Quoted from MapleSyrup:That would be incorrect. When you purchase a CD, it's now YOUR CD, but you don't have a license to play it for entertainment purposes in a public place. Dance clubs have to play licensing fees, bars have to pay licensing fees. They can't simply bring their "personal" CDs to work to avoid the fees.
It's a bit of a conundrum though. A busy arcade could have many licensed songs playing at once.
Also, you could put unlicensed music in your machine (via PB Browser etc).
I'm personally of the mind that pins should be exempt from a licensing fee. They make a cacauphany of noise, included in which is music.
Just read this now and this is all said in kind.
I hear what your saying, but the difference is, those entities you spoke of need to pay for the right to use the music because they're directly profiting/making money off of those songs specifically and another company didn't already pay that fee for them. Stern has paid those fees up front for us.
To clarify, Stern pays a licensing fee to the music industry. They are now paid in full and Stern has the right to sell that machine with it's music to the next person who (by default) buys into the license as well. The music in the machine is ours to use however we want, whether it's at our home, bar, arcade or wherever. Making money or not.
"WE" (you, me, an operator, whomever) have bought into the license by paying Stern back the licensing fees because Stern simply added that fee into the cost of each machine. It should not matter who buys the machine and what they do with it. It's licensed within the game and we've all paid for said license. It's not like you're going to take a pinball machine out and use only the music on it to crank out DJ entertainment. That's not it's function. The music is a game enhancement that plays in the back round (as you said), it's not the main form of entertainment.
As far as CD's go (which is comparing apples to oranges here), if I buy a CD can I then go use it to DJ with or copy to sell to someone else to make a profit off of? Absolutely not. Laws are written against that and I never have. BUT, I can take my CD I paid for, copy it to my computer and then to my I-pod and listen to it on any device I choose because the music on it is now mine.
DJ's have DJ specific sites they can buy music from and the right to use that music for their business is included in the price of the songs they buy because they are going to profit from it.
Anyway, what's next from ASCAP...if you play CD's you bought at a party in your home, you get fined, jailed or both? Bet they'd love to do that too.