Earl Clark... you are 100% correct my friend.
If you record a cover tune the people responsible are required the get the license to record it. It doesn't matter if it's for fun, not profit, or mass distribution..... the license is a requirement.
This is the reason I record very few covers and they are only on my personal MP3 player at this point. Personal use is an exception IIRC.
Performance royalties are due and payable by the artists performing the covers in public. A nightclub is considered a public performance. The songwriter is due that money, and his PRO is responsible to collect it and remit the proper amount to him/her in a timely manner.
I was playing at a house gig in a NC club back in the day. One night the club owner came to us and wanted copies of our play list. Seems the ASCAP representative had showed up and was seeking payment for royalties. They looked at the jukebox records ( the jukebox was owned by the club and not leased from a music company) and our live set play list to factor the money owed. Of course, the club manager is the one who generally makes the payment.
They actually have gone into other non-music related establishments which have a radio playing for example..... if that radio is audible to the customers they are allowed to collect the performance royalties based on their formula for those businesses. The exception to this is where a business has a music subscription service.....since the PRO fees are built in to the subscription cost.
Technically and legally, there is no free music out there in the commercial/business world. Congress has written the rules and defines what constitutes a public performance. All the details you could ever want are in the book called "This Business of Music"
As a studio, it is not incumbent on you to check for proper licensing of the songs..... but doing so I think is a good idea since at the very least, the artist is aware this needs to be done.
Have you spoken with ASCAP or BMI about your situation as a studio owner to see if there would be any liability? I would think that you would not have any problems with performance royalties from your end.
A phone call only takes a minute and will provide you with the proper answer. That way, you won't have to turn down a paying customer.
post edited by Guitarhacker - 2012/09/07 08:32:04