"Listening to our customers is paramount in our marketing plans," said Tom Annastas, Vice President, General Licensing, BMI. "We've been working business-to-business to create additional value and service for our customers. Our new program will provide a better business environment for two important clients -- the food service and beverage industry and the songwriters who depend on us for their livelihoods."

A key element of the program, Annastas said, is a new rate structure based on the actual use of music in a business rather than a broad-based fee system. Businesses may calculate their own fees by answering simple questions on a new BMI questionnaire about how music is played in their establishment. Another feature of the new rate structure is a minimal fee for businesses using television only. This license would apply to television used by businesses not exempt under the new "Fairness in Music Licensing" provision of the U.S. Copyright law.

Annastas said it is hoped that BMI's new marketing effort will help offset songwriter revenues expected to be lost as a result of the new legislation, which allows more than 70 percent of bars and restaurant to use radio and TV music for free.

"We want our customers to feel that BMI understands their businesses," Annastas said. "We want them to see that we are partners with them in the use of music rather than an administrative service."

Annastas said his staff has prepared new educational materials to help restaurants and bars 
enhance their business with musical themes, using music more effectively to improve their profit margins. BMI prepared an informative guide specifically for the National Licensed Beverage Association (NLBA) last year covering "How to Implement a Live Music Program to Increase Profits;" "How to Use International and Theme Music for Special Events;" and questions and answers on general music licensing. Additional easy-to-read brochures are being distributed to answer more questions about the use of music in the hospitality industry. Businesses are being encouraged to call a single phone number (1-800-925-8451) to obtain additional information.

Another service offered is a BMI-sponsored speakers bureau featuring music industry executives and songwriters for "hands-on, face-to-face communication" at trade association gatherings. BMI has restructured this area, Annastas added, to make more employees
available for one-on-one communication with business clients. BMI will continue to provide its songwriter/performers for entertainment at major trade conventions, promoting a better understanding of who benefits from performing rights licenses.

BMI also is expanding its considerable presence on the Internet to provide better customer service. "Our repertoire of songs and composers is listed there for research, or customers can call 1-800-800-9313 for help," Annastas said. "They can download license agreements from the web site and find answers to many of their questions. Our web site is being continuously enhanced to meet the needs of our clients."

BMI, as a performing rights organization, operates under the U.S. Copyright Law which recognizes musical compositions as intellectual property similar to newspaper articles, books, movies, television shows, photographs, artwork, sports broadcasts and computer software programs. Copyrighted music cannot be performed in public without the permission of the copyright owner. A "public performance" is defined as music played for third parties by almost any means including CD's, cassettes, records, videos, live musicians, telephone music-on-hold, jukeboxes and radio or television music played over a commercial system. BMI represents copyright owners in all genres of music and, through its music performance agreements, grants business legal access to its repertoire of over three million musical works.