Surprise, AZ News blog

A neighborhood bar in Surprise could end up paying as much as $90,000 if allegations are proven in federal court that it hosted karaoke nights and live musical performances without paying licensing fees for the songs that entertained its customers. 

The lawsuit against Brookside Sports Bar & Grille, an independently owned restaurant at 15170 W. Bell Road, was filed in federal court by the American Society of Composers, Authors and Publishers.

Brookside is just the latest Arizona venue to be sued by the society for copyright infringement.

 

The lawsuit is a wake-up call for mom-and-pop businesses across the Valley, said Marianne Jennings, a professor of legal and ethical studies at Arizona State University’s W.P. Carey School of Business.

Media-sharing Web sites such as YouTube have mistakenly led some venue owners to think they can play music for their customers for free, Jennings said.

And in a digital age where music piracy and copyright infringement have become more prevalent, litigation is fast becoming the tool used to warn other potential offenders.

Brookside owner Marc Mongelluzzo said he was not aware of the lawsuit against his venue, but declined further comment.

Any establishment that plays recorded music for a group of people using CDs, cassette tapes, records or any other form, or that hosts karaoke or live music, must pay an annual fee to the society, said group spokesman Vincent Candilora.

The society protects songwriters and music publishers - those the public often has trouble distinguishing from the musical artist.

“For example, Celine Dion . . . most of her songs are written by a woman named Diane Warren,” Candilora said. “However, Diane Warren doesn’t have a record deal, can’t go on tour or sell CDs or hats. How she makes her living is by having her songs performed in public places like Brookside Sports Bar.”

In 2007, the non-profit society collected about $104 million in fees from venues across the country. All of it, save overhead, went to society members’ royalty checks, Candilora said.

The society’s annual fees are determined by a venue’s size and whether they routinely host live music or karaoke.

Candilora estimated that Brookside would have had to pay $1,835 to the society each year.

In the past three years, three Arizona bars have been hit with ASCAP lawsuits. The society has 60 employees tracking new music venues. Often, the employees monitor liquor and business licenses to find bars most likely playing music. The society contacts the venues to find out what their intentions are and to inform them of fees. In some cases, the society sends employees to the bars to record a night’s activities and songs that are publicly aired. Candilora says the society contacted Brookside more than a dozen times since October 2006 about paying up.

Dennis Karjala, a professor at ASU’s Sandra Day O’Connor College of Law, said the fees are a constant topic of debate among bar and restaurant owners who are angered by ASCAP’s demands.

“Most think they are entitled to play music,” Karjala said. “In theory, you can’t even turn on a boom box and walk down the street because that would be considered a public performance. I think ASCAP (the society) is just trying to educate people. They don’t bring a lawsuit against anyone until they have to.”

Brookside is cited in the lawsuit for three copyright violations. A judge could order the venue to pay anywhere from $750 to $30,000 per violation, Candilora said.

He added that ASCAP sued about 200 venues across the country in 2007.

The majority of the cases were settled out of court.