Do you have a business that plays music - read this

cobraboy

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
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TropicalPaul said:
It isn't a scam. I own a hotel in the capital, we had them on our backs for years, really years. Eventually we went to court and we had to pay them. They settled for RD$ 1000 a month. None of this money seems to get to the recording artists, it basically goes straight into someone's pocket, but the law here says that any business that plays music has to have a licence from Sgacedom. They are extremely aggressive, I think the inspectors / collectors are paid on a commission basis and they just hounded and hounded us, sometimes five or six calls a day, as well as walking into the business and threatening staff. My lawyer actually got into a fight with them and punches were thrown. Very nasty organisation, but I think that if they are on to you to you have to pay.
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My FL experience precisely.

Very nasty, and supported by law.
 
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TropicalPaul

Bronze
Sep 3, 2013
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By the way, we only play music streamed from Spotify. Never live music. Basically any type of music played in any commercial establishment should pay this. I did ask them why they hadn't targeted the Dominican run gym or the Dominican owned Colmado in my street and they just laughed. I think the main point of this is to fleece foreigners and "proper" businesses.
 
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windeguy

Platinum
Jul 10, 2004
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TropicalPaul said:
It isn't a scam. I own a hotel in the capital, we had them on our backs for years, really years. Eventually we went to court and we had to pay them. They settled for RD$ 1000 a month. None of this money seems to get to the recording artists, it basically goes straight into someone's pocket, but the law here says that any business that plays music has to have a licence from Sgacedom. They are extremely aggressive, I think the inspectors / collectors are paid on a commission basis and they just hounded and hounded us, sometimes five or six calls a day, as well as walking into the business and threatening staff. My lawyer actually got into a fight with them and punches were thrown. Very nasty organisation, but I think that if they are on to you to you have to pay.
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I would define what you describe as a "required scam". At least with respect to the musical artists.
 
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cavok

Silver
Jun 16, 2014
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Cabarete
This sounds like mafia style racketeering at its' best. Is their any accountability as to how much in fees is being collected vs how much in royalties is being paid out?
 
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Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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This is standard practice all over the world. Businesses that play music must play royalty to the composers unless it has entered the public domain. Music enters the public domain 70 years after the death of the composer. Associatons representing the composers, such as ASCAP, collect and distribute royalties.
 
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TropicalPaul

Bronze
Sep 3, 2013
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Fabio J. Guzman said:
This is standard practice all over the world. Businesses that play music must play royalty to the composers unless it has entered the public domain. Music enters the public domain 70 years after the death of the composer. Associatons representing the composers, such as ASCAP, collect and distribute royalties.
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I agree that it is normal practice, however the behaviour of Sgacedom is not normal. They constantly threatened my staff, they called maybe 10 or more times per day, they came to the hotel at least once a day, they shouted at my staff in front of customers. My lawyer came once when they were being particularly abusive and there was a woman who refused to leave, so my lawyer eventually almost forced her out of the door. She claimed that he was violent towards her and made a complaint to the fiscal, and then didn't show up for the hearing. I know that they have no legal right to collect this money, but they are so aggressive and threatening and, in my case the amount is so small (RD$ 1,300 per month) that you just give in to them.

I have a friend who works in a record company, one of the bigger ones in Dom Rep, he says that his artists have made contact with Sgacedom and asked for their payouts and have been told that there is nobody available to help them, everyone is in a meeting. I think unfortunately this is just one huge scam.
 
cobraboy

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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TropicalPaul said:
I agree that it is normal practice, however the behaviour of Sgacedom is not normal. They constantly threatened my staff, they called maybe 10 or more times per day, they came to the hotel at least once a day, they shouted at my staff in front of customers.
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That's SOP for ASCAP & BMI in the states.

AND the cost is hugely more. Hugely.
 
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