One hundred sixty-six members of the House have now signed on to support the Local Radio Freedom Act, a resolution introduced in October 2007 by Reps. Gene Green (D-TX) and Mike Conaway (R-TX).

The resolution reads, “Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over-the-air, or on any business for such public performance of sound recordings.” One hundred and five Republicans and 65 Democrats are now supporting the resolution.

Legislation that would impose performance royalties on broadcasters was introduced in the House by Reps. Howard Berman (D-CA) and Darrell Issa (D-CA) and in the Senate by Sens. Patrick Leahy (D-VT) and Orrin Hatch (R-UT) in December.

Tags: Broadcast, Broadcaster, Copyright, Issues, Legal, Legislation, Performance Rights, Radio, Record Industry

An article in the New York Times echoes CMR’s opinions that it’s the record labels, not the media that is the ultimate culprit behind the missing money in artists’ bank accounts.

After the settlement with Napster and others worth more than $270 million, the money has still not made its way from the labels to the makers of the music.

Read the Story

CMR Observation:

Told ya! It ain’t us that’s stealing. Take that, musicFIRST!

Tags: copyright, News, Performance, radio, rights, royalties, royalty

The NAB is using Valentine’s Day to call attention to the case it’s trying to make against performance royalties for broadcasters with an ad in Capitol Hill publications Roll Call, The Hill, and Politico highlighting the “love affair” between radio and the recording industry — as illustrated by quotes from label executives and recording artists.

The ad features a man and woman, both wearing headphones and kissing a radio. Under the headline “Love Affair,” the ad reads, “In honor of Valentine’s Day, we recognize the love affair between the recording industry and free, local radio.”

Beneath that are quotes from, among others, artist Alicia Keys, who at the recent Grammys thanked “every DJ, every radio guy, every promotions guy” as she accepted her award; RCA EVP/Promotion Richard Palmese, saying, “I’m a big, big fan of radio”; and MCA Records SVP Mark Wright, saying, “If a song’s not on the radio, it’ll never sell.”

The ad ends with the tag line “Preserve local radio. Fight the performance tax.” See it here (PDF link).

Tags: copyright, Performance, radio, rights, royalties, royalty

The age old relationship between recording companies and radio stations also received a plug from from Grammy-winner Alicia Keys, who used her acceptance speech to thank “every DJ, every radio guy…” (among others) who helped her along the path to success as a musician. Meanwhile, NAB reports that another group of lawmakers have signed on to the bipartisan Local Radio Freedom Act being championed in the House of Representatives by Gene Green (D-TX) and Mike Conaway (R-TX). The bill would head off attempts to impose performance royalties on broadcasters in recognition of the promotional value of free airplay of recorded music.

The newcomers, who bring the total number of backers to 148, include Charles Rangel (D-NY), Barbara Cubin (R-WY), Ginny Brown-Waite (R-FL), John Linder (R-GA), Spencer Bachus (R-AL), Jon C. Porter (R-NV), Greg Walden (R-OR), Rodney Alexander (R-LA), Zach Wamp (R-TN), Thelma D. Drake (R-VA), Henry Cuellar (D-TX), Roscoe G. Bartlett (R-MD), Bill Pascrell, Jr. (D-NJ), Marilyn N. Musgrave (R-CO), Silvestre Reyes (D-TX), Gary G. Miller (R-CA), Tim Holden (D-PA), Frank D. Lucas (R-OK), Jim Gerlach (R-PA), Jim Matheson (D-UT), Thaddeus G. McCotter (R-MI) and Devin Nunes (R-CA).

Tags: copyright, Performance, radio, rights, royalties, royalty

The National Football League’s legal threats against churches that planned on having its members view last weekend’s Super Bowl on large screen television sets has raised the ire of a diverse spectrum of critics.

The NFL had warned that if any church allowed a public viewing of the Super Bowl on a TV larger than 55” that it would consider legal action to protect its copyright interests. Churches across the nation responded by cancelling viewing of the sports event, many of them having offered it in the past as an evangelistic outreach to un-churched members of the community.

One of the major concerns of the NFL was the diluting effect that such gatherings have on the computation of the all-important ratings system for football’s preeminent event, and the corresponding multi-million dollar rates that advertisers can be charged to place their ads during the game.

from NRB Newsletter

CMR Observation

It says a lot when a copyright law will exempt a Sports Bar, and leave a loophole big enough to serve litigation to a non-profit outreach gathering. Do a mental comparison between that scenario and the current Performance Rights Act now under consideration.

Tags: Broadcast, Broadcaster, Copyright, Issues, Legal, Legislation, NRB, Performance Rights, Radio, Television, TV

This week, National Religious Broadcasters (NRB) leveled a concerted attack on a new regime currently being proposed in Congress, which would impose substantial new fees on terrestrial radio stations that play music. Politicians supporting the bill argue that music performers, who already collect royalties from record/CD sales and direct fees from live performances, should also collect a fee every time their “performance” airs on a radio station.

Last year, terrestrial radio stations were strapped with a new “performance” fee for web-streaming music on their websites. NRB, and other groups in opposition to this new performance fee for music air-play, warn that it could force radio stations to either close down or to cut-back staffing and programming drastically.

In a letter delivered this week to key Members of the Senate, Dr. Frank Wright, NRB’s President and CEO, says the new Congressional proposal (S. 2500 & H.R. 4789) is “unwise, unfair, and borders on the irresponsible.” In the past, Congress reviewed this situation of music play on radio and repeatedly refused to impose a “performance” fee because it noted the mutually beneficial relationship between radio and musical performers: while radio paid no royalties to the performers themselves, it has been the chief means of promoting record and CD sales, which do place money in the pockets of performers.

For the last half century radio has been paying royalties to music composers and songwriters for the music it plays. Further, the Congressional bill unfairly favors, in rate-setting, public radio broadcasters over non-profit religious broadcasters. Last week Dr. Wright and Government Relations Director Bob Powers began the first of a series of meetings with Senate leadership, urging opposition to the music performance bills.

A written set of “bullet point” arguments by Craig Parshall, Senior Vice President and General Counsel, is being delivered to key members of Congress that delineates NRB’s position on the issue.

CMR Observation

We’re glad the NRB has stepped up their role in this battle. The bill appears to be aimed at commercial broadcasters, and the proposals concerning Public and non-commercial broadcasters seem to be there for no other reason than to keep those players out of the fight. When record promoters stop calling our Music Directors, we’ll start believing radio has lost its edge as a promotional venue.

Tags: Berman, Broadcast, Broadcaster, Copyright, Issues, Legal, Legislation, Performance Rights, Radio, Record Industry, NRB

The retirement of Rep. Tom Lantos (D-CA) due to illness may open up the top slot at the House Foreign Affairs Committee for Howard L. Berman (D-CA), a move which would move him out of the chairs at Judiciary’s Copyright Subcommittee, where he has been a big advocate for producers and artists over the interests of broadcasters. Lantos, who has cancer, will be retiring at the end of the 110th Congress. Introducing performance fees for music played over the air has been an issue of late, but at a recent hearing in the Senate Judiciary Committee, some senators noted that it was not yet a front-burner issue.

CMR OBSERVATION:

As the issue of Performance Rights isn’t necessarily a matter of party affiliation, it isn’t likely to make its way to the forefront during an election year. If there is any change to the makeup of the Judiciary’s Copyright Subcommittee, however, it will certainly be felt as the issue resurfaces to pit one industry against another. Radio and Record folks will have to quietly disagree until then.

Tags: Berman, Broadcast, Broadcaster, Copyright, Issues, Legal, Legislation, Performance Rights, Radio, Record Industry

In a dramatic demonstration of the economic toll of digital piracy on the music industry, THE LOS ANGELES TIMES reports that EMI is still expected to trim more than a quarter of the LONDON-based company’s employees and radically alter the way it does business to further cut costs.

Two executives inside EMI told THE TIMES that EMI will become the first major label to eliminate the large advances that customarily are paid in the industry to proven artists. For instance, British pop singer ROBBIE WILLIAMS reportedly got an advance worth $150 million when he signed with EMI in 2002. His future advances could be in jeopardy because of his disappointing sales.

EMI instead will pay retroactive compensation based on how well a recording sells, one of the executives said.

The approach will likely take the record company out of the running for top acts, which can negotiate bigger advances from UNIVERSAL MUSIC GROUP, SONY BMG or WARNER MUSIC GROUP, the executives said. A severe cutback in advances means that “you’re not competitive anymore for A-list talent. You’re asking to be outbid,” the source said.

HANDS will decrease marketing spending but invest more in artist development, the two executives said. Striking deals with smaller bands that sell fewer albums could be more practical today, at a time when well-established bands are less dependent on the marketing muscle of a major label.

“The status quo hasn’t exactly worked,” the other executive said. “We can put the emphasis on a good-quality record that doesn’t sell a million, but a profitable quarter-million.”

Artist Manager Meetings Set

In keeping with his open style about the future, HANDS has invited artist managers to a meeting tomorrow (1/16) in NEW YORK, NASHVILLE on THURSDAY (1/17), and in LOS ANGELES next THURSDAY (1/24), to keep them abreast of the new structure and how it will affect their artists.

CMR OBSERVATION:

What a novel concept: “…put the emphasis on a good-quality record.” Given the excessive advances previously handed over to artists based on what record sales “might” do, paying retroactive commissions sounds a lot smarter than levying new fees on radio when they play an artist’s music, which is done to the promotional benefit of everyone involved. Makes us wonder about their next dramatic move - may we suggest realistic salaries?

Tags: copyright, News, Performance, radio, rights, royalties, royalty

A new royalty form is available from SoundExchange for 2008.

Law firm Fletcher, Heald & Hildreth reports on its CommLaw Blog: “Whereas in the past, commercial webcasters could choose between calculating monthly royalty payments to SoundExchange for digital performance of sound recordings on either an aggregate tuning hour or a per performance basis, only the latter will be allowed for January 2008 and beyond.”

“The form filed in previous years to notify SoundExchange of the elected method of calculation will obviously not be utilized; instead a commercial webcaster’s only choice is whether to complete the Statement of Account form in Excel or PDF format,” FHH continued. Noncommercial webcasters still have their own form.

“Is this a big deal? Based on conversations with our clients, the answer appears clearly to be yes,” the law firm stated.

“Most broadcast radio stations offering an Internet simulcast and/or other streams of music online have used the aggregate tuning hour method to calculate royalty payments. It is simply an easier calculation to make, as it requires only counting the number of listeners per hour. The per performance option requires the webcaster to know exactly how many listeners heard each song that was streamed.”

The first statements of account are required on March 16, and webcasters must now be employing software or other means of making the per performance calculation.

Tags: christian, copyright, noncommercial, Performance, radio, rights, royalties, royalty, streaming, webcast

In sympathetic response to the cries of the Music First Coalition that radio airplay has hurt rather than helped musical performers, Christian Listening Network stations will no longer air music recorded by artists listed on the Coalition’s website.

Following the December 18 introduction of legislation titled “Performance Rights Act”, the stations’ Music Directors have been instructed to cull artists from playlists whose names appear on the Music First Coalition’s website as Founding Artists.

Christian Listening Network’s General Manager Dan DeBruler is among the outspoken critics of the legislation, calling it a “…tax that cannot be fairly distributed” among artists whose music actually receives airplay. “The proponents of the legislation implied it to be a performance royalty during its formation, then added a flat-rate fee for small and noncommercial radio stations when it was introduced to Congress.”

According to DeBruler, “Our Music Directors are diligent in selecting the best songs week after week,” adding “…it is illegal for US radio stations to accept direct compensation in any form in exchange for airplay. We play and promote the best songs and artists, then watch as they climb the charts. The result is increased record sales and improved ticket sales at live performances.”

“If performing artists believe uncompensated airplay is hurting them to the extent they need legislation to stop it, we’ll save them the trouble,” DeBruler said of the ban.

From DeBruler’s memo to Music Directors: Please continue to work closely with your recording industry representatives. Selecting and promoting top music is still in the best interest of our listeners and our industry. If the Performance Rights Act becomes law, we will negotiate individual fees with the artists whose music we play to ensure fair compensation.

Dan DeBruler manages three Christian Listening Network stations in North Carolina: WCLN-FM, WGQR-FM, WBLA-AM.