Legal Questions

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DrVideo
Posts: 12
Joined: Fri Oct 20, 2006 11:24 pm

Legal Questions

Post by DrVideo »

I'm quite ignorant in the area of business licenses and the like.
So Please go easy on me.

I have been approaching a few pizza places to see If there is interest in a 1 night a week family karaoke session. I have had some resistance to the idea such as liability concerns, etc. One owner was mildly interested in the Idea, however he mentioned that he would have to get an entertainment license for his business and asked if I had a business license. I told him that I never really thought about that. As I not asking for any money. I just like to sing and host Karaoke. I would accept tips to help with gas costs to the venue.

Any advice on how to proceed. Mind you even if things took off I still don't have plans to make this a full time venture. have a steady income as it is. And I would not want to do more than about 2 - 3 events per month.

Thanks for any and all advice. :roll:
Jam on it!

dave
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Joined: Sun Sep 18, 2005 8:02 am
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?

Post by dave »

as i understand it yes you need a business license
you also need to have legally purchased all the songs you might play
and the venue must also be licensed to play music publicly, that is they must have some arrangement with the RIAA or something. I'm not quite sure how it works, i'm sure some KJ will chime in here with the details.

-dave

blucaso
Posts: 10
Joined: Mon Nov 13, 2006 10:04 pm

Liscensing

Post by blucaso »

Sorry for the late reply, Dr. Video, but here's a couple quick pointers, and a resource that might help:

1) Any public performance of music by copyrighted artists requires the owner of the establishment to negotiate a license from ASCAP, BMI, and/or SESAC. This is to ensure payment of royalties to the songwriters, whose songs will be used to entertain the public. This license can be anything from extremely inexpensive to very expensive, depending on the number of patrons on average, the number of nights per week the music performances are being played, whether there is a cover charge, and whether they are buying a "blanket" license or a limited or one-time only license. There's way too much detail and legalese to go into, but essentially this is the business owner's responsibility.

Please note that this is NOT required for a private event (wedding, birthday party) with no "public" admission.

The risk to any business owner hiring a performer of any kind without paying for a license is that eventually it will get noticed (if they advertise or list their Karaoke night or their upcoming bands, this will get them noticed), ASCAP or BMI will send an auditor to the performance to write down the songs performed, and then they will sue. There was a recent article in the local weekly alternative about actual ASCAP / BMI lawsuits, which they rarely if ever lose, and they can be scary.

2) My advice on a business license is simple - if you're running a business, get a license. It's usually less than $150 a year, depending on your local municipal regulations, and it will put everyone's mind at ease, especially yours. If you're not charging any money and just trying to have some fun and take a few tips home, then you probably aren't worrying about this yet.

3) While you're at it, once you get to the point of charging money and getting a business, you should consider treating it like a business. Go online or to the local newstand and check out Mobile Beat magazine, it's a good resource for learning about the business end of things, and I highly recommend it.

Good luck to you!

dave
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Joined: Sun Sep 18, 2005 8:02 am
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:)

Post by dave »

thanks for that info! awesome!
:D

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