Fail to Register Song - Lose Copyright?

Dear Rich: I read that the government is planning a song database and songwriters who don't register will lose all copyrights. Can you explain?
The Transparency in Music Licensing and Ownership Act (TMLOA) is a proposed law that, should it be enacted, would create a song database run by the Copyright Office. Supposedly, the database would make it easier to locate the song owner or PRO. Note:  A song owner does not have to register copyright to provide information to the TMLOA database.
Failing to register. A song owner who fails to register will not lose copyright. The "punishment" for not registering is that if the song owner sues a store, restaurant, web radio, or other industries mentioned in the TMLOA, the song owner can only collect the actual damages, not the statutory damages or attorney fees. The underlying effect of the proposed law would be to discourage lawsuits against various industries. The TMLOA is not considered particularly favorable to song owners, and has been characterized as "an all-stick, no-carrot deal."
Bottom line dept. A few things to keep in mind: (1) ASCAP and BMI are cooperating on their own publicly accessible database in order to discourage passage of this legislation. (2) Regardless whether the legislation passes, any song owner who doesn't file for copyright before infringement occurs, cannot collect statutory damages. (3) Considering the track record for proposed copyright legislation, the cost and technology required, as well as the rumors spreading about the TMLOA, the odds disfavor passage of this partisan business legislation.

Why Can't I Play Cover Songs at Farmer's Market?

Dear Rich: I sing and play guitar (for about 50 years now). A few years ago I started playing and singing at a local farmer's market. About a month ago the manager of the market said I couldn't play cover songs anymore. ASCAP had contacted them and threatened to sue. I just assumed this wouldn't apply to me since I am not paid to play and the market does not advertise live music. I just play for tips ($10 - $20 for four hours!) and this is a public place. So, if I play out on the street corner in downtown Tucson is ASCAP going to threaten to sue me? Also, is there some kind of fee I could pay just for the privilege of playing copyrighted songs? [Disclaimer: Members of the Dear Rich Staff belong to BMI, ASCAP's rival.]
For those readers who are unaware, ASCAP is a performing rights organization/society (known as a PRO or PRS) that collects money from those who play songs in public ("public performance"). It then, in turn, pays the owners of those songs, typically a songwriter or song publisher. PROs collect money from malls, radio stations, TV stations, restaurants, and any other institutions or merchants who broadcast or perform songs from the ASCAP repertoire. Lately the PROs have begun to pursue an overlooked venue -- farmer's markets. Here's what a typical ASCAP letter might look like. The Farmer's Market Coalition is amenable to working out an arrangement but has balked at the stiff fees demanded by the PROs. The organization has retained legal counsel to look into the issue.
Will they pursue me? We're sorry to learn that your busking career has been so drastically altered, especially after having enjoyed the gig for several years. If you decide to return to the streets, we don't think you'll be hassled by a PRS. Performing right societies don't pursue individual musicians, they pursue and license the establishments where the music is performed. You can't pay an "individual" fee for performing cover songs because ASCAP only collects from the businesses, establishments or sponsoring organizations.
Isn't it unfair? That depends on who you ask. Your arguments -- you're not being paid, the market doesn't advertise live music, it's a public place -- may work for espousing free speech, but they don't line up with copyright law or commercial reality. The right to "perform" a song is controlled by the copyright owner. In any case, you're free to play music in a commercial setting as long as it's not ASCAP music. So your original or public domain compositions won't get anyone in trouble. Whether you get paid or not is of no consequence because the market benefits in the same way Urban Outfitters and Whole Foods benefits by presenting a more "pleasing" shopping event. (Note, slow music makes people spend more!) If it weren't so, the music would get turned off. (PS. The Dear Rich Staff is old enough to remember when you didn't have to listen to music when you shopped for English muffins!)