Gotrich:
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But you mention that even purchased, downloaded music, is not legal...well according to BMI DJing is illegal cause you can not use a CD bought in a store. So where do we draw the line?
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The line gets drawn wherever you're PLAYING the music. Keep in mind that it's not the STORE you bought it from or even HOW you got it or WHAT media it's on. The key is WHERE YOU'RE PLAYING IT (when it comes to performance licensing).
Take your cd boom-box (or computer with speakers) and play it in the park and it's in violation because the park is not "licensed for public performance" and it is still a "public place." Walk across the street to your local (ascap licensed) bar with it still playing and as soon as you hit the property line, viola! It's legal again.... and it still doesn't matter if you're playing a cd, record, cassette, computer or crank-me-up-grandma-gramaphone.
If the cd you purchased in the store has printed on it: "Not for public performance".... guess what.... you CAN play that in a "licensed" club.