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This would be illegal in any other kind of contract, but ASCAP received the stamp of approval of the US District Court in Manhattan – which has been their pet court for decades.If the owner of a business ever pays ASCAP or BMI one time, he had better pay them forever, because he has signed a self-renewing contract that never ends. This is why ASCAP often sues businesses who quit paying them, but seldom sues businesses who never pay.A look at ASCAP & BMI – How the music licensing scam works: If you own a nightclub or any other business where there is music playing – even on a television – you have probably been “shaken down” by ASCAP and/or BMI.These two groups are the licensing agencies for hundreds of thousands of copyrighted songs.To gain admission to ASCAP a writer had to have published five hit songs, a requirement that kept new writers out in the cold.Likewise, the system favored established publishers, about 15 of whom controlled 90 percent of the most-played songs on radio.Where the money goes: The major amount of license money for both groups comes from something called “Public Performance for Profit” and any venue that uses music for profit – nightclubs, restaurants, even supermarkets that play Muzak – has to pay a fee. Instead, the largest recipient of ASCAP money is the organization itself, their lawyers, and their representatives, who are paid a commission to “shake down” small businesses across America.

It is a story I have been working on for over five years.

BMI’s purpose was to provide an opportunity for those writers and publishers unable to gain entry into ASCAP, and to provide an alternative source for broadcasters and venues.

It was hoped that BMI would do a more honest job, and that songwriters and everyone else in the music business would profit. The same kind of greedy vultures that operated ASCAP soon took over BMI, and it simply became a competing scam.

In those days, it was mostly sheet music and rolls for player pianos that were sold. ASCAP was supposed to help composers get their royalties, but the organization soon became a racket.

By the late 1930s, ASCAP comprised only 1,100 writers and 140 publishers.

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