Performance Rights Act Bill Introduced in the Senate

Posted by Admin on Friday, February 06, 2009 - 04:25 pm:

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Corporate radio loophole is unfair, unjustified and un-American

"Today marks the beginning of the end for corporate radio's loophole," said Jennifer Bendall, executive director of musicFIRST, upon introduction of the Performance Rights Act in the Senate and House of Representatives.



"It's unfair, unjustified and un-American that artists and musicians are paid absolutely nothing when their recordings are played on AM and FM radio. Music is their work, their livelihood. They deserve fair pay for air play," Bendall said. "Artists and musicians across America thank Senator Leahy, Representative Conyers and their colleagues for introducing bills that will close the corporate radio loophole."

The Performance Rights Act will close an archaic provision of America's copyright law that allows AM and FM radio stations to earn $16 billion a year in advertising revenue without compensating the artists and musicians who bring music to life and listeners' ears to the radio dial. The bipartisan bill was introduced in the Senate today by Senator Patrick Leahy (D-VT), chairman of the Senate Judiciary Committee, and Senators Orrin Hatch (R-UT), Dianne Feinstein (D-CA), Bob Corker (R-TN), and Barbara Boxer (D-CA); and in the House by Representative John Conyers (D-MI), chairman of the House Judiciary Committee, and Representatives Howard Berman (D-CA), Darrell Issa (R-CA), Marsha Blackburn (R-TN), Jane Harman (D-CA), John Shadegg (R-AZ), and Paul Hodes (D-NH).

"Every artist and musician from the biggest star to working class performers deserves to be paid when their performance, their work, is broadcast over the radio," Bendall said.

AM and FM radio is the only music platform that does not pay a fair performance right to artists and musicians for the use of their work. Satellite, cable and internet radio compensate artists when they play their music. AM and FM radio however receives a free pass to broadcast the recordings of thousands of artists and musicians every day without paying them a penny.

"American broadcasters literally earn billions by playing our records," said GRAMMY® winner Sam Moore. "All we ask is to receive what artists in every other civilized country around the world receive when their recordings are broadcast -- fair compensation for the performance of our work."

The Performance Rights Act brings the United States in line with almost every other nation in the world. Only a few countries do not provide a fair performance right on radio, including Iran, North Korea and China. And because the U.S. doesn't have a performance right, foreign stations do not have to pay American artists when their music is played on stations around the globe -- an inequity that costs American artists tens of millions of dollars each year.

"It's only fair that AM and FM radio be held to the same standards as other music platforms and terrestrial radio stations around the world," Bendall said.

Major provisions of the Performance Rights Act are as follows:

• Over-the-air broadcast stations would be able to use a statutory license and make one payment annually under a rate set through negotiations or by the Copyright Royalty Board for all the music they play, instead of having to negotiate with every copyright owner for each use of music.
• The proposed legislation accommodates small broadcasters and others to assure balance and fairness to broadcasters and artists. More than 75 percent of all commercial radio stations and more than 80 percent of all religious stations would be covered through the planned accommodation.
  • Small commercial stations would pay only $5,000 per year;
  • Noncommercial stations such as NPR and college radio stations would pay only $1,000 per year;
  • Stations that make only incidental uses of music, such as "talk radio" stations, would not pay for that music; and
  • Religious services that are broadcast on radio would be completely exempt.
• Proposed amendments to existing law would make clear that a new right for recording artists and owners cannot adversely affect the rights of, or royalties payable to, songwriters or musical work copyright owners.

"The legislators crafted an accommodation for small broadcasters -- but at the same time they did not want artists and musicians to continue to subsidize the radio conglomerates that rely on music to attract listeners and sell ads. The compromise language is fair to performers, fair to songwriters and fair to broadcasters," Bendall said. "A fair performance right supports and encourages the creativity and content that will continue to make American radio profitable."

People who love music understand that creativity, talent and hard work are required to bring it to life. The goal of the musicFIRST (Fairness in Radio Starting Today) Coalition is to ensure that aspiring performers, local musicians and well-known artists are compensated for their music when it is played both today and in the future. Of all the ways we listen to music, corporate radio is the only one that receives special treatment. Corporate radio has a free pass to play music -- refusing to pay even a fraction of a penny to the performers that brought it to life. The musicFIRST (Fairness in Radio Starting Today) Coalition is committed to making sure everyone, from up-and-coming artists to our favorites from years-ago, is guaranteed Fair Pay for Air Play. For more information on the musicFIRST (Fairness in Radio Starting Today) Coalition please visit www.musicFIRSTcoalition.org.

Supporting organizations include: American Association of Independent Music (A2IM), American Federation of Musicians (AFM), American Federation of Television and Radio Artists (AFTRA), Christian Music Trade Association (CMTA), Music Managers Forum - USA (MMF- USA), The Latin Recording Academy, The Recording Academy, The Rhythm & Blues Foundation, Inc, Recording Artists' Coalition (RAC), Recording Industry Association of America (RIAA), Society of Singers, SoundExchange and Vocal Group Hall of Fame.

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Username: Admin

Post Number: 5154
Registered: Dec-03

Posted on Friday, February 06, 2009 - 04:30 pm:

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RIAA Applauds Introduction of New Performance Rights Legislation

The Recording Industry Association of America (RIAA), a member of the musicFIRST Coalition, applauded the introduction today of bipartisan, bicameral legislation requiring that FM and AM broadcasters, like their satellite and online competitors and like virtually every other industrialized nation in the world, fairly compensate musicians and labels when music is played on the radio.

Upon introduction of the bill in the Senate and House of Representatives Mitch Bainwol, Chairman & CEO, RIAA commented:

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"This legislation is about fairness and a level playing field, plain and simple. The arguments for this legislation have never been more compelling, the time never more ripe, and the level of support within the music community never more strong. Every one of the competitors of FM and AM radio pays artists and labels for the use of their music. Moreover, in these economically challenging times, we cannot ignore the millions of dollars that's left on the table when American music is played overseas."

"The reasonable concerns of small broadcasters have been addressed in this bill. Nonetheless, the National Association of Broadcasters continues to thumb its nose at Congress and refuse to come to the table in good faith. We commend Chairman Conyers, Chairman Leahy, and their colleagues for their outstanding leadership on this important bill."

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The Recording Industry Association of America is the trade group that represents the U.S. recording industry. Its mission is to foster a business and legal climate that supports and promotes our members' creative and financial vitality. Its members are the record companies that comprise the most vibrant national music industry in the world. RIAA® members create, manufacture and/or distribute approximately 90% of all legitimate sound recordings produced and sold in the United States. In support of this mission, the RIAA works to protect intellectual property rights worldwide and the First Amendment rights of artists; conducts consumer, industry and technical research; and monitors and reviews state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi-Platinum™, and Diamond sales awards, as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.  

Username: Admin

Post Number: 5155
Registered: Dec-03

Posted on Friday, February 06, 2009 - 04:41 pm:

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NAB Urges Congress To Oppose Record Label Bailout

NAB President and CEO David Rehr urged lawmakers to oppose legislation introduced today that would force America's hometown radio stations to pay a new "performance fee" to the recording industry for music aired free on the radio. The legislation, introduced in the House, is supported by the Recording Industry Association of America (RIAA). A measure opposing today's Congressional action is expected to be introduced shortly.

"Local radio broadcasters consider this fee a 'performance tax' that will not only harm your local radio stations, but will threaten new artists trying to break into the business as well as your constituents who rely on local radio," wrote Rehr. "Although the proponents of H.R. 848 claim this bill is about compensating artists, in actuality at least half of this fee will go directly into the pockets of the big record labels, funneling billions of dollars to companies based overseas."

Three of the four largest record label conglomerates -- Universal Music Group, Sony Music Entertainment, and EMI -- are internationally-based.

"Although the big record labels have seen their revenues decline over the last decade, local radio broadcasters are not the reason the recording industry is losing money, and it should not be the industry to fix it," wrote Rehr.

To read a version of Rehr's letter to House lawmakers, click here (pdf).

50 State Broadcaster Associations also express opposition

State broadcast associations representing all 50 states, as well as Puerto Rico and the District of Columbia, also issued a resolution (pdf) today expressing opposition to a performance tax.

On numerous occasions, both record label executives and artists have recognized the promotional value of free radio airplay. Such statements include:

"I love a strong radio hit. All of us. That's what our job is, to have a radio hit. Without radio, we couldn't do what we do, but the job is to have a radio hit that sounds unique, and like you."

-- Jewel, Grammy-nominated recording artist, 'Nashville Star,' July 2008

"Alright, let's talk about the nuts and bolts. If you win 'Nashville Star', you have to get on 200 major market radio stations. You have to."

-- John Rich, Big and Rich, 'Nashville Star,' July 2008

"I have to thank... every DJ, every radio guy, every promotions guy, everybody who ever put up a poster for me and spread the word."

-- Alicia Keys, recording artist and Grammy winner, 2008 Grammy Awards, February 2008

"[R]adio remains the best way to get new music into the listeners' lives."

--Sony BMG Executive VP Butch Waugh as quoted in Radio & Records, January 11

"[R]adio is the conduit to the people, the voice of the format and the lifestyle's soundtrack.

--Sony BMG Nashville VP of Marketing Tom Baldrica, as quoted in Radio & Records, January 11

"Obviously, radio is probably the most important thing for a new rock band coming out. If you don't get yourself on the radio, then you won't draw bodies at the clubs and you won't sell records."

-- 'Another Animal' drummer Shannon Larkin, Drum Magazine, 2008

"Country radio, thank you so much for being our mouthpiece. You know what we do means nothing if it never gets played, and no one gets to hear it."

-- 'Rascal Flatts,' Vocal Group of the Year, Country Music Awards, 2007

"I can't even believe that this is real... I want to thank country radio. I'll never forget the chance you took on me."

-- Taylor Swift, Horizon Award (for best new artist), Country Music Awards, 2007

"I have yet to see the big reaction you want to see to a hit until it goes on the radio. I'm a big, big fan of radio."

--Richard Palmese, Executive Vice President of Promotion, RCA, 2007

"Radio has proven itself time and time again to be the biggest vehicle to expose new music."

-- Ken Lane, Senior Vice President for Promotion, Island Def Jam Music Group, 2005

"It is clearly the number one way that we're getting our music exposed. Nothing else affects retail sales the way terrestrial radio does."

--Tom Biery, Senior Vice President for Promotion, Warner Bros. Records, 2005

"That's the most important thing for a label, getting your records played."

-- Eddie Daye, recording artist, 2003

"Radio helped me a lot. That's the audience. I can't see them, but I know they're there. I can't reach out and touch them with my hand, but I know they're there."

-- B.B. King, recording artist, 2002

"If a song's not on the radio, it'll never sell."

-- Mark Wright, Senior Vice President, MCA Records, 2001

"Air play is king. They play the record, it sells. If they don't, it's dead in the water."

-- Jim Mazza, President, Dreamcatcher Entertainment, 1999

"I am so grateful to radio. Their support has truly changed my life, and I hope they know how appreciative I am for that."

-- Jo Dee Messina, recording artist, 1999

About NAB
The National Association of Broadcasters is the premier advocacy association for America's broadcasters. As the voice of more than 8,300 radio and television stations, NAB advances their interests in legislative, regulatory and public affairs. Through advocacy, education and innovation, NAB enables broadcasters to best serve their communities, strengthen their businesses and seize new opportunities in the digital age. Learn more at www.nab.org.