Even though broadcasters are clearly winning in the U.S. House of Representatives in their efforts to prevent the Performance Rights Act (H.R. 848/S.379 – also known as performance tax legislation) from coming to the floor for a vote, House Judiciary Chairman John Conyers (D-MI) and Senate Judiciary Chairman Patrick Leahy (D-VT) are urging broadcasters to join with them to negotiate on fees for songs played on radio. Chairman Conyers and Chairman Leahy sent a joint letter to the National Association of Broadcasters (NAB) and the MusicFIRST Coalition, asking that everyone sit down together and negotiate rates for music airplay.

 
Russ Hauth, Sr. Vice President at Salem Communications and Director of the NRB Music License Committee (NRBMLC), said in response to the news: “Even though the Performance Rights Act was approved by both the House and Senate Judiciary Committees, Chairman Conyers commissioned a Government Accountability Office (GAO) economic impact study shortly after it was reported out [of his committee]. Unquestionably, part of the impetus for the study came from a vocal Judiciary Committee Member, Rep. Maxine Waters (D-CA). She is a Los Angeles Democrat who voted “NO” on the bill in Committee, warning Conyers that ‘unintended but devastating consequences’ could result if the bill were passed as written.”

At this time, 252 members in the House and 27 Senators are co-sponsors of the Supporting Local Radio Freedom Act Resolution (H.Con.Res.49/S.Con.Res.14), a different piece of legislation that opposes new performance fees. Hauth points out that the success of this resolution is likely the very reason that MusicFIRST is pushing hard for a negotiated settlement, in order to circumvent both the GAO study (expected to be released in early 2010) and the full Congressional process.

NRB remains fully opposed to any new music fees placed upon our broadcasters. We believe that there is no reason to negotiate until the music industry acknowledges the value of free airplay on local radio stations.