Since 1975, Newby's has been a popular hang-out spot for generations of U of M students, but it is looking like future students might have to find another place to call their own. Broadcast Music Inc. (BMI) has recently filed a Federal Copyright Infringement Suit against Todd Adams, present owner of Newby's, for allegedly failing to pay his music-licensing fee; however, Adams said the allegations are false.
The bar was established by David "Newby" Harsh as a close-to-campus bar and grill that became known as "the college bar you never graduate from." When Adams purchased the bar in 1997, he also purchased the Highland Station concert venue and connected the two establishments. Newby's is known to many as a sports bar, nightclub and venue.
Over the past 10 years, Newby's has been in a battle with BMI concerning a disagreement about occupancy. Jerry Bailey, senior director of media relations for BMI, said researchers have returned to the bar three times and recalculated the total to 600. Adams said their claims are erroneous.
"I paid in full for the license, and they got a big, black magic marker and changed information," he said. "In the same year, some insane BMI person said our occupancy was six times was it is, and we either pay up or they will sue us ... We have two documents, one from the fire marshal and one from the Shelby County Health Department, that say our occupancy is 132."
BMI, founded in 1939, employs over 300,000 songwriters and publishers and gives access to 6.5 million songs. Bailey said writers "own the right to exclusive public performances of the song" they have written. Any performance, distribution or replay of that song requires royalties to be paid to the artist or songwriter. While only 3 percent of the revenue issued to artists comes from bars, nightclubs or restaurants, Bailey said club owners are still responsible for paying the annual fee.
"Every developed country in the world has a similar procedure to collect these royalties," Bailey said.
Bailey said BMI has attempted to contact Adams with 13 letters and 18 phone calls with no response. Finally, his company was forced to take action.
"He hasn't been licensed, despite our effort to educate him," Bailey said. "It's extremely easy to get a license. It's just a matter of filling out a simple checklist or giving your information over the phone."
Adams replied to these claims by again stating the falsity in BMI's report.
"We don't open up until three o'clock," Adams said, "and you can call 400 times if you want, and we won't answer until then. What they don't tell you is that I called them probably 100 times, and not once did they respond."
Another issue in the case is Adams's failure to pay the licensing fee. Bailey said Adams filed for a permit in May of 1999 that would insure his right to play music until April 2000. In May of 2000, he filed for a permit that would legally grant him permission until April 30, 2002. However, he never actually went through with the payment.
Adams's story is very different. He said he paid the $750 a year payment, and then BMI "created their own concept," asking for more money or legal action would be taken.
"That's like coming into Newby's, asking for a chicken sandwich and a cold beer, and expecting to pay nine dollars for it," Adams said. "Then when you get the bill it's $2,785. Would you pay the bill or look at me like I'm crazy?"
After almost a decade of legal battling, Adams said he "breathed a sigh of relief" in January 2007. His lawsuit was moved to Memphis, and a judge stated that the arbitration fees be set aside.
"The city threw the thing out," he said. "It was fraudulent and blatantly ridiculous."
Two days later, BMI filed federal charges against Adams for $60,000, claiming Adams had employed a cover band that played numerous BMI songs.
Bailey said many owners either "don't understand or try to ignore copyright law." He said that it is "extremely easy" to get a license and it is BMI's job "to compensate musicians." In addition, he said a larger business like a "honky tonk with a live band and cover charge" might have to pay a large fee, but most payments are affordable.
Adams said BMI is paid in a different way.
"BMI are big bullies," he said. "If you don't pay them, they'll sue you."
Whether it is big business vs. the little man or merely a common case of copyright infringement is unclear, one thing is for sure - Newby's and BMI still have a long way to go. Now in federal court, BMI's extensive legal team, mixed with all the finances they make from their multimillion dollar earning artists, could prove to be a major nuisance for Adams and Newby's.
"Any artist that works for them has to have no idea," Adams said. "It's a beautiful force on one hand, and the devil on the other."
