Senate Judiciary Holds Hearing on Performance Rights Act

Authored by Mark Hefflinger on August 6, 2009 - 8:52am.

Washington - The Senate Judiciary Committee heard testimony from artists, record labels and broadcasters earlier this week on whether terrestrial radio stations should have to royalties to performers on records, instead of just songwriters. Artists including Sheila E, Sheryl Crow, Herbie Hancock and will.i.am, along with record labels represented by the Recording Industry Association of America (RIAA), argued in favor of additional royalty payments to performers, while radio broadcasters like Clear Channel argued they would cause financial hardship.

"Radio is the only part of the music business where our work is used without permission or compensation," Sheila E testified, according to Dow Jones' coverage.

Broadcasters of music over satellite, cable TV and the Internet all pay a performance royalty, as do most radio stations in other countries.

In addition to financial hardship, broadcasters also touted the "free" publicity that artists receive when their songs are played on the radio.

"We strongly believe that local radio stations provide compensation to record labels and artists today. The artist is 'paid' with free advertising and free exposure every time a radio station plays their music," Steve Newberry, joint board chairman of the National Association of Broadcasters (NAB), told the panel, according to FMQB.com's coverage.

A companion Performance Rights Act bill in the House has already been approved by the House Judiciary Committee, but has yet to be brought before the full House.

Last week, 22 House Democrats sent a letter to Speaker Nancy Pelosi, asking that the bill not be brought up for a vote.

The Performance Rights Act is sponsored in the House by Judiciary Committee chairman John Conyers (D-Mich.) and Foreign Affairs Committee chairman Howard Berman (D-Calif.), and in the Senate by Judiciary Committee chairman Patrick Leahy (D-Vt.), Orrin Hatch (R-Utah) and Dianne Feinstein (D-Calif.).

http://snipurl.com/ovxvk (Ars Technica)

http://snipurl.com/owvec (Mediaweek)

http://www.fmqb.com/article.asp?id=1442195