BMI in SL - "Pay the Piper or Face the Music?" by Justine Babii of SLNN

Via Second Life News Network

Pay the piper or face the music?
by Justine Babii
November 07, 2007

SUNSET BEACH - If you own a venue or club in real life that hosts DJs or bands, then you are probably familiar with Broadcast Music, Inc. or BMI. BMI is an organization that has arranged to handle licensing fees for over 350,000 creators of music, the songwriters, composers and publishers of more than 6.5 million musical works.

If you own a club or similar venue in real life then, you pay fees to BMI. Those fees gives your DJs the right to play the copyrighted music and bands to play cover songs for those compositions that BMI represents.

If you own a club or other venue in Second Life, you might not be familiar with BMI yet, but there’s an excellent chance you will be in the near future.

Currently, DJs in Second Life are not required to pay performance rights organizations such as ASCAP, BMI, or SESAC, but that may change in the near future. The current legal climate for Second Life DJs is that they are providing a service and are being paid for that service; thus, are exempt from having to pay for licensing.

Similarly, no one has pursued Second Life club owners for licensing fees to date. The idea that there is no actual venue, or alcohol sales, or significant revenue from advertising probably makes the individual club owners not worth the effort to pursue. There is, however, much going on in the world of digital music licensing that creates a considerable gray area.

And it is this gray area that will make for an interesting year in the Second Life music business. Currently, internet radio stations are embroiled in a contentious dispute with various entities over the costs of broadcasting copyrighted music over the internet. The outcome of this battle could well determine the next steps that BMI and similar organizations take with regard to music performed in Second Life.

In May of this year, the United States Royalty Copyright Board approved an increase in rates internet radio stations would have to pay in order to broadcast songs. Viewing the new rate structure as crippling and potentially in conflict with other pieces of legislation, such as 1998’s Digital Millennium Copyright Act, the internet radio industry immediately challenged the decision in court and a protracted battle has ensued.

In addition to the challenge, a bill called the Internet Radio Equality Bill was proposed in the House of Representatives seeking to ameliorate the rate increases suggested by the Royalty Copyright Board. How this battle plays out may have some effect in Second Life.

In what is purportedly an unrelated development, music licensing giant BMI arrived in Second Life during the summer of 2007 as part of an arrangement with Funky House Club owners Charming Babii and Danni Dollinger.

Dollinger said in a published interview with DJ Doubledown Tandino, “We are sponsored by BMI London. Our plans are to promote new talent and Artists in Dance Music.”

“BMI wants to promote artists from the dance scene ...and they want to do it with [Funky House Club]. They want to sign [and] discover artists (artists including writers, DJ´s, & producers) in SL and RL and promote them in SL and of course in RL. We are making our island into a dance scene,” he also said.

Dollinger then added that “We are planning to hold monthly events where Dance Music Artists can play their tunes to a live audience. At the moment BMI and Gibson Guitars co-sponsor the Wavelength event at The Blarney Stone here in SL which is a live simulcast from Hammersmith London (the Regal Rooms). The Hammersmith monthly event is for Piano acoustic artists.”

The plan didn't work, as the Funky House Club was closed not long after the interview was published on Tandino's blog. Charming Babii, according to his profile, is now associated with a new club, the Sands House and Jazz Club.

SLNN contacted Ham Rambler to speak to him about his working relationship with BMI, but he was travelling. BMI still sponsors the Wavelength events. His business associate Sitearm Madonna had this to say:

"Ham Rambler totally supports live music and musicians and audiences and venues in SL. He is passionate about music in RL and great music ANYwhere.. he is the perfect matchmaker :)"

Futhermore, the clubs on Dublin, The Blarney Stone and Fibber Magees, host DJs every day

There is no evidence of an association between BMI and the Sands House and Jazz Club, and neither Babii nor Dollinger are among the fifteen or so members of the Broadcast Music Inc. (BMI) group in Second Life. Neither would respond to requests for interviews for this article.

The Broadcast Music Inc. (BMI) group was founded by Raj Roviana, who in his profile explains that he works for BMI in London. His profile encourages the music community to join the group, as it says ” If you are a songwriter, composer. or music publisher then please join our group: Broadcast Music Inc. (BMI)." Mr. Roviana did not respond to requests for an interview.

Though there is clearly the potential for exciting opportunities with this relationship, this synergy between an established force in the music industry and Second Life clubs creates some fear and anxiety for many club owners and DJs alike.

The primary fear is that bringing the groups that license music into some clubs and not others will create a network of “licensed” clubs and freeze out clubs that are not licensed by threatening them with performance fees.

Occasional RL musician and Second Life businessman Hammer Flanagan said, “Many of us believe [BMI is] in world to evaluate, to scope it out if you will. As there are no laws to my knowledge regarding streaming music in Second Life, some of us believe they are in here to simply find out what’s going on so perhaps in the future they can try to build a formal streaming music law, to their advantage."

"I feel that Funky House had no idea what they were doing. Their club might benefit in the short term from publicity and whatever perks BMI is offering, but in the long term, unless someone points out to BMI that club ownership here is often a hand-to-mouth operation that couldn’t afford licensing, they may have started the end of all this wonderful variety of streaming music we hear here and see it replaced with the bland corporate suit rock that predominates in American terrestrial radio.”

An Interview with Charming Babii & Danni Dollinger, Owners of Funky House Club, & Now Sponsored by BMI

As I reported a day earlier HERE there was upset when the Funky House Club announced it would be taking on BMI as a sponsor. I promosed an interview for both Funky House Club owners as well as for all of the DJs, artists, club owners, and partygoers that may have been concerned about BMI's long-term SL plans.

I was joined by Charming Babii & Danni Dollinger, the owners of the Funky House Club (FHC) in Second Life. Recently they had advised the DJ/Music/Club scene that BMI has joined their endeavors as a sponsor.

Generally, most musicians and DJs have varying conceptions & misconceptions about BMI (more about BMI here). When the Funky House Club sent their news, it was met with congratulations, but also confusion, suspicion, and anger. Charming, Danni, and I were anxious to sit down and discuss more specifically FHC’s new projects, what BMI as a sponsor means,& what will BMIs presence in SL mean to other club owners and artists, performers, and djs.

--This text transcript has been edited for spelling, grammar, and extraneous content---
("You" = Doubledown Tandino)

[14:29] You: firstly I’d like to thank you for doing this. I think it's the best method for people to understand what you're all about to do... instead of them leaving them assuming the worst. Tell me about yourselves regarding real life. Before you found SL, what kinds of things musically were you each doing?

[14:31] Charming Babii: I have been a DJ for 12 years in clubs in Denmark. I’m not playing live in RL at the moment..only SL. Im also working on my own production :) House and dance music that is :)

[14:34] Danni Dollinger: I’m a music lover. I have met may famous people in RL. muso's. Mostly Australian artists.

[14:35] You: Was there any RL music or event related work you have done? What is your skills background?

[14:38] Danni Dollinger: i have a bachelors Degree in Economics and work as a management consultant in RL

[14:38] You: When did you both enter SL?

[14:38] Charming Babii: 2/22/2007

[14:39] Danni Dollinger: haha i cant remember the exact date the 25th of Feb I think.

[14:40] You: Charming, when you entered SL, were your first thoughts along the lines of getting involved with the music DJ scene? What was your first big project?

[14:41] Charming Babii: No..not all..I didn´t know anything about DJing in SL...I was happy when I found out. Went to (Club) Fallout.. and realized the DJing was possible in SL.

[14:41] You: how about you Danni; Your first big SL undertaking?

[14:42] Danni Dollinger: Learning how Sl worked and what it all meant.

[14:43] You: I mean, right after that, what was sort of the first project you got involved with?

[14:44] Danni Dollinger: I guess that would be getting involved with Hed Kandi

[14:45] You: The RL label.... not just some dude in SL that happened to be named "Hed Kandi"?

[14:45] Danni Dollinger: haha very funny. No, the RL label.

[14:45] You: What paths did you each take to arrive to the creation of the Funky House Club? When was the club's opening date?

[14:46] Danni Dollinger: Charm and I met at Fallout where he was spinning.

[14:46] Danni Dollinger: I loved the tunes he played and we became friends instantly.

[14:46] Charming Babii: we opened the club the July 20th, 2007

[14:46] You: Yeah I was at the opening, place was hopping! And since then you've grown to the beach and the yacht. What were the original ideals and goals when the concept of FHC formed?

[14:48] Danni Dollinger: Charm and I both loved House Music and the format of Fallout was changing towards another direction musically.

[14:49] You: so pretty much, you had the means and saw that FHC could give more freedom towards what you wanted to do with a SL club?

[14:49] Charming Babii: We could choose the music and play what we like :)

[14:50] You: Was gaining sponsorship an idea that you toyed with?

[14:51] Charming Babii: No not at all, the opportunity presented itself.

[14:52] You: Tell me a little about that, who approached who, and what were some of the basic ideas talked about?

[14:54] Danni Dollinger: We were approached by a BMI representative and we discussed the idea we had for the club.

[14:54] You: At this point, BMI is officially a sponsor, correct? Now, what does that mean exactly? What are some of the plans that BMI has for FHC, or vice versa? What does the sponsorship actually entail?

[14:55] Danni Dollinger: We are sponsored by BMI London. Our plans are to promote new talent and Artists in Dance Music. As well as have a hot of a time doing it :D

[14:56] You: Is it an exchange of money for signs and promo? Or is it about future BMI headliner events? What kind of options are the possibilities BMI wants to do? Will Funky House Club will have more to pay performers? Will BMI reps also be hanging at FHC looking for potential prospects?

[14:57] Danni Dollinger: Double let us resond to one question at a time. BMI already promotes events here in SL.

[15:00] Charming Babii: BMI wants to promote artists from the dance scene ...and they want to do it with FHC. They want to sign / discover artists (artists including writers, DJ´s, & producers) in SL and RL and promote them in SL and of course in RL. We are making our island into a dance scene.

[15:02] Danni Dollinger: We are planning to hold monthly events where Dance Music Artists can play their tunes to a live audience. At the moment BMI co-sponsors the Wavelength event at The Blarney Stone here in Sl which is a live simulcast from Hammersmith London (the Regal Rooms). The Hammersmith monthly event is for Piano acoustic artists.

[15:04] Charming Babii: So if there are DJs, producers, & artists in the dance scene in SL...they really have the opportunity at FHC.

[15:05] You: What key points about FHC was it that made BMI select FHC? Can you think of anything specific that got BMI to notice FHC? Why FHC, what were some things that made it more exceptional than other clubs?

[15:06] Danni Dollinger: The collaboration with FHC is to promote Dance music from SL into RL. Part of the reason i think they chose FHC is because of our vision to the future. That being.... Funky DJ Agency and Funky Music Productions

[15:10] You: Moving on to more BMI related. You two are not BMI reps, so i wouldn’t expect you should know all these answers. BMI, what are they about.. in essence?

[15:11] Danni Dollinger: Performing Rights Representation for Creators of all Music.

[15:12] You: in simple terms: They make sure artists receive the money owed from their music being played live, correct? or does live not have anything to do with it? .... (example, a commercial wants to use a song, they'd go to BMI for that license?)

[15:13] Danni Dollinger: No they would need to get permission for the Music Publisher

[15:14] You: ok, so BMI mainly relates to music played at a public event, correct?

[15:14] Danni Dollinger: Partially but also radio, tv, cable, and the net.

[15:15] You: Net streaming (what performers do into clubs in SL) .. Would that fall under BMI's jurisdiction, or RIAA?

[15:15] Danni Dollinger: Not at this time (it does not fall under BMI’s jurisdiction.

[15:16] You: But perhaps, someday? BMI could be in SL to create new laws and licenses?

[15:17] Danni Dollinger: BMi doesn’t create laws. It is governed by a consent decree which is legislative.

[15:18] You: Does funky house club now have a BMI licence?

[15:18] Danni Dollinger: No. It is a promotional activity to promote dance music in SL.

[15:18] You: Is BMI supplying FHC's DJs with free music to promote?

[15:19] Charming Babii: No not at all... i wish lol

[15:19] Danni Dollinger: lol

[15:20] You: so specifically, how does BMI "help promote a performer or artists" ?

[15:21] Charming Babii: Showcases, co writing sessions, meet n greats, and general promoting activities.

[15:22] Danni Dollinger: And introductions to people in the Music Business.

[15:22] You: And we should expect to see some BMI reps hanging at the club sometimes?

[15:22] Charming Babii: yes :)) that’s the point :))

[15:22] Danni Dollinger: Yes of Course

[15:23] You: Do you feel it's hypocritical to join with BMI, knowing that you are playing music unlicensed for FHC?

[15:24] Charming Babii: No not at all

[15:24] Danni Dollinger: BMI is here in a promotional capacity only.

[15:24] Charming Babii: …on the dance scene

[15:25] You: Many are saying "Yeah, they say they're here in a promotional capacity, but there's no way they're not going to start snooping around." If BMIs company IS keeping licenses and selling them in RL, why would they overlook the countless live performers and clubs in SL that are potentially doing something unlicensed that BMI could collect money from?

[15:28] Danni Dollinger: That’s between Linden Lab and all of the agencies that are trying to get their piece of SL.

[15:28] You: Here's a worst case scenario: BMI is invited in by FHC..... BMI then comes up with some "virtual world performance" license and demands SL clubs or performers now need licenses.... then BMI goes to all the popular clubs and logs who is breeching licenses.... and then they contact Linden Lab to request RL personal info.....

[15:28] Danni Dollinger: BMI is here to promote new talent.

[15:28] Charming Babii: BMI is here now for the Dance scene.

[15:29] Danni Dollinger: That type of thing is legislative and not BMIs domain.

[15:30] You: before you both connected with BMI, what were your opinions about BMI?

[15:30] Charming Babii: I thought BMI was a record company lol.

[15:32] You: It's a huge step and FHC will gain much success.. What are your thoughts about the feelings of the SL DJ/Club community? Do you feel this will only help or hurt?

[15:33] Danni Dollinger: FHC feels that this is a really good thing for Artists and Djs in SL. They will be given more opportunities to be promoted in RL which may not have come along if they weren’t in SL

[15:34] Charming Babii: Yes..You never know..maybe I’ll get my tunes out ;)

[15:34] You: If other club owners or club goers still think negatively about BMI doing this, and FHC doing this, do you have anything to say to them to convince them that BMI is honestly here to promote artists and djs only?

[15:36] Danni Dollinger: I would say come along to our first live event and be heard!

[15:36] You: It seems people may be naive about what BMI is all about, where can they go to get more BMI info?

[15:37] Charming Babii: http://www.bmi.com/

[15:37] You: thank you for doing this

[15:37] Charming Babii: yw Double :))

[15:37] Danni Dollinger: thanks :)

BMI to Sponsor Funky House Club - Some Congratulate, While Others are Very Upset

BMI is a performing right organization: It collects license fees on behalf of its songwriters, composers and music publishers and distributes them as royalties to those members whose works have been performed. Generally in the USA, BMI requires licences from live music venues, and sometimes the performer. In real life, If a venue has musicians performing music on BMI's roster, DJs playing music, or even an Ipod for background music, then the venue is required to buy a contract from BMI. (ASCAP is also another company that requires a public music performance licences)

DJ Charming Babii is one of SL's top DJs. He is co-owner of Funky House Club and frequent performer. The Funky House Club has scored an amazing opportunity:
From Funky House Club (Charming Babii via notecard):
"BMI is the largest performing rights organisation in the world. A quick scan of BMI’s legendary roster turns up such names as John Lennon, Elvis Presley, Chuck Berry, Dave Brubeck, Willie Nelson, The Eagles, Thelonious Monk, Carlos Santana, The Beach Boys, The Neville Brothers, The Who, Aretha Franklin, Waylon Jennings, Charles Ives, John Kander & Fred Ebb, Leadbelly, John Williams, The Bee Gees, B.B. King, Antonio Carlos Jobim, and – via its affiliation with the British performing rights organization PRS – David Bowie, Sir Elton John and Eric Clapton.
The need to stay current is one of the music industry’s driving forces, and BMI meets that mandate with such names as Kanye West, the Black Eyed Peas, Maroon 5, John Adams, Juanes, Mariah Carey, Michael Jackson, Janet Jackson, Keith Urban, Lil Jon, Mike Post, Juan Luis Guerra, John Legend, Tim McGraw, Conor Oberst, Keane, Don Omar, Thomas Newman, Snow Patrol, Snuffy Walden, William Bolcom, Ivy Queen, Snoop Dogg, Shakira, Seal, Rhianna, Tiesto, Armin van Buuren, Paul van Dyke, Fedde le Grand, BT, Basement Jaxx, Paul Oakefold, Gorrilaz and many other top names on the contemporary scene. http://www.bmi.com/genres/C2681 (dance music)"

However, there's been communication through me about this being a problem for SL DJs and Clubs. Some are fearful that with BMI in SL and invested in the DJ/Club scene, they will begin investigating venues and DJs that may not have proper licencing to play music publicly. They may also begin designing rules and laws to regulate "virtual public music events". One angry raver said (as a group of 15 were hanging out in a club when Charming's Group Notice came through announcing the news.)"BMI is probably coming in to invent some new rules where virtual events are considered real life live events. They want to come in and take control of the music scene in SL, and make everyone pay to play."

One one hand,
But is taking BMI as a sponsor hypocritical? One DJ at the same club I was at said "It's like making virtual weapons, and accepting the Nazi's as a sponsor"

Danni Dollinger (owner of Funky House Club as well) has very positive reasons for wanting to be involved in SL. "i think its important to know the whole role of BMI . Its not only about licencing. Its also and moreover about discovering new artists and talented djs. BMI is a non-profit organisation that sponsors artist to spread their talents to the world BMIs major role here in SL and RL is for that in the forefront. We are really happy to explain BMIs role and plans for SL in tomorrows interview. Its actually a very exciting concept."

Are people just scared because they don't know what BMI and Funky House Club are up to? FHC owners are excited and happy to speak about their new adventure. Getting RL sponsorship from a music company is HUGE! Are the naysayers just jealous because he landed a big sponsorship deal?

I am going to interview Funky House Club owners tomorrow (Aug14th) so everyone can learn more about the project. I am also conducting several interviews with people that have strong opinions about this matter. (and you must be on the record).

Please stay tuned for the full story tomorrow. In the meantime, please post your comments or questions I should ask tomorrow.

--UPDATE-- Interview with Charming Babii & Danni Dollinger POSTED