. jazz. on networktelevision. or duration. not only the length. etc. a prime time performance is weighted highest at 100%. ASCAPalso assigns "weights" based on license fees from other surveyed media. This factor ensures that the license fees that ASCAP receives from any medium are paid to writers and publishers for performances on that medium. license fee determined accordingly. Just as the type of performance(e. web sites. urbancontemporary.000 in license fees -specific stationsis paid annuallywouldreceive a to the writers and pubhigher value than the lishers of works with persameperformances on formances on those staa station that pays us tions. The licensee weight is also referred to as the "hookup" weight with respect to network television. Latin. or holiday also affects the weight. with weights for stareflect whatis actually tions paying more or being performed in each less than the median medium. . such as the Top200 live concerts. In the case of radio.g. $15. Feature performances receive the highest weight at 100%. reflecting the number of stations carrying a broadcast. Advertising music (jingles) are weighted 3%.or cable station (or groupof stations) and the number of hours in eachsurvey of performances. but also the instrumentation will affect the number of credits a particular performancewill generate (full orchestra. background music services. the money received from cable is paid out for cable performances. the time of day during whichthe performance takes place also affects the value of a performance.Theperiod with the fewest number of television viewers.TURNING PERFORMANCES Each type of performance is assigned a "use weight. Viewership is highest during prime time and stations generate the most revenue in those hours. ASCAP conducts separate surveysof country." which determines its value relative to other types of performances.). or holiday.For exampie. chamber work. weekend. in the case of live symphonyand concert performances. perforpop music stations so mances of a song on a that the total monies colstation that pays ASCAP lected from those genre $500. background) affects the value. and For example. television.. the overnightperiod. symphonic and chamberconcerts. theme. the ASCAP Board adjusts the useweights to reflect changes in the industry. classical. In other words. Theweight of a performance in the afternoonis 75%. religious. For example. Thelicenseeor "station" weight reflects the license fee paid by a radio. muladesignedto assign relative values to the widest possible rangeof types of performance. tours.airlines. Ontelevision. Whether a show airs on a weekday.000 annually. Themeweights range from 25%-60%. the value of a performance can vary depending on the time of day or night or whether it takesplaceon a weekday or on the weekend. Thereare many different use weights outlined in ASCAP’s weighting for. ethnic. Underscoring is generally weighted at either 42%or 54%per 3 mira utes. This "follow-the-dollar" The median station system ensures that perweight is given a value formance payments of 1. circuses andice shows. generates the least amount of credits. Periodically. These additional credits translate into increased royalty payments for writers andpublishers of qualifying songs. which serve as a proxy for distributionpurposes. For example.E I X ~ CREDIT VALUE = I $ROYALTY I When all of these factors are computed. hotels. the next stepis to allocatethesecredits among all of the writers andpublishers of the work basedon the share each should receive. bars and other licensees. non-surveyedlicensees (bars. if twocowriters of a song share royalties equally. For radio only. eachwill receive50% of the total credits. It would be impracticalto survey all general licensees of ASCAP’s works. ASCAP is advisedof the correct sharesto be paid when memberssubmit Title Registrations.^. each writer’s publisherwill also receive50% of the total credits. After establishing the number of credits generated by a performance. wearrive at the number of total performancecredits.INTO DOLLARS ] CREDITS ] x Fees collected from nonbroadcast.Songs that reach a certainlevel of radiofeature creditsin a quarter receive additional performance credits in that quarter for their radio sucess. I s. restaurants and the like) are applied to broadcast featureperformances on radio and all performances on television. Performances tracked on television and radio serveas an indicator of performances that take place at restaurants. These payments represent the increased licensing valueto the repertoryof frequently performed songs. such as current chart songs. Basing the distribution of general fees on surveyed performances on radio and television provesto be the mostcost-effective wayto paytheseperformance royalties.The final stepis to multiply credits by the appropriate credit valueto arrive at the royalty payment. . Similarly. cable and PBS.Channel ~ Disney’ Channel LJE! Entertainment LJ Encore F. The ASCAP Census Survey of Television and Cableincludes: Network’IV J ABC. bers and make payment. the specific program (including episode titles for syndicatedseries). promotional and ASCAP must have a cue public service announcements sheet on file to credit our memon local TV. And. Paramount. WB. logos and promos. Becauseit is such an integral part of the total viewingexperience. sports. of course.i Discover). which include feature performances. underscoring. broadcasters or foreign societies.slandi. commercials. In keeping with ASCAP’s "follow the dollar’’ policy. as well as locally origi- Cable TV All programs on the major cable services.%. ed programs and films on staetc.v~lain hon ~e trdck. Univision . CBS and NBC networks . themes. The cue sheet indiPBS cates how the music is used [~ All PBSprograms. icense fees collected from broadcast and cable television constitute ASCAP’s largest source of revenue. The sheet also annuallyin license fees indicates the composers. Somelocal television stations opt for a per program license. or completecount.s ivsuc.ht thi. of most music performed on broadcast television and the majorcable services. all regions of which has the country and all types of become the cable services and local TVstaindustry stantions." ASCAP tracks all types of uses in our surveys of performances on television and cable. and movies of the week Locally produced programs for which ASCAP is paid on a per-programbasis music to television: "Musicis a vital component of virtually all programming . ASCAP Vice President of Film and Television Music Nancy Knutsen talks about the Nancy Knutsen importance of L nated shows.THE ASCAP PAYMENT SYST M XPLAIN D Part Three: Broadcast and Cable Television 7hi. and music in ads.Jl/. ASCAP conducts a census survey. ASCAP matches the program schedules to its computerized cue sheet database.. every genre of music is represented. All of this infimnation is vey of performances on the critical to determining how smaller cable services and PBS mucheach composition will be stations.k’oblto the cal(’tt/athm of roy(dlie. cable monies are paid out for cable. promotional and public service announcements) _1 Fox. hh’nli/?.L/bro . all called EZQ.’etW ~l belier umier. we may not always notice the various uses of musicwithin a program. days of the year. ]tl Ihe /a.Wi.i F/X ~ Family Channel ~1FLIX LJ HBO ~ History Channel Learning Channel Lifetime Movie Channel [_1 Nashville Network Nickelodeon .~ arlic/e is Part Three q/a seric. under which they only pay ASCAP for programs containing ASCAP music not otherwise licensed. monies attributable to local television are paid out for local television performances. and music in are entitled to be paid. Tracking PerformancesOn Television AndCable The ASCAP survey of perlbrmancescovers more than 7.wem. local programming on paid as well as which members local TVand PBS. movies-of-the-week. ASCAP is paid an annual blanket license fee by most of the television and cable industry for the right to use any music in the ASCAP repertory. ~c will e.’/iJl’llttltl(’f’. ASCAPpurchases computerized program schedules from two major vendors. is a program schedule.¥.~ingh’ pe(/brm(lncein any surveyed medium.~ designed u~ ~. makingup to close to 45% of overall domesticreceipts. and a substantial portion of incoming foreign receipts. we]ooked ~il thed(/~’rent /~lctot’slll(it . The sample survey of these perAmongASCAP’smany techformances is designed to be a nological innovations was the statistically accurate reflection development of unifk)rm cue of performances taking into sheet software. and public affairs. Cuesheets list the detailed information on each of the compositions included in the TV program.i Country Music TV L. and the date and time of broadcast. including: [_l A&E Thestarting point for the various television surveys. moniesattributable to network television are paid out for performances on networktelevision.ive ~mr t/hT. To identify what musical works are performed on both broadcast and cable television. distributors.5 million hours annually.all performances (including music in commercial.J Plex ZI Sci-Fi Channel _1 Showtime STARZ! Tl NT ~1Turner Classic Movies 7j USA Identifying Performances The Importance of CueSheets Local TY All syndicated programs. feature films.feature films. and the fees for public television are paid out for performances on PBS and its stations.vtdtu] cable telerixion. Most of the major studios and proSeth Soh£man . episodic series. whether they are a complete count or a sample survey.suc. theme.writers and publishers of each composiASCAP conducts a sample surtion.~ qf lhe AS(’AP Paw~wnt .S (UI bt~a&a. underscoring. such as news. accountall times of the day. dard.000 or more performance. syndicat(feature. The program schedule lists the stations broadcasting each TVprogram.all programs D American Movie Classics i_l Black Entertainment TV ~lCarloon Network TI Cinemax Cl Comedy Central L. Cue sheets are provided to us by the program producers.) and the duration of each tions with S20. ~lllil V(dlle [)c’l. Univisionpays license fees for all performanceson the Univision network as well as all performances on the local TVstations owned by Univision. The number of affiliates to carry a broadcast. With respect to the Fox.Thesetapes are used to supplement the cue sheets and logs. Sweden. society to dollar" and. called SHOW. etc.has made it possible to dramatically increase the numberof performances we can processin a distribution quarter. time. we are being paid interim license fees that are significantly lowerthan those paid by network or local television. ASCAP collects its ownperformance inforEachone of these factors is designed to marion to help identify the use of ASCAP ensure that ASCAP’s payments "follow the music. Becauseof this.. sion programs and films are frequently broad21 Thetime of day of the performance . In someterritories. The foreign performingrights organizations with which we have agreements monitor broadcastsof our members’ works in their territories. theme. ASCAP also receives logs from broadcasters for programsthey produceand airing schedules for commercial. Netherlands. Tohandlethis volume. weindependently make tape recordings of television programs. wehopeto collect anddistribute more in license fees covering the interimyearsas well as the future. Paramount. Spain. sometimes with foreign languagerifles. These fees are distributed for the performances in Univision programs and the local programs broadcast by the Univision affiliates.jingle. These multiple sources of performance informationallowus to make accurate distributions to our members for television performances.as well as other technological resources. in a fair andobjectiveway. notes: "ASCAP receives over 60. The gramproducersuse EZQ. Germany. Performances Outside TheUnited States . overnight. Seth Saltzman. For example. Director of Distribution. The score.As we all know. year of production. and 21 How much a particular station.’’ When a cue sheet arrives at ASCAP electronically via EZQ.and howmuch each station pays in license fees determines the "licensee weight"affecting the value. the information has to be keypunched manually into SHOW. in Austria.PBSor cable TV. Assuminga favorable outcome withrespect to the litigation. Americanfdms and television showsare immensely popular throughout Europe andin other parts of the worldas well. SHOW stores all necessary information for distribution purposes.the United Kingdom. in much the samewaywe license local television. ASCAP is the only U. the data are automatically loaded into ASCAP’s cue sheet database.CBSand and cinema performance statements NBC .under.S.original airing date. groupof sta.prime cast. etc.that utilizes an innovative database (EZmance vis-a-vis another. Animportant part of our role is to ensure that societies aroundthe worldhave all the informationand documentationthey need about the worksin How Performances Are Valued ASCAP’s repertory to properly identify and Eachsurveyed performancegenerates a num. number of affiliated stations that carry a networkbroadcast is also taken into account. member’sworks. or service paysin license fees.feature. ber of credits basedon several factors: ASCAP also monitorscertain types of perfor21 Whetherthe performance took place on mancesto ensure proper crediting of our network TV.pay on performances. In the cable area.movie title.actors. whereAmericantelevitions. publishers and ownership shares of all musiccues.reflect have an International MonitoringUnit (IMU) the relative value of onetype of musicperfor. Italy.whichgreatly facilitates the processof preparingcue sheets and identifying performances of our members’ works. Asyou can see. producers. 21 Thetype of usage . as well as the writers. France. weekday. weekend. episode. impacting the credits earnedfor cable performances. Switzerland. Theyforwardto us the royalties due for distribution to our members. When cue sheets are fried on paper. local TV. license fees to ASCAP are paid by each individual affiliated station.Finland. I sion and therefore performances on these networksgenerate the nighest royalties. ASCAP has been engaged in long-standing rate court proceedings to determine reasonable fees as well as other matters. there are several variables that go into the crediting of performances of musicon television and cable.pay the nighest license fees in televireceived fromaffiliated foreign societies.000cue sheets and processes tens of millions of pieces of musicperformed on television and cable in a year. Whilecue sheets are the main source of performance information for TVprograms. Ireland.and WB networks. Theyallowus to conduct quality control checksandassist in identifying performances in locally produced programs and announcements. Maxx) to verify the accuracy of television The three major networks-ABC. In addition.promotionaland public service announcements. This information includes such detail as series.we have a dedicated professional staff devoted to processing cue sheets and matching them with the performance data. The development of EZQ. basedtrade publication are loaded ma. country’s use of American music. /n lhe ble. ASCAP has also developed a new ASCAP developed the EZ-Maxx database called the Works technologyspecifically for this yielding excellent results.sion programs are frequently tributed by 41 performing right broadcast. Finland. When our members’ also assigned CAEnumbers. This database is ry.THE This article is Parl Four of a Se~4i~’S ~~~’~rig~]~~ tO ASCAP our mem- PAYMENT maintainsan electronic listing of societies.August and November. we¢¢rplainedhowwe utions a year: in February. music is used. France. So that our members receive their money bclwa better understanding qf the from abroad as quickly as possi. society to have an International and November.foreign sub-publishers. local copyrightlaws.vl isxue. Thesesocieties are similar President of to ASCAP and we cooperate with International them in a number of ways to Roger Greenensure that our members receive away heads royalties from performances of ASCAP’s their works in foreignterritories.and type of media(film.Switzerland and the United ized list containingactively per. Your CAE ber will remain with you even if foreign society pays ASCAP for and join anothuse of our members’ music on you leave ASCAP er performing right organization.chart."The first step in own territories. we immediately forward of important information about the songdetails to the local socimusicalworksmoreeffective than ety to ensure that our members are ever before. Sheets. credited.. Societies use the informa.etc. radio. that tremendousexpertise and knowlcountry’sperforming right society edge to the job. TheWID utilizes statecations on a weeklybasis to spot of-the-art technology that elimi. Senior Vice right. ASCAP is the only U. International Throughthese agreements. as well as their music writer and publisher CAE num.~’tern. Once ASCAP has disseminated into an electronic database on a documentation about our repertomonthlybasis. Germany.S.collect their shares directly via try that has laws protecting copy.whichis associated with numfromlocal musicusers.& Country) provided by a U. often preventidentification bers for mostof the world’s per. City mediaexcept television and cine. the types of Author & Editor or Publisher) uses licensed.ASCAP works that appear in the nates duplication of works and charts.users. TheWWL is issued to perits ownperformanceinformation forming and mechanical right to help identify the use of ASCAP organizationstwice a year. etc. Each your legal name. achievemoreaccurate crediting of Among the other international our members’ music: tools used to help societies Television. Royalties earned from foreign this process happens as soon as Youare assigned territories vary depending on each you join ASCAP.ent ~$~l. When ASCAPworks makesthe cataloging and sharing appear. ASCAP societies. "An important collects the license fees fromthe part of ASCAP’srole. or WID.). cartridge and CD-ROM forMonitoringUnit (IMU)that utimats.income for ASCAP mances in venues ASCAP members.Kingdom. are the WWL (WorldWorks List). varying payment schedules Any pseudonyms you may use are dependingon their owndistribution policies.licensinganddistribution policies. the royalties are which are linked to your legal name. namelymovietheaters. however. in May music. This numberis very takes an aggressive approach in important because you must have monitoring performances of repertory in foreign terria valid CAE number and be a cur. Information Database.soutsidethe Becauseforeign royalties are Umted States. Italy. ASCAP collects world. SUISA. UK’s PRS. The foreign Greenaway. Ireland. members can receive royeign countries are an ASCAP alties from abroad for perfor[[ ~ important source of is not ~k.and crediting of our members’ forming and mechanical right works. usually with foreign organizations from around the language titles. Most of the revenues received one fourth of ASCAP’s revenues. televilion ~f rrLva/ties /~Jrpet:fi~rmanees sion.Date.’. Spain. Sweden. For this reason." says local music users. where American televiformed or important songs con. Wealso forward docuSome foreign societies prefer to mentation to all of our affiliated receive songdetails in the formof societies for any ASCAP work index cards.able to license under our Consent alties constitute approximately Decree. tion on these cards to distribute Live Concert: Concert perforroyalties for performances in all mance details (Venue. performancestatements received As administrator of the WWL. fromaffiliated foreign societies. factors suchas artist (or of an artist whichperlanguage and the cultural and forms ASCAP repertory) who are businesspractices of our affiliated on tour in a foreign territory but tion to our members. ASCAP provides the WWL lizes an innovativedatabasetechwith details on all songs in our nology (EZ-Maxx) to verify the repertory that havesurveyedradio accuracyof television and cinema performances in the UnitedStates. Each foreign society tracks performances in its ry to properlyidentify’ andpayon performances. the fees collected number. Currently. ~/’ wor]c~ in terrimrie.ASCAP rent member of a performing right tories. In thi~’ ixxue wewill well as periods of performances provide an overviewoj the co/lee. Cableand Cinema: exchange necessary information In Austria. paid based on a country’s local oyalties earnedin for.’ andvalueper/br. in microfiche. it is the obligationof ASCAP’s then reviewedperiodically and a affiliated societies to ensurethat computer generated set list performances of ASCAP repertorequest is issued to any Manager ry in their territories are credited. they team. forwardedto ASCAP ~br distribugive D . Hereare some of the initiasociety in order to receive per. whichuse cue sheets. track. May.tives ASCAP has developed to formingroyalties fromabroad. The WWL is a computer. or representative of an ASCAP In reality. the Swiss society. foreign roy. ASCAP has agreements with foreign societies because most publisher members representingvirtually every coun. purpose whichcurrently runs parallel to Radio: ASCAP also reviews the WWL and will eventually various international musicpublireplace it. klenti~. wemake four foreign distribkl. Greenaway brings When ASCAP works are performed in a foreign country. from foreign societies amountingto approximately $137 by ASCAP are paid out to writer members million in 1999. tape. The Fiche lnternationale and Cue Netherlands. "is to ensure that society then forwards the royalties societies around the world have all the information and documenearned to ASCAP for distribution to our members whose works tation they need about our members and the worksin our repertowere performed.Each dismanees on broadcast and cable tributionlists specificcountries as lelevisk~n. a nine-digit CAE(Composer.S. A welllicense the worksof our members Rogo-Gmenaway known songin their territories andwelicense the worksof their members in the writer himself.4S(~4P P~lyn. or fiche internaentering the Billboard Hot 100 tionale. and a former Chairman of the Board of the UnitedStates. 4. ASCAP’s expertise in this area has helped manynew and wellestablished societies to license mediasuch as the Intemet. cinema operators. Technical Visits: ASCAP makes routine technical visits to all of its affiliated societies to ensure that our repertory receives equitable treatment as well as maximum compensation.have not yet provided ASCAP with set lists. August. Italy (SIAE) $11. Canada (SOCAN) $9.satellite TV broadcasts.S. 9. August and November 1999. May.7 million May.S.Mayand November. Japan (JASRAC) $10. based trade publication that providesfilm boxoffice charts by territory is reviewedand cue sheets are forwarded monthly to the appropriate society for any film containing ASCAP repertory that enters the boxoffice charts.6 million . 3. Spain (SGAE) $4. and November. documentation andlegal experts take part in the visits so that they may bring their considerable expertise whenreviewingthe distribution. Theatrical Films: A U. Britain (PRS) $25 million Distributed in February. . Germany(GEMA) $18 million .2 million February. Upon receipt of the set lists ASCAP notifies the appropriate affiliated society(s) of the performances and encloses documentation for all of the performed works.and licensing and financial practices of our affiliated societies. Netherlands (BUMA) $6. 2. Wehave the longest standing relationships with foreign societies and the deepest understanding of how they do business. France (SACEM) $12. live concerts and other media. August and November.February. Mayand November. Hereis a list of the top ten societies in terms of 1999 revenues distributed for performances of ASCAP repertory: 1. August and November. This has in turn heloedto increase distributions fromthese societies. May.3 million February. Mayand November. 10.6 million February and May. 7.6 million . ASCAP is the most effective U. Australia (APRA) $4. 8. Legal Assistance: ASCAP provides legal assistanceto anyaffiliated society having difficulty licensing ASCAP repertory. It is through these exchanges that ASCAP can identify areas that require special initiatives on our part to make sure our members are properly credited.3 million Mayand November. Our distribution. May. Our revenuesfrom foreign territories havesteadily increasedas the result of our efforts and the growing prominenceof American music abroad. Austria (AKM) $3.February. performing right organizationin collecting foreign royalties.5 million February and August 5. 6. documentation.