Updated on March 9 from its original print version.
Rep. Kevin Van De Wege’s music licensing bill has made it to Gov. Jay Inslee’s desk after more than a year of discussion and dissection.
His proposed House Bill 1763, “Regulating music licensing agencies,” requires new registration and filing standards for music licensing agents. It passed both in the House 72-25 on Feb. 10, and 48-0 on March 3 in the Senate. Now, the House and Senate will finalize the bill before tentatively sending it to the governor. If Inslee signs it, the bill goes into effect on Jan. 1, 2017.
Van De Wege’s proposed bill stems from complaints by Washington businesses, including Sequim venues, who felt they’ve been harassed by music licensing agencies while they investigate and collect on music copyright violations.
“Hopefully small businesses will soon see relief from the aggressive and intimidating behavior from music licensing agents,” Van De Wege said in a statement. “I’m happy we’re able to get some of these provisions through the Senate and look forward to reconciling our two approaches.”
The bill was revisited in the 2016 session after the original version was introduced and amended significantly last year.
Amendments were suggested by music licensing agencies representatives last year that Van De Wege said only left in tact a $1,500 licensing fee and a consumer awareness campaign.
However its newest incarnation reestablishes multiple standards for agencies like BMI, Broadcast Music Incorporated, and ASCAP, American Society of Composers, Authors and Publishers.
If the bill is approved, music licensing companies must file annually at no cost with the Department of Licensing and receive a valid Washington Unified Business Identifier, UBI.
They also must provide a list of the most recent members and affiliates. These music agencies also must give 72 hour notice before entering into or offering a contract for payment of royalties that provides the rates and terms and the opportunity to view the list of artists and copyrighted works.
There are 520,000 licensed composers with millions of works under copyright in the U.S., state officials report.
Van De Wege’s bill mandates music agents must avoid obscene language and be fair in their investigation. If an agent is found in violation of any of the above items, the music licensing company faces a $1,000 penalty per charge, which goes to a consumer awareness campaign through the Department of Revenue and the State Attorney General’s offices.
However, some possible firsts were eliminated in the bill while in review in the Senate.
Music licensing agencies won’t pay a fee to register annually nor will they need to provide 24 hour notice before entering a venue, like a bar, church or fitness center for review.
State officials report that 25 states currently regulate licensing music agencies and none require companies to announce their presence in a public area.
Also gone, Van De Wege said is an awareness campaign for businesses about copyrighted music and how to prevent infringement. He said the legislature didn’t appropriate funds for it and fines will likely only pay for a portion of prosecution by the attorney general against future violations.
Van De Wege said he would have preferred the 24-hour notice remain in the bill too but he wanted something at least in place for small businesses.
“It’s legislation that protects small businesses that often get overlooked,” he said.
Local opinion
One Sequim businessman, Dale Dunning, owner of the Oasis Bar & Grill, said he’s felt the burn from music licenses leading him to be an advocate for Van De Wege’s bill.
In 2014, he received a bill from BMI for $8,700 following an investigation that musicians were playing copyrighted music in Dunning’s business without registering with them. In response, he stopped bringing in bands because he felt the investigation and fine blindsided him.
However, he recently took out the Oasis’ stage, which once was one of the most active music venues in Sequim.
“We’re completely done with music,” he said. “We’re fixing our place up and focusing on dining. The music thing wasn’t viable.”
Previously, Dunning said music nights were mostly break-even.
Several Sequim venues or groups continue to pay music licensing fees such as 7 Cedars Casino, the City of Sequim and the Sequim Lavender Farmers Association while a few have stopped music entirely due to pressures from licensing companies.
But Van De Wege previously said the bill isn’t about enforcing licensing but creating better conduct for the agencies.
Previously, ASCAP officials said that licensing managers work from home or from automobile seeking out venues online. If they believe a venue is in violation of not paying royalties, such as through an open mic event, then they’ll send over the fine for their alleged violation.
Dunning said the process for evaluating venues for copyright music is unfair and could be fabricated as to how much they must pay.
He said the House Bill forces the licensing managers to “get out and set (interviews) up.”
Overall, Van De Wege said he feels good about the bill and believes it will be revisited as awareness grows.
For more information on House Bill 1763, visit http://app.leg.wa.gov/billinfo/ and search “1763.”