Music giant BMI suing New Jersey restaurants

• Every year, the BMI organization sues half-dozen bars in the state.
• BMI and other copyright organizations require businesses buy licenses to play music in public.
• Copyright violations can cost a business thousands per song.

This article was first published June 9 and updated June 11.

BRIDGEWATER – Billie Jean is not his lover and the Green Knoll Grill didn't have permission to play Michael Jackson's 1982 hit.

That mistake could cost this restaurant to the tune of several thousands of dollars for each of the four songs that Broadcast Music Inc. claims the venue played one Friday night in May 2014.

Green Knoll Grill also is accused of allowing patrons to rock out to the early-1990s Robin S dance hit "Show Me Love," Elvis Crespo's "Suavemente" and Lady Gaga's "Bad Romance" — which gives the Bridgewater watering hole the unlikely distinction of being the defendant in a lawsuit involving the House of Gaga as a plaintiff.

Green Knoll Grill is not alone. Every year, BMI sues about a half-dozen bars and restaurants in New Jersey alleging copyright violations. Last year, the music giant took more than 160 businesses to court, saying they played one of the 8.5 million songs in its repertoire.

The violations could be a result of music played on speakers, DJs spinning records, a band performing covers or patrons screeching out karaoke. The copyright laws are so complex that it takes into account the square footage of a public venue and how many sound speakers and television sets a venue has in order to determine whether a license is needed to just turn on the radio or TV.

Businesses that don't want to risk getting sued will pay for blanket licenses from BMI and the other two performing rights organizations — American Society of Composers, Authors and Publishers (ASCAP) and Society of European Stage Authors and Composers (SESAC). The three organizations license virtually every song heard on television and radio.

A spokeswoman for BMI on Thursday said the organization had made numerous attempts to reach out to the Green Knoll Grill since 2013.

"These lawsuits are a last resort and often come after years of outreach to a business," she said. "We do this on behalf of songwriters who entrust us to protect their copyright. They rely on their royalties and most are their own small business owners as well."

BMI is so large that it licenses half of all songs played on radio and has agreements with more than 650,000 businesses, resulting in $977 million in revenues last year, much of which the organization says was distributed to copyright holders of songs.

The BMI annual rates range from a minimum of $357 for a jukebox to $2.90 for every person allowed in a venue's maximum occupancy for a DJ to $5.85 per person for live music, according a typical bar license.

"While some business owners may avoid paying licensing fees for a while, it can be much more expensive than the cost of a music license in the long run," the National Restaurant Association, a trade organization, warns its members.

While most of these copyright cases are settled out of court, one case involving an Italian restaurant in Linden last year allowed the public to see just how costly such lawsuits can be for businesses. A federal judge in December ruled that Amici III Ristorante on West Elizabeth Avenue would have to pay $24,000, or $6,000 for each of the four songs BMI said the restaurant played last May.

The songs were the Rolling Stones' "Brown Sugar," Elton John's "Bennie and the Jets" and "Your Song," and Amy Winehouse's "You Know I'm No Good."

The restaurant's owner, Giovanni Lavorato, offered a terse, unprintable response when asked about the litigation on Tuesday. Some other New Jersey restaurant owners that have been sued since last year did not return calls for comment. Those who had hired lawyers filed court documents denying the allegations.

ASCAP says music licensing fees are "one of the many costs of doing business."

"Professional songwriters and composers earn much of their livelihoods by licensing the rights granted to them by copyright law," the organization, which represents a half-million songwriters and music publishers, says on its website. "ASCAP exists to protect that right by licensing the public performance of our members' music."

This isn't always music to artists' ears. In 2010, Bruce Springsteen was aghast when he learned ASCAP added his name to a lawsuit against a Manhattan bar that had played some of his recordings. The organization quickly dropped his name from the lawsuit.

BMI lawsuits in New Jersey

These restaurants were accused of playing these songs in lawsuits filed since last year.

Chestnut Chateau, Union Township (Union County)

• "Boxer" by Paul Simon, 1969

• "Every Breath You Take," by Gordon Sumner (aka Sting), 1983.

• "Joy to the World," by Hoyt Axton, 1970.

• "Me and Bobby McGee," by Kris Kristofferson, Fred Foster, 1969.

• "Sara Smile," by Daryl Hall, John Oates, 1975.

• "Tuff Enuff," by Kim Wilson, 1985.

• "Ring of Fire," by June Carter, Merle Kilgore, 1962.

Flip Flopz Beach Bar & Grill, North Wildwood

• "I Wanna Dance with Somebody Who Loves Me," by George Merrill, Shannon Rubicam, 1986.

• "You Remind Me of Something," by Robert Kelly, 1996.

• "Other Side," by Michael Balzary, John Frusciante, Anthony Kiedis, Chad Smith, 1999.

• "Ignition," by Robert Kelly aka R. Kelly, 2003.

• "Poison," by Elliot T. Straite, 1989.

Bobby Dee's Rock N Chair, Avalon (this lawsuit was settled and dismissed in April)

• "Dance to the Music," by Sylvester Stewart, 1968.

• "Daydream Believer," by John Stewart, 1967.

• "Honky Tonk Women," Mick Jagger, Keith Richards, 1969.

• "Sugar Pie, Honey Bunch," by Brian Holland, Lamont Dozier, Eddie Holland, 1965.

• "She's Some Kind of Wonderful," by J. Ellison (aka John Ellison), 1967.

• "Spirit in the Sky," by Norman Greenbaum, 1967.

• "Hit the Road Jack," by Percy Mayfield, 1961.

Zeppelin Hall Restaurant & Biergarten, Jersey City (settled and dismissed May)

• "All Mixed Up," by Nicholas Hexum, Douglas Martinez, 1996.

• "Billie Jean," by Michael Jackson, 1982.

• "Buddy Holly," by Ricers Cuomo, 1996.

• "Give it Away," by Anthony Kiedis, Michael Balzary aka Flea, Chad Smith, John Frusciante, 1992.

• "I Wanna Dance with Somebody Who Loves Me," by George Merrill, Shannon Rubicam, 1986.

• "Other Side," by Michael Balzary, John Frusciante, Anthony Kiedis, Chad Smith, 1999.

• "Zephyr Song," by Michael Balzary, John Anthony Frusciante, Anthony Kiedis, Chad Gaylord Smith, 2002.