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Distributer of royalties, BMI, filed a federal lawsuit against Jay-Z's 40/40 Club yesterday. The performing right organization holds the licensing rights to 6.5 million songs, and apparently plenty of them are being played at the club, the lawsuit cites "unauthorized public performance of musical compositions." In other words, Jay-Z has been holding out and skimping on royalties owed to fellow musicians!
The Post reports that Michael Jackson, R. Kelly and over a dozen music publishers have joined forces against Jay-Z's 40/40 Club, a charge led by BMI. They are seeking "unspecified damages for copyright infringement from the club and co-owners Desiree Gonzalez - who has the primary responsibility for operations and management - and Juan Perez." Jay-Z (real name Shawn Carter) has been kept off the paperwork.
There was no snitching amongst friends involved in bringing this case to court, rather a BMI researcher spent two nights at the club last March. During that time Jackson's "Billie Jean" and "Don't Stop," "Thoia Thoing" by R. Kelly and "Gold Digger" by Kanye West were among several unlicensed songs played. A spokesperson for BMI, Jerry Bailey, said the company has tried to license the 40/40 Club since it opened in 2003, but their attempts have been unsuccessful.
These aren't the only legal woes for the club and Jay-Z, all of this is coming one month after employees of 40/40 filed a class action lawsuit:
Celeste Williams, a former waitress at 40/40, accused the club of "willfully failing and refusing to pay [its workers] at the legally required minimum wage" since the nightspot opened in 2003.Her lawyer claimed 100 staffers have been ripped off - although club management said Williams worked at 40/40 for only four days in December 2005 - in the suit seeking unspecified damages.
The suit also claims that the club was allegedly keeping a cut of workers' tips. All of this came just after a Philadelphia author sued Jay-Z for copyright infringement. The author claims the 2002 film State Property was based on his novel. Good thing Mr. Carter is so powerful!
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Hrm.
How do these laws work? So if I open up a bar and play stuff over the bar's loudspeakers, do I have to pay licensing fee's?
Im not in the music industry, but that seems a bit loopy to me.
Yes you do. But record companies rarely bother with small time venues.
gotta pay if you have a jukebox, too.
Somebody just has a grudge against Jay-Z. Its like getting a ticket for jaywalking.
I thought that clubs and bars pay a small fee to ASCAP in order to play music. I guess Jay-Z's club doesnt do that?
A federal lawsuit? Wow -- that's some grudge. When I managed a nightclub we laughed the ASCAP letters right into the circular file.
Let me get this straight:
Jay-Z downloads "Thriller" from the iTunes music store, plays it in his club and owes additional royalties to Michael "the child molestor" Jackson?
Absurd!
Yes, technically if you're a dentist office who plays the radio over the loudspeaker, you're supposed to be paying royalty fees. It's why so many places play Muzak or some other company that takes care of all of it for you. It's also why a personal satellite radio account is $12.99 and a business account is $27.99.
From BMI's website:
A “performing right” is granted by the U.S. Copyright Act to owners of musical works to license those works for public performance. Businesses which typically license music include broadcast radio and TV stations, cable radio and TV stations, places such as nightclubs, hotels, discos, and other establishments that use music in an effort to enhance their business.
There are hundreds of thousands of establishments - radio and television stations, nightclubs, hotels, amusement parks and the like - in the U.S. where music is publicly performed. It would be virtually impossible for individuals to monitor these music users themselves. Therefore, BMI acquires rights from writers and publishers and in turn grants licenses to use its entire repertoire to users of music. BMI collects license fees from each user of music BMI licenses, and distributes to its writers and publishers all the money collected, other than what is needed for operating expenses.
I think that this whole situation is absurd!!! If this is the case then they should sue every place that plays music!! I just think that they want to sue him because they see that he has two different clubs open one in New York and one in Atlantic City and opening one in Las Vegas and then in Tokyo and Macau so they want to hit him up cause he's making money!!! I say leave him alone and find someone else to hound about bullsh*t!! It's BOGUS!!!!
They tried to go after the "Small time" offenders last year . We all see how that worked out ! #9 has a valid point . It's a hell of a lot easier to go after some for whom you know has money as appose to some ordinary person with little or no money . Still if I were an artist and found out that my music was being pirated I'm sure I would want payment for my songs so it's a "Damn if you do, Damn if you don't scenario ! Posted; "Still Not Amused"
Close the joint and let's have another Duane Reade.