Harrison's Reports (1950)

44 HARRISON'S REPORTS March 18, 1950 "We are pleased to announce that by the entry of an Amended Consent Decree against ASCAP, the vacation of the judgment against ASCAP in the Alden-Rochelle case, and the withdrawal of all appeals therefrom by all parties, all objectives heretofore sought by the Independent Theatre Owners' Association, the plaintiffs in the Alden-Rochelle case, and motion picture exhibitors generally throughout the industry have been achieved. The disposition achieved under the leadership and the direction of ITOA exhibitors in this manner and with this most favorable result brings stability to the industry, quiets any claims that could be made against any of the exhibitors relative to the performing rights of music synchronized with motion picture films and releases the motion picture exhibitors of America— not only the plaintiffs — from any payment to or exaction by ASCAP for public performing rights for ASCAP music integrated with motion picture films. A more complete victory or a broader one for the motion picture exhibition industry could hardly be envisaged or hoped for. "Before this settlement and disposition was agreed upon by the Attorney-General, the ITOA, the defendant, ASCAP and the plaintiffs in the Alden-Rochelle suit a complete legal and factual survey of the entire ASCAP set-up and its relation to all users of music was carefully and painstakingly made with particular attention to safeguarding and assuring the rights of motion picture exhibitors in relation to the public performance of music synchronized and integrated with films to the end of making certain that such music may be freely and publicly performed by them, freely obtained by the producer, cleared at the source and all without charge to the exhibitor. All of the foregoing — has been fully, adequately and carefully assured by the presently consummated arrangements herein referred to. "The new consent decree has radically and fundamentally changed the entire ASCAP set-up and compels and assures the clearance of all ASCAP music — both synchronization and public performance rights — at the source with the pre ducers of the films. This was the cornerstone of the exhibitors' quarrel with ASCAP — this splitting of synchronization rights and public performance rights and separate exactions for them on the one hand from the producer and on the other hand from the exhibitor — this is now a thing of the past. Under the Amended Consent Decree, exhibitors will get the public performance rights of all ASCAP music integrated in the film directly from the producer included in the one right to exhibit the films. Exhibitors will no longer be required to deal with ASCAP nor with ASCAP members for the motion picture performance rights of music synchronized on film. Thus all of the protection which the exhibitors in the Alden-Rochelle case ever sought is granted not alone to them but to all exhibitors under the Consent Decree. "Furthermore, the new Consent Decree removes a source of uncertainty which had been troubling the industry, to wit, the public performance rights to motion pictures which had been produced between the date of Judge Liebell's decree in our Alden-Rochelle case and the termination of the pending appeals therefrom. "Under the Amended Consent Decree this troublesome and vexatious situation is quieted since neither ASCAP nor its members may sue any exhibitor for performing the music in any film which was synchronized in the past or to which music the performance rights had been granted to the producer. Futhermore, the Consent Decree also clears the producer from any claims in relation to such music since it provides that in relation to all past pictures already produced the producer will obtain the music performance rights to all such music in pictures which have been produced in the past upon their obtaining rights with relation to future produced pictures. "Furthermore, as to pictures that may hereafter be produced, no problem to vex the exhibitor can arise because the Amended Consent Decree provides that whenever a member of ASCAP grants a producer the synchronization rights of his music, arrangements must also be made whereby the producer obtains the performance rights either from such member or from ASCAP. "As an additional protection to the industry generally — really to the producer in whom, of course, the exhibitor is interested — the producer is now free to deal, if he wishes, directly with the individual member of ASCAP and is not restricted to dealing with ASCAP. All restrictions upon the right of a member to individually grant performing rights to the producer have been completely removed and a producer may deal as he sees fit — either with ASCAP or with the member of ASCAP in relation to public performance rights to so-called ASCAP music. "Furthermore, the power of ASCAP to exact any improper or inordinate charges for public performing rights is removed since the Amended Consent Decree provides that if a producer is not satisfied with the fee asked by ASCAP therefor, the producer may have the fee fixed by the Court. "Finally, no member of ASCAP, nor ASCAP, may at any time in the future bring any action against any exhibitor in relation to public performance of music synchronized on film. "In conclusion it must be said — with all humility — that the motion picture exhibitors' quarrel with the ASCAP set-up, the ASCAP exactions — has been resolved completely and entirely in favor of the exhibitor who is now completely freed therefrom." Although the ITOA has not been alone in this fight against ASCAP's music monopoly, the organization rates the thanks of every independent exhibitor for the relentless way in which it pressed its legal battle against the Society. And in giving thanks let us not forget Mr. Weisman, whose capable handling of the case brought about this great victory for the independent exhibitors. MYERS SEES ADDED HOPE FOR TAX REPEAL The defeat on a strict party vote of the Republican move for an immediate cut in the excise taxes was to be expected, according to a bulletin issued this week by Abram F. Myers, chairman of COMPO's Committee on Taxation and Legislation. The most the industry could have hoped for on such a move, added Myers, was that the war rate on admissions would be eliminated. Myers stated that the Eberharter resolution, adopted by the House Ways and Means Committee on Monday, goes far beyond the Republican move, for it provides that the Committee shall examine the excise taxes to "select for reduction or repeal" not only the wartime excises but also other excise taxes (a) that are regressive; (b) that enter into business costs; or (c) that have discriminatory competitive effects. "Regressive" refers to taxes the burden of which is relatively greater upon those with small incomes than upon those in the upper brackets. That the tax on movie tickets is regressive is one of the strongest points made in the joint statement filed with the Ways and Means Committee by Mr. Myers and Gael Sullivan. That the ticket tax has a discriminatory competitive effect was also urged on the Committee in the joint statement. As for the second category, taxes that enter into business costs, Myers feels that it may open the way for consideration of the tax on raw stock. The adoption of the Eberharter resolution "is definitely encouraging," said Mr. Myers. "No one now seems to doubt that some measure of ticket tax relief will be forthcoming. The remaining area of doubt is as to whether there will be a mere reduction or outright repeal. All industry members should now redouble their efforts. It is not enough for them to urge their Congressmen to support total repeal. They should petition them to work actively to that end." A meeting of Mr. Myers' Committee was scheduled for this Thursday to hear a report of the work done and the progress made thus far in the tax battle, with particular attention paid to the accomplishments in each territory so that prompt action can be taken to strengthen any weak spots that may appear. "The over-all picture is excellent," said Mr. Myers, "but some territories have done better than others and the Committee will press for a 100% performance in all."