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Congressman call on US music and radio industries to negotiate over royalty bill
By CMU Editorial | Published on Tuesday 3 November 2009
Two senior US congressmen have called on the music industry and American radio sector to negotiate a settlement on the big radio royalties debate.
As much previously reported, US terrestrial radio stations don’t currently pay recording royalties to record companies, based on the old argument that by playing songs they are giving the labels free promotion. However, as the record industry comes to rely more and more on royalty revenues as CD sales continue to decline, moves are afoot to alter US copyright law so that radio stations have to pay. Satellite and online radio services, which are not exempt from paying recording royalties, are also calling for a more level playing field in the wider radio sector.
As also previously reported, a bill that would introduce recording royalties for the radio sector has been making its way through the US legislative process for some time, and has now been approved by the judiciary committees of both houses of the US Congress, meaning it can now be voted on. That said, the radio sector is still lobbying hard in a bid to have the bill rejected.
Ahead of that, the chairs of both judiciary committees, Rep John Conyers Jr and Senator Patrick Leahy, have sent a letter to the musicFirst Coalition, which represents rights holders, and the National Association Of Broadcasters requesting that they “enter into negotiations before this legislation is considered on the floor of either House … the negotiated resolution will be considered by Congress as it takes up passage of this Act”. They propose negotiations are coordinated by the members of their committees, and that they take place in the latter half of this month.
Both sides have said they will take part in any such negotiations, though both stress their commitment for or against the bill. The NAB says there is a lot of support for its case in Congress, and that they expect the bill to be defeated.
