Randy -- here is a key point from the fair use
provision that you posted:

> (3) the amount and substantiality of the portion
used >  in relation to the copy-righted work as a
whole

This particular exemption led libraries to adopt fair
use guidelines that limited the amount of copying from
a single title that could be done for another
institution on interlibrary loan.  

Had the museum profession had adopted similar
guidelines 30 years ago when the copyright laws were
significantly revised, individual museums could follow
such guidelines and enjoy more protection and a better
legal defense when charges of copyright infringement
are made. Nothing like this happened though, instead
each museum was more of less left to make its own
choices.  Many small museums scattered from from
coast-to-coast basically relied on nobody noticing
what they were doing.  

The above exemption I selected from your message was
intended to allow people to photocopy of a few pages
of an article or a book without violating copyright. 
In the case under discussion if the museum played a
small portion of a musical work, they might be able to
claim exemption under fair use, but if they are
playing the entire piece of music, then they fail the
above test.

Playing music to enhance the experience of viewing an
exhibit is neither scholarship nor research nor
classroom teaching.  I think it would be very
difficult to argue (or convince a jury) that the
educational benefit offered by the exhibit would be
compromised by not playing the particular piece of
copyrighted music.

Ultimately, it does not matter what the purpose of the
institution is. If "not-for-profits" ignore laws, they
are responsible for the legal consequences.  

Judy Turner
Whitefish Bay, WI

 
--- Randy Little <[log in to unmask]> wrote:

> Download title17 here
> http://www.copyright.gov/title17/
> 
> Read starting on the lower part of page 18 sec 107
> and sec 108.   I
> think you can basically tell BMI to go shove it. 

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