TheBigDifference

ASCAP__________________________________________________________________________________________________ The Big Difference
performance rights are a writer's and publisher's
most important source of continuing royalty income

A POINT BY POINT COMPARISON OF ASCAP AND BMI*

ASCAP BMI

FULL NAME
American Society of Composers, Authors and Publishers Broadcast Music, Incorporated

WHAT IT IS
A membership association comprised of songwriters, composers, lyricists and music publishers. A corporation with which writers and publishers are affiliated.

WHAT IT
DOES Under U.S. Copyright Law, those who publicly want to perform copyrighted music (radio, TV, cable, bars, clubs, restaurants, shopping malls, concert halls, airlines, orchestras, websites, theme parks, etc.) must have the permission of the copyright owner. ASCAP licenses these users of music, collects the fees and pays its writer and publisher members their performance royalties. Under U.S. Copyright Law, those who publicly want to perform copyrighted music (radio, TV, cable, bars, clubs, restaurants, shopping malls, concert halls, airlines, orchestras, etc.) must have the permission of the copyright owner. BMI licenses these users of music, collects the fees and pays its writer and publisher affiliates their performance royalties.

OWNERS Writer and publisher members Radio and television broadcasters. (The very organizations ASCAP and BMI license!)

TOTAL 2000
REVENUE Over $575 million - the greatest revenue of any performing rights society in the world. ASCAP's operating expenses are also among the lowest in the world. Does not disclose its financial data to writers or publishers. Financial reports sent only to broadcaster stockholders.

YEAR FOUNDED 1914 by writers and music publishers. 1939 by the broadcasting industry.

LICENSE FEES
DETERMINED BY Negotiation with music users. If any licensee and ASCAP cannot come to an agreement, a federal court is available to determine a reasonable fee for that customer's ASCAP license. Negotiation with music users. Recent 1993 Consent Decree change allows court determination of reasonable license fees and interim license fees if negotiated agreement cannot be reached.

BOARD OF
DIRECTORS 12 writers and 12 publishers, elected every two years by the writer and publisher membership. Current President and Chairman of the Board is Academy and Grammy Award winning lyricist Marilyn Bergman. Past presidents include Pulitzer Prize-winning composer Morton Gould and Academy and Grammy Award winning lyricist Hal David. Broadcast industry executives chosen by broadcaster stockholders plus one BMI employee

WRITER AND
PUBLISHER
CONTRACTS Writers and publishers sign identical contracts and may resign at the end of any year of the contract on three months advance written notice The standard writer contract is for two years and the standard publisher contract is for five years. Some writers and publishers negotiate shorter-term or co-terminous deals.
The two- and five-year contracts continue to renew for additional two- and five-year periods if the termination date is missed. Termination notice must be by registered or certified mail within a specific window (for example, no sooner than six months and no later than 60 or 90 days prior to the end of the contract).

WHO CAN JOIN Songwriters, composers, lyricists and music publishers, since 1914. Open only to music publishers from 1939 to 1950; writers able to affiliate commencing 1950.

WRITER AND
PUBLISHER
ROYALTY
PAYMENTS Four domestic and four incoming foreign distributions per year. Moneys from all U.S. licensed areas are distributed to writers and publishers every three months.
50% to writers and 50% to publishers.
Clearly defined, objective and fair payment system.
Guided by a "follow the dollar" principle in the design of its payment system. In other words, the money collected from a particular medium (TV, radio, etc.) is distributed on the basis of performances in that medium.
Performances can be feature performances (visual vocal on TV, a song played on the radio, etc.), underscore (background music on a movie of the week or a weekly series), a theme song to a series, an advertising jingle, a promo or a logo. In radio, almost all performances are feature performances.
On television, payments are based on when a performance occurs (afternoon, evening, etc.), where a performance occurs (network, cable, local television, etc.), and how a composition is used
(feature, underscore, theme song, jingle, etc.)
Based on all of these factors, a performance will generate a certain number of credits which in turn are multiplied by a dollar value to arrive at a writer or publisher payment.
Four domestic and four incoming foreign distributions per year to writers and publishers. Most U.S. moneys distributed quarterly.
50% to writers and 50% to publishers.
Payment schedule lists minimum amounts due for some types of performances.
Most writers' and publishers' royalties are in the form of one-time "voluntary" payments over and above the minimum payment-schedule rates. These "voluntary" payments may vary significantly from distribution to distribution and may also vary significantly between different types of performances. The size of each voluntary payment is determined each quarter by BMI management. These voluntary payments have ranged from 0% to more than 300% above the payment rate.
May move moneys around (e.g., radio royalties distributed on the basis of television performances and vice versa).

AREAS
LICENSED
AND SURVEYED
FOR PAYMENT
TO MEMBERS Local commercial radio and television, the major television networks, non-commercial radio (including National Public Radio and college stations), non-commercial television, cable services, background and foreground music services, airlines, colleges and universities, "serious" music concerts, pop concerts, new media, Internet, certain ice shows and circuses; non-surveyed license fees distributed on the basis of feature performances on radio and all uses on television (background music, theme songs; etc.).
ASCAP uses a three-pronged approach to surveys for highest levels of performance data accuracy. Surveys use a combination of the most advanced digital tracking technologies, data provided by licensees, and an in-house staff of music experts.
In radio, ASCAP conducts separate surveys of country, Latin, jazz, urban contemporary, religious, classical, ethnic, and pop music stations so that the total moneys collected from those genre-specific stations are paid to the writers of works with performances on those stations.
Specific distribution formulas applicable to all surveyed areas and for all types of performances.
License same general areas as ASCAP
No specific payment formula is set forth in the BMI payment schedule for any licensed area other than network television, local TV and radio

LIVE
PERFORMANCE
ROYALTIES Royalties are paid for all performances by headliners and opening acts in the 200 top-grossing U.S. concert tours, as well as selected other major live performance venues. Live performance payments commenced in 1993. Commenced paying on live concert performances in 1996.

COLLEGE
RADIO Has surveyed and paid on college radio performances since 1979. Has surveyed and paid on college radio performances since 1989.

INTERNET The first American performing rights organization paying its composer, writer and publisher members for music performances on the Internet beginning in June 1997.
ASCAP's EZ-Eagle™ Internet licensing tool identifies highest value music sites, captures song title information, identifies user and automatically sends licensing materials. EZ-Eagle™ can also decode watermarking technologies and provides a technical partnership with Cyveillance, the leader in intellectual property monitoring for the Internet.
Some payments to affiliates made in 1998 for performances on the Internet.
BMI MusicBot™ Version 2.0 links song titles found on the Web with the names of the works' songwriters and music publishers.

SPECIAL
DISTRIBUTIONS Where substantial moneys are received in a current year for prior periods, ASCAP has included those moneys in special distributions. These are designed to direct the royalties received to those members who had performances in the years in question. Members of foreign societies participate in these distributions. Special distributions have been made from moneys received from the ABC, CBS and NBC television networks, local TV stations, MTV and HBO, among others. Specific explanations are forwarded to all members as to how their shares of the overall distribution were determined. When retroactive moneys have been received by BMI, they generally have not been paid out in the form of special distributions to writers and publishers who had performances during the periods for which the moneys were due. Where special distributions have been made, little information has been provided as to how each writer's and publisher's royalties were determined.

FOREIGN
PERFORMANCES Through agreements with foreign societies in the major countries of the world, ASCAP receives royalties for the performances of works written by ASCAP members which are performed in foreign countries. In 1999, ASCAP collected for its members $134 million in foreign performance income. ASCAP also collects for foreign society writers and publishers for performances of their works in the U.S. and forwards those moneys to foreign societies for distribution to their members. (See: The ASCAP International Advantage) Has agreements with foreign societies for the payment to BMI of royalties due affiliates for their performances in foreign countries. Does not publish foreign financial data. Forwards U.S. money to foreign societies for distribution for U.S. performances.

RELATIONS WITH
FOREIGN
SOCIETIES Agreements with practically all foreign societies provide that ASCAP licenses their repertories except for works specifically excluded. In most countries of the world, works go into BMI repertory only on specific request

WRITER AND
PUBLISHER
INVOLVEMENT Writers and publishers elect the Society's Board of Directors and a Board of Review. Writers and publishers sit on advisory committees which meet periodically in New York, Los Angeles, Nashville and Miami. Open membership meetings in New York, Los Angeles and Nashville. Writers and publishers have no say in the running of BMI.

TREATMENT
OF WRITERS
AND
PUBLISHERS All ASCAP writer and publisher members are treated alike, from the newest member to the most established member. Members are paid based on performances, not who they are. All similar performances are similarly credited. Members who have a complaint about the Society's distributions to them or the application of the Society's rules may seek relief from the Board of Review. (See: The ASCAP Advantage.) No obligation to treat all writer or publisher affiliates alike. Affiliates aggrieved by rules may seek arbitration, with loser liable for both parties' legal fees.

THE ASCAP ADVANTAGE: CAREER DEVELOPMENT

SHOWCASES & WORKSHOPS Extensive series of new band and writer showcases, educational seminars and workshops as well as many other career development opportunities throughout the U.S. and foreign counties.

MEMBER BENEFITS
All members receive a personalized ASCAP Member Card and are entitled to an exclusive package of valuable benefits, services and discounts including access to insurance coverage for health, dental, term life, musical instrument ar equipment, and studio and tour liability. Other benefits include discounts on CD manufacturing, promotional and tour merchandise, a member investment program, discounts on accessories from Guitar Center, airline and travel discounts and much more. Members also have access to a credit union offering a full range of financial services.

WHERE IS ASCAP?
Offices / Website

* THIS DOCUMENT IS NOT AN OFFICIAL ASCAP DIGITAL PUBLICATION.

FULL NAME	American Society of Composers, Authors and Publishers	Broadcast Music, Incorporated
WHAT IT IS	A membership association comprised of songwriters, composers, lyricists and music publishers.	A corporation with which writers and publishers are affiliated.
WHAT IT DOES	Under U.S. Copyright Law, those who publicly want to perform copyrighted music (radio, TV, cable, bars, clubs, restaurants, shopping malls, concert halls, airlines, orchestras, websites, theme parks, etc.) must have the permission of the copyright owner. ASCAP licenses these users of music, collects the fees and pays its writer and publisher members their performance royalties.	Under U.S. Copyright Law, those who publicly want to perform copyrighted music (radio, TV, cable, bars, clubs, restaurants, shopping malls, concert halls, airlines, orchestras, etc.) must have the permission of the copyright owner. BMI licenses these users of music, collects the fees and pays its writer and publisher affiliates their performance royalties.
OWNERS	Writer and publisher members	Radio and television broadcasters. (The very organizations ASCAP and BMI license!)
TOTAL 2000 REVENUE	Over $575 million - the greatest revenue of any performing rights society in the world. ASCAP's operating expenses are also among the lowest in the world.	Does not disclose its financial data to writers or publishers. Financial reports sent only to broadcaster stockholders.
YEAR FOUNDED	1914 by writers and music publishers.	1939 by the broadcasting industry.
LICENSE FEES DETERMINED BY	Negotiation with music users. If any licensee and ASCAP cannot come to an agreement, a federal court is available to determine a reasonable fee for that customer's ASCAP license.	Negotiation with music users. Recent 1993 Consent Decree change allows court determination of reasonable license fees and interim license fees if negotiated agreement cannot be reached.
BOARD OF DIRECTORS	12 writers and 12 publishers, elected every two years by the writer and publisher membership. Current President and Chairman of the Board is Academy and Grammy Award winning lyricist Marilyn Bergman. Past presidents include Pulitzer Prize-winning composer Morton Gould and Academy and Grammy Award winning lyricist Hal David.	Broadcast industry executives chosen by broadcaster stockholders plus one BMI employee
WRITER AND PUBLISHER CONTRACTS	Writers and publishers sign identical contracts and may resign at the end of any year of the contract on three months advance written notice	The standard writer contract is for two years and the standard publisher contract is for five years. Some writers and publishers negotiate shorter-term or co-terminous deals. The two- and five-year contracts continue to renew for additional two- and five-year periods if the termination date is missed. Termination notice must be by registered or certified mail within a specific window (for example, no sooner than six months and no later than 60 or 90 days prior to the end of the contract).
WHO CAN JOIN	Songwriters, composers, lyricists and music publishers, since 1914.	Open only to music publishers from 1939 to 1950; writers able to affiliate commencing 1950.
WRITER AND PUBLISHER ROYALTY PAYMENTS	Four domestic and four incoming foreign distributions per year. Moneys from all U.S. licensed areas are distributed to writers and publishers every three months. 50% to writers and 50% to publishers. Clearly defined, objective and fair payment system. Guided by a "follow the dollar" principle in the design of its payment system. In other words, the money collected from a particular medium (TV, radio, etc.) is distributed on the basis of performances in that medium. Performances can be feature performances (visual vocal on TV, a song played on the radio, etc.), underscore (background music on a movie of the week or a weekly series), a theme song to a series, an advertising jingle, a promo or a logo. In radio, almost all performances are feature performances. On television, payments are based on when a performance occurs (afternoon, evening, etc.), where a performance occurs (network, cable, local television, etc.), and how a composition is used (feature, underscore, theme song, jingle, etc.) Based on all of these factors, a performance will generate a certain number of credits which in turn are multiplied by a dollar value to arrive at a writer or publisher payment.	Four domestic and four incoming foreign distributions per year to writers and publishers. Most U.S. moneys distributed quarterly. 50% to writers and 50% to publishers. Payment schedule lists minimum amounts due for some types of performances. Most writers' and publishers' royalties are in the form of one-time "voluntary" payments over and above the minimum payment-schedule rates. These "voluntary" payments may vary significantly from distribution to distribution and may also vary significantly between different types of performances. The size of each voluntary payment is determined each quarter by BMI management. These voluntary payments have ranged from 0% to more than 300% above the payment rate. May move moneys around (e.g., radio royalties distributed on the basis of television performances and vice versa).
AREAS LICENSED AND SURVEYED FOR PAYMENT TO MEMBERS	Local commercial radio and television, the major television networks, non-commercial radio (including National Public Radio and college stations), non-commercial television, cable services, background and foreground music services, airlines, colleges and universities, "serious" music concerts, pop concerts, new media, Internet, certain ice shows and circuses; non-surveyed license fees distributed on the basis of feature performances on radio and all uses on television (background music, theme songs; etc.). ASCAP uses a three-pronged approach to surveys for highest levels of performance data accuracy. Surveys use a combination of the most advanced digital tracking technologies, data provided by licensees, and an in-house staff of music experts. In radio, ASCAP conducts separate surveys of country, Latin, jazz, urban contemporary, religious, classical, ethnic, and pop music stations so that the total moneys collected from those genre-specific stations are paid to the writers of works with performances on those stations. Specific distribution formulas applicable to all surveyed areas and for all types of performances.	License same general areas as ASCAP No specific payment formula is set forth in the BMI payment schedule for any licensed area other than network television, local TV and radio
LIVE PERFORMANCE ROYALTIES	Royalties are paid for all performances by headliners and opening acts in the 200 top-grossing U.S. concert tours, as well as selected other major live performance venues. Live performance payments commenced in 1993.	Commenced paying on live concert performances in 1996.
COLLEGE RADIO	Has surveyed and paid on college radio performances since 1979.	Has surveyed and paid on college radio performances since 1989.
INTERNET	The first American performing rights organization paying its composer, writer and publisher members for music performances on the Internet beginning in June 1997. ASCAP's EZ-Eagle™ Internet licensing tool identifies highest value music sites, captures song title information, identifies user and automatically sends licensing materials. EZ-Eagle™ can also decode watermarking technologies and provides a technical partnership with Cyveillance, the leader in intellectual property monitoring for the Internet.	Some payments to affiliates made in 1998 for performances on the Internet. BMI MusicBot™ Version 2.0 links song titles found on the Web with the names of the works' songwriters and music publishers.
SPECIAL DISTRIBUTIONS	Where substantial moneys are received in a current year for prior periods, ASCAP has included those moneys in special distributions. These are designed to direct the royalties received to those members who had performances in the years in question. Members of foreign societies participate in these distributions. Special distributions have been made from moneys received from the ABC, CBS and NBC television networks, local TV stations, MTV and HBO, among others. Specific explanations are forwarded to all members as to how their shares of the overall distribution were determined.	When retroactive moneys have been received by BMI, they generally have not been paid out in the form of special distributions to writers and publishers who had performances during the periods for which the moneys were due. Where special distributions have been made, little information has been provided as to how each writer's and publisher's royalties were determined.
FOREIGN PERFORMANCES	Through agreements with foreign societies in the major countries of the world, ASCAP receives royalties for the performances of works written by ASCAP members which are performed in foreign countries. In 1999, ASCAP collected for its members $134 million in foreign performance income. ASCAP also collects for foreign society writers and publishers for performances of their works in the U.S. and forwards those moneys to foreign societies for distribution to their members. (See: The ASCAP International Advantage)	Has agreements with foreign societies for the payment to BMI of royalties due affiliates for their performances in foreign countries. Does not publish foreign financial data. Forwards U.S. money to foreign societies for distribution for U.S. performances.
RELATIONS WITH FOREIGN SOCIETIES	Agreements with practically all foreign societies provide that ASCAP licenses their repertories except for works specifically excluded.	In most countries of the world, works go into BMI repertory only on specific request
WRITER AND PUBLISHER INVOLVEMENT	Writers and publishers elect the Society's Board of Directors and a Board of Review. Writers and publishers sit on advisory committees which meet periodically in New York, Los Angeles, Nashville and Miami. Open membership meetings in New York, Los Angeles and Nashville.	Writers and publishers have no say in the running of BMI.
TREATMENT OF WRITERS AND PUBLISHERS	All ASCAP writer and publisher members are treated alike, from the newest member to the most established member. Members are paid based on performances, not who they are. All similar performances are similarly credited. Members who have a complaint about the Society's distributions to them or the application of the Society's rules may seek relief from the Board of Review. (See: The ASCAP Advantage.)	No obligation to treat all writer or publisher affiliates alike. Affiliates aggrieved by rules may seek arbitration, with loser liable for both parties' legal fees.

SHOWCASES & WORKSHOPS	Extensive series of new band and writer showcases, educational seminars and workshops as well as many other career development opportunities throughout the U.S. and foreign counties.
MEMBER BENEFITS	All members receive a personalized ASCAP Member Card and are entitled to an exclusive package of valuable benefits, services and discounts including access to insurance coverage for health, dental, term life, musical instrument ar equipment, and studio and tour liability. Other benefits include discounts on CD manufacturing, promotional and tour merchandise, a member investment program, discounts on accessories from Guitar Center, airline and travel discounts and much more. Members also have access to a credit union offering a full range of financial services.
WHERE IS ASCAP?	Offices / Website