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Performance Royalties Bills Introduced Print E-mail
Tuesday, 12/18/2007
In the House, the bill was introduced by Reps. Howard Berman (D-CA) and Darrell Issa (R-CA), while in the Senate the effort is being spearheaded by Sens. Patrick Leahy (D-VT) and Orrin Hatch (R-UT). The Senate bill is co-sponsored by Sens. Dianne Feinstein (D-CA) and John Conyers (D-MI).

Broadcast stations would, under the bill, be allowed to use a statutory license to make one annual payment at a government-set rate. If they don't choose that option, they'll have to negotiate rights separately with each copyright owner whose music they want to use WASHINGTON -- December 18, 2007: Bills that would impose a performance royalty on over-the-air broadcasters were introduced Tuesday in the House and Senate.

In the House, the bill was introduced by Reps. Howard Berman (D-CA) and Darrell Issa (R-CA), while in the Senate the effort is being spearheaded by Sens. Patrick Leahy (D-VT) and Orrin Hatch (R-UT). The Senate bill is co-sponsored by Sens. Dianne Feinstein (D-CA) and John Conyers (D-MI).

Broadcast stations would, under the bill, be allowed to use a statutory license to make one annual payment at a government-set rate. If they don't choose that option, they'll have to negotiate rights separately with each copyright owner whose music they want to use.

"Small" commercial stations -- those that bring in less than $1.25 million a year -- would pay a $5,000 annual flat fee. That provision, according to the bill's sponsors, would cover more than 75 percent of all music stations. Noncommercial stations would pay $1,000 a year, while Talk and other stations that play music only "incidentally" would not pay royalties on that music. Religious services broadcast over the air would be exempt from the royalty.

"Radio stations pay songwriters for the right to broadcast the music they have composed," Leahy said. "The work of songwriters is promoted by the airplay, but no one seriously questions the right of the songwriter to be paid for the use of his or her work. But the performing artist is not paid by the radio station. The time has come to end this inequity."

Berman said, "With the introduction of this bill, we have taken the first step to provide artists, musicians, and labels with compensation for their contribution to the music we hear over the radio."

The NAB was quick to respond, calling the bills "RIAA-backed performance-tax legislation."

"After decades of Ebenezer Scrooge-like exploitation of countless artists, RIAA and the foreign-owned record labels are singing a new holiday jingle to offset their failing business model," said NAB EVP Dennis Wharton. "NAB will aggressively oppose this brazen attempt to force America's hometown radio stations to subsidized companies that have profited enormously through the free promotion provided by radio airplay."
 
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