Most people don't associate Minnesota's harsh climate with wine, but our second-generation vineyard has been challenging that notion for more than 40 years. After introducing Minnesota's first wine produced with 100% locally grown grapes, we've seen our state's industry blossom to support over 15,000 jobs and attract over 20,000 tourists to Minnesota each year. That was until the pandemic was declared.
Minnesota wineries welcome music but …
… not the shakedown from music middlemen that follows.
By Nan Bailly
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Like every other small business in the state, COVID-19 has significantly strained vineyards and wineries. Last year's harvest from approximately 80 wineries yielded 40% fewer grapes than pre-pandemic levels. It's not the state's cold climate that's to blame — we have a variety of cold-hardy grapes that can withstand the frost. The strain was primarily due to the lost revenue associated with fewer tourists, higher prices of raw materials and increasing labor costs.
It took until this past spring to fully open vineyards to tourists. Still, now, we find ourselves defending against old foes that use their incredible market power to bully family-owned businesses. We believe Minnesotans and our elected leaders would be surprised to learn that one of the biggest problems we currently face has nothing to do with COVID-19 but comes from the music we play in our tasting rooms to create an inviting atmosphere and entertain our guests while they sip a glass of Minnesota nice vino.
Simply put, when we want to play music or hire a local musician, we need to buy licenses from performing rights organizations (PROs) that offer blanket licenses covering millions of songs within their respective catalogs. And we are happy to purchase these licenses and pay our musicians for their creative works. As with the wine we are so proud of making, we respect and understand the creative process. However, often PROs (like the American Society of Composers, Authors and Publishers and Broadcast Music Inc.) use their power over information and near duopoly control of music (together, they control almost 90% of all music) to bully and harass business owners like us.
Some of the PRO actions seem so outrageous that at first glance they almost appear comical, but I can assure you it's not funny when someone enters your business, without identifying themselves, loiters while using profanity or abusive language to intimidate you while trying to "catch" you in a licensing fee disagreement. If they determine they have caught you, they will send you an invoice that is based upon an estimated balance and provides no context for the business owner. Sometimes, the invoice you're sent is actually a double charge for a service you've already paid for through a separate vendor. These PROs will even harass you at home, calling you repeatedly and at all hours.
Sometimes their conduct is so egregious, that the venue chooses to stop playing music altogether. That's tragic. When small businesses like ours stop playing music, it not only impacts our guests and our atmosphere, but it also affects the entire music ecosystem. It means less revenue for songwriters and fewer opportunities for local artists to perform, get paid, and discover new audiences.
This isn't unique to Minnesota — it's happening across the entire country. In recent years, several states like Colorado, Nebraska, Oregon, Virginia and Washington have recognized the inappropriate behavior that wineries and other venues encounter when interacting with various PROs.
Such interactions have led lawmakers to outright ban certain behaviors, such as the use of profanity or abusive language, and convinced them to designate a much longer list of activities as unfair or deceptive practices.
I firmly believe a similar law is needed at the federal level to protect Minnesota wineries. Without Congress's help, small businesses like mine have no negotiating power and no leverage to stand up against this music mafia.
We're proud of our ability to support local musicians and bring in dozens of bands every year. We believe that music is essential for bringing people together. Making it easier to share and enjoy music is good for our businesses and our community.
It's hard enough to be known as the place "where the grapes can suffer." Let's make it easier on businesses trying to make a difference by leveling the playing field for family-owned businesses like mine.
Nan Bailly is the owner of Alexis Bailly Vineyard in Hastings, Minn.
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Nan Bailly
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