GROOVESHARK/VDJ: I'm surprised that no one was discussing this.

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That happens all the time - you hear about usually in relation to domestic help - a maid or nanny.
You pay your help and taxes are due on that money - if YOU pay the taxes then you are the employer. If you tell them to pay then they are an independent contractor and you should send them a 1099misc form at the end of the year. This is how the IRS tracks the income for tax purposes. I"ve been sent 1099s from my credit card processing company and local govt that I did a video job for (they say because I'm not incorporated they must send me a 1099).

The law is extremely specific on this. the irs requires that you file a schedule C if you receive a 1099Misc form someone.
BTW, there are 18 kinds of 1099 - for bank interest, retirement income, social security income, etc.

I shall not debate what an employee / employer is or is not. This has nothing to do with the conversation.

What is hired help????? That is not a legal term..it MEANS NOTHING.
If I pay someone to help me roadie my gear...they are what? Help I hired, hired help. Could be an employee or Mayflower moving company.

You either pay a person as an employee or not. If not, then they are a COMPANY. there isn't a third option in the eyes of the law and the IRS.

You're over analyzing this. Get away from employee / employer. Keep it simple. There are 2 objects. The contractor .. and the client. That's it. ASCAP / BMI / SESAC really doesn't care how many people you have working for you. Are you running a public commercial event / facility drawing a crowd with music that results in products being purchased?

the bouncer's employer may be held liable which is usually the bar. But i've seen individuals fined for serving...it's not always the company/owner that faces charges and fines.

The bouncers employer will be held liable. Individuals being fined / charged is usually in addition to the bar owner being held liable. Ignorance of a law / requirement does not give you a free pass. As a venue owner, it is your job to know what rules apply before you do something. It is well known that you need a liquor license to sell alcohol. Are there bars that do it without one? I'm sure you can find some.

It seems most if not all here know exactly how this works..now I've asked about 10 or 12 local DJs about this over the years...and NOBODY has an answer. The one I've heard most often is "belong to a pool and you're covered - they take care of the licensing"

Which apparently isn't true at all.

I agree with this. It is not true.
 
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Performance royalties are assessed on the gross revenues attained at the point of performance, and liable to the promoter or or beneficiary of the performance. The point of performance is the nightclub, the beneficiary is the corporation, entity, or person, that owns it. If the clubs annual gross revenues during entertainment hours is $1.7 million, then this is the amount against which the formula is applied.

Whatever the club DJ got paid out of that revenue was already a part of that calculation. No one cares about the apples (stipend) given to a DJ when you have already taxed the entire tree from which they came.
 
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It seems most if not all here know exactly how this works..now I've asked about 10 or 12 local DJs about this over the years...and NOBODY has an answer. The one I've heard most often is "belong to a pool and you're covered - they take care of the licensing"

Which apparently isn't true at all.

I'm certainly no expert. I heard a bunch of different things. So I went to the websites of bmi and ascap. They make it pretty clear.

No mention of record pools.
 
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Record Pools should alleviate you from scrutiny from the RIAA (assuming the pool is legit). They have nothing to do with the performance rights organizations (ASCAP/BMI/SESAC).

ASCAP (et al) care not where you get music from, they want to collect if you play it in a public fashion .. RIAA cares not how and where you play it, just want to make sure it is acquired via a mechanism that generates income. There are exemptions to both sides. These also have nothing to do with the TOS you agree to with iTunes or Amazon, which is why the RIAA and the ASCAPs care not whether you play out a song acquired from those places.

Bottom line, YOU should never need a performance license unless YOU are putting on a show where you are promoter. And, assuming you get music from other than Pirate Bay (or whatever has replaced it) or by buying a loaded HD off CL .. and don't offer it back up in those places, you shouldn't be subject to the RIAA's wrath.
 
please dont get me started with copyright here in Australia......... its a nightmare