Agenda Package - 7-16-12 Reg. Meeting

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n� 3 G LEE COUNTY d O f30CJ (3 L)0Oe,'0 Committed Today for a Better Tomorrow LEE COUNTY BOARD OF COMMISSIONERS ITEM ABSTRACT ITEM NO. V. F. Information Meeting Date: July 16, 2012 XX Action Item Consent Agenda SUBJECT Licensing Agreement with American Society of Composers, Authors and Publishers (ASCAP) DEPARTMENT County Manager / County Attorney CONTACT PERSON John Crumpton / Dale Talbert REQUEST Consider entering into a licensing agreement with ASCAP allowing the County to play live or recorded versions of musical compositions copyrighted by ASCAP artists. SUMMARY Copyrighted musical compositions frequently are played at events and activities sponsored by the Parks and Recreation and Senior Citizens departments, e.g., aerobics, exercise, dance, gymnastics classes, etc., and as background music when callers to County offices are placed on hold or when no recorded programming is being broadcast over Lee County Government TV. The American Society of Composers, Authors and Publishers (ASCAP) has contacted the Administration and asserted such use of the music without a license violates the federal copyright laws and subjects the County to severe financial penalties. ASCAP's assertion arguably is correct. The current U.S. Copyright Act does not provide explicit language that would exempt uses of copyrighted music by local governments. Although the Copyright Act provides an exemption from liability for unlicensed public performance of copyrighted music by nonprofits under certain circumstances, this area of the law has not been developed sufficiently to conclude with any certainty that the County would fall under the exemption. Said differently, the County may be using music during events and activities that call for it to pay licensing fees. ASCAP has offered to waive all past violations if the county agrees to enter into a blanket licensing agreement which would cost the County $637 per year. (Atch 1) Other counties and municipalities have received similar notices of violations and many have entered into licensing agreements rather than expose themselves to potential litigation and large monetary fines. Their actions have been influenced, in part, by a memorandum issued by the North Carolina League of Municipalities which concludes "purchasing a license ... may be a wise choice' "as a type of 'insurance policy' to help protect [a government unit] from enforcement action." (Atch 2) Counsel for the Association of County Commissioners concurs with the League's position. BUDGET IMPACT $637.00 per year ATTACHMENT(S) (1) Licensing Agreement; (2) League of Municipalities Memo PUBLIC HEARING N/A PRIOR BOARD ACTION N/A RECOMMENDATION Enter into licensing agreement as presented