MGN should develop partnerships with BMI, ASCAP and SESAC on royalty agreements and collections, and provide an easy and fair way to provide songwriters their due. There is a lot of monkey business in this area, and MGN stands in the perfect position to take the monkey business out of the jungle and into civilization. For example, the owner of Blues on Grand in Des Moines who has been fined by SESAC for not paying royalties on cover songs live bands play, would have recourse to MGN, who will initially:

1. Act as arbitrator between SESAC and the club.
2. Offer sensible and practical options to both parties by getting them both to use MGN as the agent of note to collect and disburse royalty payments.

MGN is the entity most able to do this because:

1. It has pre-existing relationships developed with the venue, the artist, and the songwriter. 2. Each of these parties can contact, communicate and collaborate with each other at any time anywhere. 3. Part of the MGN booking procedure requires bands to submit set lists, with title and composer (this can be Search Bot assisted).

The licensing agencies can contract MGN to do what would be their "dirty work," but to MGN would be an easy, amicable transaction. The pitch to the licensing agency is that through MGN, they can collect their fees directly from the publishers and artists, which come out of overall performance fees paid by venues--not a separate issue and charge--it's all part of performance dollars spent by the venue. This creates uncomplicated and dependable residuals for the songwriter, does not burden the performers, and is transparent to the venues. The venues especially come out ahead, because as members of MGN, booking, promotion, quality control, and business consulting is being provided, saving countless hours and the attendant stress. All that's left to the venue owner is artist relations, and even that can be coached by MGN.

This procedure also has the effect of finally being able to collect millions of dollars of royalties across a broad spectrum of live performance circuits, who are currently not participating in songwriter residuals. The boost to the music culture this could accomplish is inspiring to consider, and none of the parties involved need to make it an issue. It's just automatic as a member of MGN.

The byproduct of this is a huge incentive for performing artists to create original material and promote it to other artists.

Beyond the live performance situations, mechanical royalties from digital to material products can be processed through MGN due to the partnerships with leading publishers, licensing entities and manufacturers. Beyond that, when an MGN Member graduates with certification, has written songs using MGN resources that are being performed and recorded by MGN Member Bands at MGN Venues, every single person who writes a song is compensated. This compensation is effectively amortized across the entire process, so that monies coming in from download/ CD/ licensing/performance royalties can be paid at any point along the cycle.

Additionally, MGN is the obvious choice as publisher for MGN Members.

This module is where all the services of MGN come full circle, and so it should be factored in from the beginning as relationships are created in field, because it is the bread and butter of MGN revenues.

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