Commerce Dept. Backs Radio Royalty Bill

Agencies, Intellectual Property
Thursday, April 1, 2010 5:44 PM
Reprinted from www.nationaljournal.com

By Sara Jerome

The Commerce Department voiced support Thursday for legislation that would require AM and FM radio stations to pay performers a fee when they air their songs.

"In today's digital music marketplace, where U.S. performers and record labels are facing both unprecedented challenges and opportunities, the department believes that providing [incentives for artists and recording companies] is more important than ever," Commerce Department General Counsel Cameron Kerry wrote in a letter to Senate Judiciary Chairman Patrick Leahy, D-Vt.

Performance rights legislation was approved by both the House and Senate Judiciary committees but remains fiercely opposed by broadcasters. Music industry groups argue that musicians are paid by satellite and Webcasters for playing their songs and AM and FM radio stations should have to pay as well.

"The Obama administration is the latest, but not the first to support congressional efforts to close the loophole in copyright law that allows radio stations to earn billions without compensating the artists, musicians and rights holders who bring music to life and listeners' ears to the radio dial," said Martin Machowsky, a spokesman for the MusicFIRST Coalition, which represents a dozen music industry groups. "This is a great momentum builder for our fight to win fair pay for airplay for American artists and musicians in the U.S. and around the world."

Broadcasters say performers benefit from the exposure they receive from free radio airplay and argue the fees would place a big financial burden on local stations that are still struggling from the weak economy.

"We're disappointed the Commerce Department would embrace legislation that would kill jobs in the U.S. and send hundreds of millions of dollars to foreign record labels that have historically exploited artists whose careers were nurtured by American radio stations," National Association of Broadcasters spokesman Dennis Wharton said in a statement. He noted, however, the support broadcasters have from 260 House members and 27 U.S. senators who have signed on to a resolution opposing the performance rights legislation.