Hi wolfydman,
First, I want to set you at ease. I was raised in the coin-op
industry and know the Answers to your Questions. I also owned a route
of coin-op equipment myself, no jukeboxes, but that is unimportant.
All coin-op routes are basically the same, only the details change.
Vending machines are slightly different because they don't require an
Amusement Device license, the reason being is that the customer
receives a product.
Coin-op routes, especially jukebox routes, can be extremely
profitable, but the up-front cost can be high. A good machine will
run around $10K --Luckily, lenders will give 3-5 year loans on
jukeboxes, however for example, with Video Games (that may not be
popular in 6 months), which lenders consider high-risk, only 12 month
loans are available. Luckily this is not the case with jukeboxes.
They are also very durable and built for abuse from the drinking
public. The life expectancy of a machine is long, at least 8-10 years
before major componets will need to be replaced, and could be as high
as 15.. They seldom malfunction, and when they do, 75-80% of the time
it's the coin or bill acceptor that has jammed. In a *great location*
it could be that the cashbox is full! Those service calls are made
with a smile, no doubt!
You will need a Business License from the City in which you locate the
jukebox/s. It's very likely that the city will require an Amusement
Device License as well. In my city they are $25.00 per machine. but I
have seen them in other cities as high as $75.00 per machine. You
will also need to contact the JukeBox License Office (contact info and
fees below), and pay the yearly fee for royalties. The Jukebox License
Office is a ONE-STOP solution, they take care of _ALL_ the royalty
requirements, it's very easy, and affordable.
The industry standard for revenue sharing with an establishment is
50%-50%, with the owner/operator of the jukebox being (legally)
responsible for purchasing the Amusement Device License, the JLO fee,
and having the appropriate City License as well. The owner operator
is also responsible for filling the jukebox with CD's, and servicing
the equipment in a timely manner. When you place equipment in an
establishment, you should attempt to get the location owner to share
in the JLO Fee and Amusement Device License cost (called "off the
top"), however if it's a good location, waiving these up-front might
close the deal.
The wisest way to begin any route is to shop around for a good deal on
excellent equipment. Plan to buy 3-5 at first, minimum. 10 is
better. Get the paperwork ready to sign. Ask how long it takes to
deliver. Get glossies of the equipment and hit the street. Your job
is now to place equipment. Once you have 1/3 placed, sign the papers
and hit the street to get the last 2/3. You should be able to place
them all within 2 weeks. I once got 17 appointments by phone --in one
day, and placed 10 of those in the next week. Once all are placed,
keep looking for new locations, and take the least revenue producing
machine and place it in a new location until you have a route that is
producing well.
Learn how to fix the coin and bill acceptors yourself, you'll save a
lot on unnecessary cost from sending a qualified tech for a coin or
bill problem. You don't want to remove the jukebox from the premises
for any reason, except to switch machines, so you will need a
certified repair tech on call.
REFERENCES:
Juke Box Stamps Show ASCAP Royalties Paid
http://mmd.foxtail.com/Archives/Digests/200306/2003.06.15.05.html
..."
Whenever you enter a restaurant or bar with a juke box you will notice
a colored paper stamp posted on the machine somewhere, possibly
several from past years. That stamp means that the restaurant has
paid an ASCAP fee to have that juke box playing for patrons..."
Get The Points: It Pays To Play - By Wendy Day from Rap Coalition
HOW ARTISTS GET PAID: PUBLISHING 101
http://www.rapcoalition.org/source_publishing_article.htm
..."Anyone who broadcasts music (recorded, live, or in video form--
like a radio station, TV or cable station, a nightclub with live
shows, concert hall, airlines, or a juke box at the local bar) has to
pay a fee to use the licensed music to either ASCAP, SESAC, or BMI..."
ASCAP
http://www.ascap.com/index.html
..." 6. How Do I Obtain a License for a Jukebox?
Licenses for jukeboxes are available through the Jukebox License
Office. The JLO makes it convenient and economical for you to obtain
the permission you need for your jukebox by serving as a
"clearinghouse" that provides authorization to perform virtually every
copyrighted song in the United States and much of the world.
The JLO is a joint venture of the United States performing rights
organizations, ASCAP, BMI and SESAC. The JLO offers a license which
provides total access to all songs in the ASCAP, BMI and SESAC
repertories. The Jukebox License Agreement is a single, economical,
annual license that provides the authorization required to publicly
perform copyrighted songs on a jukebox. Jukeboxes that are licensed by
the JLO, must display a certificate in the title strip holder of each
jukebox..."
Jukebox License Agreement
http://www.jukeboxlicense.com/Q_A.htm#i_already
..."You have the choice of obtaining jukebox licenses from ASCAP, BMI
and SESAC directly or you may contact each copyright owner
individually. The Jukebox License Agreement, however, generally costs
less, is more convenient, and is less of an administrative burden than
these other options. If you have an establishment where music is
performed by some means other than the jukebox (DJ's, bands, tapes,
etc.), you will still need separate licenses from ASCAP, BMI and SESAC
(or the individual copyright owners) covering these other
performances. The Jukebox License Agreement only provides
authorization for jukebox performances..."
JUKEBOX LICENSE OFFICE ANNOUNCES 2005 JUKEBOX LICENSE FEES
http://www.jukeboxlicense.com/
The JLO has announced the jukebox license fees for 2005. The following
fees are 3.19 percent higher than those of 2004; an adjustment based
on the Bureau of Labor Statistics Consumer Price Index.
First jukebox:
$ 383.00 - Standard rate for the all other jukeboxes:
$ 88.00 per jukebox - AMOA Member rate for all other jukeboxes:
$ 64.00 per jukebox - Jukebox License Office
For more information, contact:
Jukebox License Office
1700 Hayes Street, Suite 201
Nashville, Tennessee 37203-3014
Tel: (800) 955-5853 or (615) 320-4000
Fax: (615) 320-4004
Information@jukeboxlicense.com
Here is the actual JLO agreement
http://www.jukeboxlicense.com/JUKEBOX_LICENSE_AGREEMENT_2003.pdf
wolfydman,
What I'd like you to do now is tell me exactly what kind of numbers you want:
What a good location will generate?
Cost of a new machine?
SOmething else?
I can give 4 companies that operate jukebox routes in the Pacific
Nowthwest, will that be acceptable, or would you like me to focus on
another area?
Please use the Clarification feature to let me know what else you need.
~~Cynthia
Search strategy:
Personal experience |
Clarification of Answer by
cynthia-ga
on
28 Feb 2005 04:01 PST
Internet Jukebox Licensing is incredibly complicated, and nearly
beyond the scope of my knowledge. I can point you to the correct
sources for information, but I don't want to interpret the text,
except in very general terms.
The Internet Muddles and Mystifies Music Licensing
http://lawcrawler.findlaw.com/MAD/internet.htm
This article appears to be about Internet radio, and it is, but it
applies to ANY Jukebox where the music is stored on a central server
and not stored on the Hard Drive of a local PC in the establishment.
An Internet Jukebox is considered a "public performance."
This article also discusses the grey areas of Internet Jukeboxes.
There is no firm Answer to your question as of this date, the industry
is too new. Internet based Jukeboxes do not qualify for the JLO
License, you must pay the same license fees as Radio, because the
music is not LOCAL to the establishment it is being played in.
**************************************************************************************
As long as all content/songs are stored on the PC's Hard Drive (no
downloading), the JLO Jukebox License is compatible, and the jukebox
still qualifies for the rates I quoted before.
Here's an example of a PC based Jukebox that qualifies for the JLO License:
JUKEANATOR
http://www.jukeanator.com/
The method the customer uses to pay for the jukebox is immaterial, but
the SOURCE of the music is paramount.
Paying the JLO License fees satisfies all the requirements of the U.S.
Copyright Law (Title 17, Section 106). There is no need to pay the
Record Companies separately.
***************************************************************************************
ASCAP
http://www.ascap.com/weblicense/
LICENSE FEE CALCULATION
http://www.ascap.com/weblicense/feecalculation.html
You would also be required to obtain licences from other organizations.
Reference:
Is the ASCAP license all we need to use music lawfully on my web site?
http://www.ascap.com/weblicense/webfaq.html
Every Internet transmission of a musical work constitutes a public
performance of that work. The ASCAP license authorizes these
performances for works in the ASCAP repertory. Internet transmissions
also involve the reproduction and distribution rights in musical
works. ASCAP licenses do not authorize the reproduction, or
distribution of music or sound recordings, or the public performance
of sound recordings (as distinguished from the music contained in the
sound recordings). To obtain these rights you should contact the Harry
Fox Agency, Inc. (the wholly-owned licensing subsidiary of the
National Music Publishers' Association, Inc.) or the copyright owner
for authorization to copy and distribute the music, and the copyright
owner of the sound recording (usually the record label) for
authorization to copy, distribute and perform sound recordings.
Information on these important rights may be obtained from the Harry
Fox Agency, and the RIAA, the record labels' trade association.
Harry Fox Agency, Inc.
711 Third Avenue
New York, NY 10017
(212) 370-5330
http://nmpa.org/hfa.html
Recording Industry Association of America (RIAA)
1330 Connecticut Avenue NW, Suite 300
Washington, DC 20036
(202) 775-0101
http://riaa.org
The copying of a copyrighted musical work or sound recording onto
your server (as when you load the file containing the work),
constitutes exploitation of the reproduction right, for which
authorization is required. Again, you should contact the Harry Fox
Agency, Inc. or the copyright owner for authorization to copy the
music onto your server, and the copyright owner of the sound recording
(usually the record label), for authorization to copy the sound
recording onto your sever.
***************************************************************************************
Here's the JLO info, and why you would not qualify for it:
Q: How do I know if my jukebox qualifies for the Jukebox License Agreement?
A: Your jukebox, or "coin-operated phonorecord player," qualifies for
the Jukebox License Agreement if it is a machine or device that:
* is used solely for non-dramatic public performances of music: and
* is operated by patrons of the establishment (not employees), who
make their selections from a list of titles: and
* is located in an establishment making no direct or indirect
charge for admission.
If your jukebox fails to meet any of these criteria, it does not
qualify as a "coin-operated phonorecord player" under the Copyright
Law and performances on that jukebox cannot be licensed through the
JLO. If your jukebox does not qualify for the Jukebox License
Agreement, you must contact BMI, ASCAP and SESAC directly, or the
copyright holders themselves, to obtain authorization to perform music
lawfully. If you are uncertain about any of these requirements, please
contact the JLO at 1-800-955-5853 or by e-mail at
Information@jukeboxlicense.com.
Q: What is the JLO?
A: The JLO, or Jukebox License Office, is a joint venture of the
United States performing rights organizations, BMI, ASCAP and SESAC.
Combined, these organizations represent essentially every copyrighted
song in the United States and much of the world. The JLO offers a
license known as the Jukebox License Agreement which provides total
access to all songs in the ASCAP, BMI and SESAC repertories. The
Jukebox License Agreement is a single, economical, annual license that
provides the authorizations require to publicly perform copyrighted
songs on your jukebox. Once you are licensed with the JLO, you will
receive a certificate that must be displayed in the title strip holder
of each jukebox you operate.
Q: Where do my license fees go?
A: The JLO distributes approximately 95% of all money collected
directly to BMI, ASCAP and SESAC, who, in turn, distribute royalties
to the songwriters and music publishers they each represent. The
remaining 5% of fees collected cover the JLO operating expenses.
***************************************************************************************
Let me know what else you need....
~~Cynthia
|
Clarification of Answer by
cynthia-ga
on
28 Feb 2005 05:33 PST
I just found this:
I'm thinking of starting a digital jukebox service. What kind of
licenses are required? Can I get the necessary license from
SoundExchange? If not, who did I need to contact to obtain the
necessary licenses?
http://www.soundexchange.com/licensing101.html#a11
..."Due to the fact that digital jukebox services are interactive in
nature (i.e., listeners may select which sound recordings they wish to
hear), these services do not qualify for the statutory license
available to noninteractive services. Instead, operators of such
services must obtain performance and reproduction licenses directly
from each individual copyright owner whose works are included in the
jukebox service. To operate a digital jukebox service, the following
direct licenses are required:
1) For each individual musical work (i.e., the written notes and
lyrics to the song) included in the service, the service must obtain a
mechanical license. Such licenses are available as a matter of law if
you follow the notice procedures established in Section 115 of the
Copyright Act. Alternatively, you may negotiate these licenses
directly with each relevant songwriter/publisher or you may negotiate
a license with the Harry Fox Agency, which coordinates licenses to
reproduce and distribute musical compositions on behalf of a large
number of publishers. It is possible that some of the older musical
compositions you plan to use are in the public domain (i.e., their
copyright has expired), but determining the public domain status of a
given musical work gets rather complicated. If you think the musical
work you wish to use is in the public domain, we recommend that you
review this issue either with a copyright attorney, the individual
music publishers or someone at the Harry Fox Agency.
2) For each individual sound recording you will be using, you must
also obtain a master use license from the individual record label that
owns such sound recording. The name of the relevant record company can
usually be determined from the liner notes that accompany the
commercially-released version of the music. To assist you in this
process, a list of licensing contacts at the major record companies is
included below. Each of the labels will set their own fees based on a
variety of factors (e.g., how popular the song is or was, how current
the song is, the type of CD project, the number of copies that will be
made, etc.) Because the labels receive numerous licensing requests, it
generally takes some time for these licenses to be granted. Please be
aware that labels are not required to license their recordings for use
in third-party projects. Because of differences in the copyright law
as it applies to musical compositions and sound recordings, it is
unlikely (though remotely possible) that any of the sound recordings
you will be using are in the public domain.
Additionally, the venue that hosts a physical digital jukebox is
required to obtain a public performance license from ASCAP, BMI and
SESAC that covers the right to publicly perform the musical works.
Only in the case of online digital jukeboxes are services required to
obtain a public performance license that applies to the sound
recordings. The record labels should provide these licenses along with
any master use licenses they choose to grant..."
~~C
|
