Performance Rights Act in US Senate

09:52 | Thursday February 5, 2009

The bill, which is aimed to bring the US in line with almost every other nation in the world, will end an archaic provision of US 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.

Jennifer Bendall, executive director of musicFIRST, the coalition which has lobbied for years for the introduction of the Performance Rights Act says, “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.

“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.”

However, the move is opposed by National Association of Broadcasters president and CEO David Rehr. He is urging lawmakers to oppose the legislation calling it a "performance fee" to the recording industry for music aired free on the radio.

A measure opposing the Congressional action is expected to be introduced shortly. Rehr says, "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.”

He adds, "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."

The bipartisan bill was introduced in the Senate 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).

The major provisions of the Performance Rights Act are:

• 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.

o Small commercial stations would pay only $5,000 per year;

o Noncommercial stations such as NPR and college radio stations would pay only $1,000 per year;

o Stations that make only incidental uses of music, such as “talk radio” stations, would not pay for that music; and

o Religious services that are broadcast on radio would be completely exempt.