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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 1:38 pm 
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hiteck wrote:
Lonman wrote:
hiteck wrote:
Lonman you've been hosting for what 16 years now? SC has been doing audits/certifications for almost 3 years now. If you don't mind me asking, why is it that you are just recently requesting your audit? Wasn't there issues with the audits you weren't comfortable with?

20 years.
I did not want to have to put a physical scratch in the disc ring. That leads to break down & weakens the plastic at that point which could cause cracks in the disc. When I found out they went to a ultraviolet stamp method, I immediately contacted them! CB was going to be next, but figured i'd get my larger collection out of the way first. Hopefully Digitrax will have some kind of method as well for the CB tracks.


Sorry my mistake on the years hosting.

So since SC's announcement of requiring an audit for media shifting, you've been playing SC tracks from original SC media only? You don't have to answer that.
I don't think I ever made it a secret I was running on computer since 08. But every disc was with me at every show with means to play them at any given time.

Quote:
My current hangup, even though is a different reason, isn't much different than yours was. Once that was changed you volunteered for the audit.

There is one particular aspect of the CNS (access to accounting records) I don't agree they need access to and is the only reason I'm not jumping on board. According to Harrington its more for identifying muli-riggers. If I'm volunteering for an audit and providing my contact information, business name, etc... do you really think I'd take a chance on multi-rigging? I'm not even a technical infringer!

In regards to the accounting records, what I may charge for a show, how much I may spend on advertising, equipment, etc.. really isn't any business of a vendor.

Well I don't think accounting records would ever come to play if you just remain 1:1 and abide by the rules - which sounds like you intend to. My accounting records weren't even brought up. I just showed my original discs & that was that - not even orignal receipts even though I could probably produce around 90% of them, not the ones that were given to me or the ones I bought used from customers. I am not planning on doing anything that prevented me from signing the agreement.

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 1:39 pm 
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Smoothedge69 wrote:
Lone Wolf wrote:
kjathena wrote:
so Lone Wolf le'ts say someone was concerned that what you are saying may be true......wouldn"t that be all the more reason to stay legal by either 1. Getting certified before being named 2. Using original manufactures disc's or 3. not using any of the questionalable trademarked tracks?

Just askin'

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Athena


Given the 3 choices I'll take #2
Just wondering what they would do if I were using this?

http://store.sony.com/webapp/wcs/stores ... =DVPCX995V

They would never see a disc.

I have a friend that uses one of those for her show, and it is LOADED with Sound Choice. But if an inspector were to come in, they would see NO discs, whatsoever.

But they would see the player. However I didn't see anything stating that player reads/plays cdg either. However I do know SOME dvd players do in fact play cdg even though they do not state it. I have a couple $30 Walmart dvd player that actually play cdg without stating it.

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 1:46 pm 
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chrisavis wrote:
...
The only mention of anything related to Sound Choice having access to my "financial records" pertains only to proof of purchase of music. Specifically....

Paragraph 4, Section D. - Documents/Books. You should assemble for inspection all of your song lists/song books and receipts from disc purchases made within the last five years. Receipts for disc purchases may be verified against seller records to prevent falsification.

That's it.

They don't ask to know how much I make in a show.
They don't ask to know how much I pay my hosts.
They don't ask to know how much I spend on sound, lighting, props, or anything else.


According to Harrington the current CNS says
HarringtonLaw wrote:
It says:
YOU will comply in all reasonable respects with such audits, making available for inspection YOUR equipment, files, and accounting records relating to the acquisition, disposition, and use of MEDIA.



That's a little different than what you posted.

Here's an aquisition and response when I asked for further info
HarringtonLaw wrote:
hiteck wrote:
So accounting records realting to acquisition, disposition and use of MEDIA records would be:

Acquisition: Receipts and/or bill of sales for purchases?

Dispostition: copy of bill of sale or similar if media was sold to another individual or entity?

Use of Media: Copy of forms or payment and or 1099's? Not really sure why they'd want this?

Have I missed or overlooked anything?


Yeah, that would be it.

Here is how that comes up. You have to remember that we use this document for several different purposes, and we audit under several different circumstances. One of the things we are occasionally having to guard against is the situation where someone buys discs to "cover" tracks that they didn't have discs for at the time of an investigation. So we will sometimes ask for documentation on when a disc was acquired. Other times, someone who is an active buyer and seller of discs might need to account for having had a disc during a show investigation that they later sold. If you had a disc but sold it--which is OK--we might ask for documentation about the date on which you sold it.

The third item is usually more important when somebody is running multiple rigs. We settled a case with a guy one time who was running 9 rigs or so. Most people that run that many systems keep track of at least some basic accounting information so that they know what each rig is producing, etc. This guy was no exception--he had a spreadsheet that he used to keep track of revenues and payments for each system. If we were running an audit on him, we'd probably want to take a look at that spreadsheet so that we could make sure he hadn't created additional systems that we didn't know about.

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 1:48 pm 
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Lone Wolf wrote:
Smoothedge69 wrote:
Lone Wolf wrote:
kjathena wrote:
so Lone Wolf le'ts say someone was concerned that what you are saying may be true......wouldn"t that be all the more reason to stay legal by either 1. Getting certified before being named 2. Using original manufactures disc's or 3. not using any of the questionalable trademarked tracks?

Just askin'

Blessings
Athena


Given the 3 choices I'll take #2
Just wondering what they would do if I were using this?

http://store.sony.com/webapp/wcs/stores ... =DVPCX995V

They would never see a disc.

I have a friend that uses one of those for her show, and it is LOADED with Sound Choice. But if an inspector were to come in, they would see NO discs, whatsoever.



Gee I wasn't even sure it would read CDG's but thought it might being a DVD player.
So how's work for her?

She's been using it since I have known her, and it works well. It's not hers. The bar she works at owns the system. It may not be the exact model as you have shown, but it IS a large carousel system like that.

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 2:08 pm 
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Lonman does your CNS include the following verbiage/paragraph/section?
chrisavis wrote:
Paragraph 4, Section D. - Documents/Books. You should assemble for inspection all of your song lists/song books and receipts from disc purchases made within the last five years. Receipts for disc purchases may be verified against seller records to prevent falsification.


Chris are you sure that's the CNS you signed or is that the instructions oh how to prepare for your audit?

The most recent CNS I've been able to locate contains the verbiage Harrington referred to. It appears to be dated 3-28-12

http://www.soundchoicestore.com/skin1/images/3-28-12%20COVENANT%20NOT%20TO%20SUE%20~~%20with%20watermark%20~~.pdf

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 2:30 pm 
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hiteck wrote:
Lonman does your CNS include the following verbiage/paragraph/section?
chrisavis wrote:
Paragraph 4, Section D. - Documents/Books. You should assemble for inspection all of your song lists/song books and receipts from disc purchases made within the last five years. Receipts for disc purchases may be verified against seller records to prevent falsification.


Chris are you sure that's the CNS you signed or is that the instructions oh how to prepare for your audit?

The most recent CNS I've been able to locate contains the verbiage Harrington referred to. It appears to be dated 3-28-12

http://www.soundchoicestore.com/skin1/images/3-28-12%20COVENANT%20NOT%20TO%20SUE%20~~%20with%20watermark%20~~.pdf


My information does in fact come from the Pre-Suit Audit agreement which I mistakenly referred to as my CNS.

However, in comparing my actual CNS forms to the one you linked (and there are some slight differences btw), there is ZERO mention of providing financial information to Sound Choice, in either my version of the CNS or the one you linked to.

Voluntary audits do not require you to show anything more than a proof of purchase.

-Chris

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 2:35 pm 
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hiteck wrote:
Lonman does your CNS include the following verbiage/paragraph/section?
chrisavis wrote:
Paragraph 4, Section D. - Documents/Books. You should assemble for inspection all of your song lists/song books and receipts from disc purchases made within the last five years. Receipts for disc purchases may be verified against seller records to prevent falsification.
Yes it does. Even though I do have all of that, it was not (the receipts anyway) requested for the audit itself. I did provide book/song-lists.

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 2:36 pm 
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chrisavis wrote:

My information does in fact come from the Pre-Suit Audit agreement which I mistakenly referred to as my CNS.

However, in comparing my actual CNS forms to the one you linked (and there are some slight differences btw), there is ZERO mention of providing financial information to Sound Choice, in either my version of the CNS or the one you linked to.

Voluntary audits do not require you to show anything more than a proof of purchase.

-Chris


Accounting records not financial information, and it's in regards to future audits not necessarily the initial audit. See Attachment.


Attachments:
CNSaccountingrdrds.jpg
CNSaccountingrdrds.jpg [ 160.23 KiB | Viewed 16911 times ]

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 2:36 pm 
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chrisavis wrote:
wiseguy53 wrote:
chrisavis wrote:
hiteck wrote:
Tell me again why the audit costs $125? If it's for the banner, t-shirt, other marketing materials and listing on the website I can do without those items.


Time is not free. And before you flip it claiming that your time isn't free either, consider that for the person audited, it is a one time occurence. You may give up a couple of hours and then you are done with it.Those doing the auditing are repeating the process over and over and have to continually dedicate resources to it. There is a cost associated with that.

-Chris

First, it's not a one time occurrence. Second, it's not the KJ who is benefiting from an audit but instead are being charged for doing something they should be allowed to do in the first place. I don't care how you spin it SC is trying to use ALL KJs for their own benefit at the KJs expense.


What KJ's that have been audited the first time have been audited a second time? Not saying they don't exist, just that I have yet to hear of anyone mentioning they have been audited more than once.

-Chris

This statement by SC leads me to that assumption.

"If you successfully complete the audit, Sound Choice will be willing to not file suit or dismiss the suit against you provided that you agree to adhere to all applicable copyright and trademark laws with regard to the use of Sound Choice accompaniment
tracks and to submit to future audits at Sound Choice’s reasonable request."


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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 2:43 pm 
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hiteck wrote:
chrisavis wrote:

My information does in fact come from the Pre-Suit Audit agreement which I mistakenly referred to as my CNS.

However, in comparing my actual CNS forms to the one you linked (and there are some slight differences btw), there is ZERO mention of providing financial information to Sound Choice, in either my version of the CNS or the one you linked to.

Voluntary audits do not require you to show anything more than a proof of purchase.

-Chris


Accounting records not financial information, and it's in regards to future audits not necessarily the initial audit. See Attachment.


I was just about to revise my post because I caught that line myself. However, it only applies to the "acquistion, disposition and use of the MEDIA".

Again, they are not asking for your IRS records, how much you make or pay a year, or anything other than proof of purchase.

Btw.... "accounting records" don't necessarily have to have any dollar amounts associated with them. Since I trade discs occasionally, I simply keep emails associated with the trade or write up a simple document explaining the discs traded. Those are my "proofs of purchase".

-Chris

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 2:44 pm 
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Why not? I passed once, if they want to come out & look again, have at it. I don't think i'd 'pay' to be audited again on the same system - that would piss me off, that one would be on them. But I know there would ever be a reason on my end to need to re-audit. I have never multi-rigged, never downloaded tracks for free, nor traded libraries with other kj's (which is stupid IMO anyway) or bought any loaded hard drives. I run one show, 7 nights in which the discs are always sitting on the counter WITH means to play them at any given time. If I hear of more work or get inquireies because a club is specifically looking for a certified host, I will pick up the GEM series and get going - no audit required for that as it's already certified & registered to me only!
A yearly fee for re-certification is a different story, and from what I understand is like $25, but I don't recall hearing of anyone having to pay anything yet for that.

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 2:52 pm 
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chrisavis wrote:
Again, they are not asking for your IRS records, how much you make or pay a year, or anything other than proof of purchase.


Not according to their attorney:
HarringtonLaw wrote:
Yeah, that would be it.

Here is how that comes up. You have to remember that we use this document for several different purposes, and we audit under several different circumstances. One of the things we are occasionally having to guard against is the situation where someone buys discs to "cover" tracks that they didn't have discs for at the time of an investigation. So we will sometimes ask for documentation on when a disc was acquired. Other times, someone who is an active buyer and seller of discs might need to account for having had a disc during a show investigation that they later sold. If you had a disc but sold it--which is OK--we might ask for documentation about the date on which you sold it.

The third item is usually more important when somebody is running multiple rigs. We settled a case with a guy one time who was running 9 rigs or so. Most people that run that many systems keep track of at least some basic accounting information so that they know what each rig is producing, etc. This guy was no exception--he had a spreadsheet that he used to keep track of revenues and payments for each system. If we were running an audit on him, we'd probably want to take a look at that spreadsheet so that we could make sure he hadn't created additional systems that we didn't know about.

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 2:59 pm 
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hiteck wrote:
chrisavis wrote:
Again, they are not asking for your IRS records, how much you make or pay a year, or anything other than proof of purchase.


Not according to their attorney:
HarringtonLaw wrote:
Yeah, that would be it.

Here is how that comes up. You have to remember that we use this document for several different purposes, and we audit under several different circumstances. One of the things we are occasionally having to guard against is the situation where someone buys discs to "cover" tracks that they didn't have discs for at the time of an investigation. So we will sometimes ask for documentation on when a disc was acquired. Other times, someone who is an active buyer and seller of discs might need to account for having had a disc during a show investigation that they later sold. If you had a disc but sold it--which is OK--we might ask for documentation about the date on which you sold it.

The third item is usually more important when somebody is running multiple rigs. We settled a case with a guy one time who was running 9 rigs or so. Most people that run that many systems keep track of at least some basic accounting information so that they know what each rig is producing, etc. This guy was no exception--he had a spreadsheet that he used to keep track of revenues and payments for each system. If we were running an audit on him, we'd probably want to take a look at that spreadsheet so that we could make sure he hadn't created additional systems that we didn't know about.



Again..... you are mixing VOLUNTARY audits with someone who was sued.

In a voluntary audit, you do not provide anything more than proof of purchase.

-Chris

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 3:04 pm 
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...I don't deny that I now, have seen a few different agreements and all seem to be a little different in nature.


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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 3:15 pm 
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Lonman wrote:
If I hear of more work or get inquireies because a club is specifically looking for a certified host, I will pick up the GEM series and get going - no audit required for that as it's already certified & registered to me only!


If this job were 1 night a week, amortized at 25% of your current rate of pay, (because you wouldn't want to devote 100%) it will take approximately 4 years to pay for the inital 5 year lease program.

2 years if you devote 50% and approx 1 year of making nothing just to pay for it.

And that doesn't include the cost of any type of sound system.

If your basic rate of pay in your area is the $100 you claim it is, getting into this business is foolish.


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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 3:26 pm 
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I'm not going to do it if the club isn't going to pay my rate :roll: . Yes other factors would have to be met, but I would still go that way. No different in any business to expect to take a loss for a couple years on a new acquirement. And if I cannot get regular gigs, then I will sell it someone else who would like to get the GEM and have all licenses transferred to them. I would most likely wait until it goes on sale again though. But it's nothing I need now, so i'm not going to stress about it at all.
Although I get inquires for private shows from time to time that I have to turn down and pass on to other companies I worked with in the past. However I just turned down 3 shows within the last couple weeks. I don't advertise private shows anymore, but if that continues regularly, I may jump in with just the GEM to get it going as well. Although I kind of like my weekends free :wink:

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 3:28 pm 
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chrisavis wrote:

Again..... you are mixing VOLUNTARY audits with someone who was sued.

In a voluntary audit, you do not provide anything more than proof of purchase.

-Chris

Well, I guess I couldn't pass an audit. I bought my SC discs years ago. i have no receipts left. Oh well, more reason to abandon them.

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 3:35 pm 
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Smoothedge69 wrote:
chrisavis wrote:

Again..... you are mixing VOLUNTARY audits with someone who was sued.

In a voluntary audit, you do not provide anything more than proof of purchase.

-Chris

Well, I guess I couldn't pass an audit. I bought my SC discs years ago. i have no receipts left. Oh well, more reason to abandon them.

I didn't need receipts for my audit. And my buying started in 1994.

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 3:46 pm 
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chrisavis wrote:
Again..... you are mixing VOLUNTARY audits with someone who was sued.

In a voluntary audit, you do not provide anything more than proof of purchase.

-Chris


No sir I'm not. I even asked HarringtonLaw about that if there were as different CNS document for voluntary audits.

HarringtonLaw wrote:
hiteck wrote:
I still really don't get the need for the financial records portion of the CNS.

Adquisition:
Is not having the original media enough to prove a purchase was made or in the very least that I would be 1:1 providing I had one copy of those tracks on one hard drive? It's good enough for an audit and initial certification, no?

Disposition:
If I sold some SC material wouldn't I want to document that as a defense if a case was ever made against me? Honestly if I was being sued by SC, I'd think they wouldn't want me to have that information.

Use of media:
If a KJ is operating illegally and working off the books and doesn't keep track of all of his/her financial records or claims he doesn't where does that leave you?

Can SC not aquire this type of information from venues?

Again we're talking about KJ's volunteering and paying for the audit, not potential pirates that were sought out and given the option of an audit at no cost. I realize the need for some of this in regards to pirate KJ's but not the one's who are trying to comply with SC's request whether they agree with it or not.

Seems to me there should be a CNS for KJ's who volunteer and another CNS for KJ's who opt to audit after being named in a suit.


Well, we're trying to have one document. It is an enormous administrative process to maintain different versions of similar documents for different purposes. The rule of reason applies here. No one at SC has a great desire to comb through financial records just for the heck of it. It only gets requested when anomalies raise questions that can't otherwise be answered.

(Incidentally, there are no longer any "no cost" audits. The post-suit audit now carries a base fee of $500.)

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 Post subject: Re: SC audits question
PostPosted: Thu May 10, 2012 3:49 pm 
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Quote:
No one at SC has a great desire to comb through financial records just for the heck of it. It only gets requested when anomalies raise questions that can't otherwise be answered.
I think this is the key here!
Maybe discrepencies between a book, hard drive & discs not matching up? I'm sure that might be cause for financial request.

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