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News
Congress Formally Proposes Performance Royalties for Radio Stations
Tuesday, December 18th, 2007 at 3:00 PM - by John Martellaro
Members of the U.S. Congress have entered the battle over music royalties and have introduced legislation to require terrestrial radio stations to pay performance royalties, according to Forbes on Thursday. The NAB vehemently opposes it.
The legislation was introduced in the Senate by Sens. Patrick Leahy (D-Vt.) and Orrin Hatch (R-Utah), and in the House by Reps. Howard Berman (D-Calif.) and Darrell Issa (R-Calif.),
Satellite radio stations, Internet radio stations, and terrestrial radio stations in other countries pay this additional performance royalty. However, U.S. terrestrial radio stations have long been exempt with the idea that listeners, hearing music on the radio, would then go purchase songs they liked.
The move is seen as a way for the music labels to bolster their declining revenues.
The National Association of Broadcasters, which represents the the U.S. radio stations, came out swinging. NAB Executive Vice President for Media Relations Dennis Wharton noted that there is other legislation pending which would bar the very same royalties.
"After decades of Ebenezer Scrooge-like exploitation of countless artists, [the Recording Industry Association of America] and the foreign-owned record labels are singing a new holiday jingle to offset their failing business model," Wharton said in a statement Tuesday. "NAB will aggressively oppose this brazen attempt to force Americas hometown radio stations to subsidize companies that have profited enormously through the free promotion provided by radio airplay," Mr, Wharton said.
In the end, it may all depend on which organizations and how many citizens side up with each legislative camp.
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