Restaurant fined over $40K for playing music without a license

18 Aug 11 00:00 by Justin_Massoud in category Music, Piracy To news archive

If you thought going out to eat was expensive, consider the steep price for being caught playing unlicensed music in a restaurant: $7,612 per song. Now, multiply that by four. That’s how much the owners of North Carolina-based Fosters American Grille have been ordered to pay following a successful, aggressive civil lawsuit brought by BMI.

Raleigh’s local news site WRAL covered the ruling last week. North Carolina’s Eastern District court found that defendants Cameron Hospitality Inc. and John Weskett Powers, the owners of the restaurant, had “intentionally and willfully infringed upon the copyrights of four musical compositions owned by [BMI].” A judge awarded the music company $30,450 in damages and another $10,742 for its court and attorney fees.

According to the report, BMI said it had attempted to contact Fosters’ management 56 times to settle the matter. The group’s efforts were unrequited. The music played without the proper licensing agreement included songs by Michael Jackson and R. Kelly.

Powers and his partner Ralph Nelson have since closed Fosters American Grille, though maintain that neither the lawsuit nor the judgment are the cause.

BMI is a performing rights organization that handles music licensing for more than 6.5 million songs by over 475,000 artists according to its official site. As such, it has “a serious obligation” to combat unlicensed musical performances said Robbin Ahrold, BMI’s Vice President of Corporate Communications and Marketing.

“BMI licenses more than 600,000 businesses across the country, including more than 3,000 in North Carolina and more than 500 in the Raleigh-Durham area,” said Ahrold. “Very few of them ever get to the point where we have to file a court action to protect the copyrights of our songwriters.” (via TechDirt)

11 Comments

AIRBUD7
Posts: 104
Posted on: 18 Aug 11 05:41
Where did this Judge come from???($30,450 in damages) Every song in the world is on YouTube w/video!!!If they had a big screen with youtube playing...what then???
SciFer
Posts: 249
Posted on: 18 Aug 11 08:28
Can a restaurant just tune into a public radio station without getting the attention of BMI?

Can a radio station playing music while your on hold be illegal?

What's the difference?

I walked into my local mom-and-pop-owned pizza parlor and they told me they couldn't do karaoke anymore without paying licensing fees therefore they stopped doing it! But I'm like they bought a freakin' karaoke machine, they paid for the songs that are programmed in the machine! BMI = Greed
paulw2
Posts: 269
Posted on: 18 Aug 11 09:53
Down here the RIAA was suing shops for playing commercial radio without a public performance license..
Seán
Posts: 8634
Posted on: 18 Aug 11 13:08
Same way in Ireland; here run by the organisation IMRO, which charges based on seating capacity.

In fact, if you have a TV in the restaurant, not only do you need a TV license, but also an IMRO license to cover any music performed by the TV broadcasts.

Here's where they get really greedy - Do you get a discount if you buy your own music to play in a restuarant? Well, you'll need to purchase a public performance license by the organisation PPI to cover the playing of pre-recorded music on top of the IMRO license, which is also charged based on seating capacity!
kpoole
Posts: 29
Posted on: 18 Aug 11 17:44
Quote:
Originally Posted by AIRBUD7 View Post
Where did this Judge come from???($30,450 in damages) Every song in the world is on YouTube w/video!!!If they had a big screen with youtube playing...what then???
Same result for the same reason
AIRBUD7
Posts: 104
Posted on: 18 Aug 11 17:45
What if I pulled up to a gas station with my radio playing loud...Could I be sued...
deanimator
Posts: 6722
Posted on: 18 Aug 11 18:01
This is getting out of hand. I´m sure we didn´t have to put up with this years ago, at least where I come from - New Zealand.

I recently had to deal with the issue here in Germany when a band from NZ arrived here to play: we found out we couldn´t even advertise the gig because they weren´t registered. We had to put them in a bar that had a licence...long story but really time-wasting and not good for them in the end.

By the way...it didn´t help to learn that GEMA (as the authorities are called here) was organised by the Nazis!
cholla
Posts: 4033
Posted on: 18 Aug 11 18:01
I think it's only going to get worse.
There was a time when performers wanted their music played publicly even free.
For example when I was a kid the public swimming pool played a local radio station.
I think this could be fought (if a lawyer would do it pro bono) under the right to free speech. Any music allowed to be publically broadcast on the air wavs would be covered by free speech . Meaning if I can receive it I can play my radio to as many people as I like to hear it WITH me.
The RIAA & other similar groups could stop the radio stations from playing the music if they didn't want it heard. Otherwise at least in the USA it should be free speech under the US Constitution.
I've offered this solution for the RIAA before : Only allow bands to do live concerts. Don't allow any of their music to be recorded period. Not for CD's , DVDs' or other media.
That way people would have to pay to hear the music live in concert . We all know they would make more money this way because just as many people would show up at the concerts as listen to the radio or other media . Would'nt they ?
I really hate to see all of the RIAA execs in line down at the Salvation Army .
Blu-rayFreak
Posts: 954
Posted on: 18 Aug 11 23:50
Pretty insane amount of fines just for playing music. I certainly do not agree with the interpretation that playing pre-recorded music in a privately owned establishment counts as a "public performance".
Jeffrey_P
Posts: 99
Posted on: 19 Aug 11 14:23
I was having a full body bone scan recently. I noticed there was a flat panel on the ceiling that was powered down. My scan was fairly short but some patients with tumors and such may be there for hours at a time. Asked the tech about it. He said even hospitals have to worry about being sued for the content patients watch.

Too fooking much, damn Nazi's!

Jeff
Seán
Posts: 8634
Posted on: 19 Aug 11 15:15
Quote:
Originally Posted by AIRBUD7 View Post
What if I pulled up to a gas station with my radio playing loud...Could I be sued...
You would be fine, but the gas station could be sued for allowing music be played on its premises without a license. I'm also pretty sure I've heard this happening before at a garage, but can't find the link.

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