For 80 years, terrestrial radio stations have legally played music without paying royalties on the principle that listeners who hear a song they like will go buy it. The record industry, facing declining revenues, wants to reverse that law and, accordingly, the RIAA has declared that radio stations are pirates because they don't pay those royalties.

The National Association of Broadcasters (NAB) has been opposing this initiative and has been seeking the support of members of Congress to block any legislation that would change the status quo. The counter comes in the form of the Local Radio Freedom Act which now has the majority of the House of Representatives supporting it.

On Tuesday, NAB Executive Vice President Dennis Wharton referring to the majority House support said, "Today's announcement sends a powerful message to foreign-owned record labels that Congress is not falling for their bogus campaign to blame local radio stations for their financial woes....

"NAB thanks those members of Congress who appreciate the fact that free radio airplay of music generates untold millions into the wallets of performers and record labels. We will continue to educate policymakers on the devastating impact this RIAA tax would have on America's hometown radio stations."

Mr. Wharton has pointed out the key objections to any royalty legislation. First, small hometown radio stations cannot afford the royalty fees which, once enacted, are bound to rise and put them out of business. More importantly, however, the move by the RIAA is seen by the NAB as a funds transfer from local radio stations to foreign owned music labels who are desperate to bring a halt to declining music revenues.

The RIAA argues that everyone else who broadcasts music to the public pays royalties, so the local radio stations should as well. The NAB argues that the free publicity music gets on the radio generates compensating revenues estimated at US$2.4B a year.

"It's a form of piracy, if you will, but not in the classic sense as we think of it," said Martin Machowsky, a spokesperson for musicFirst, a coalition that seeks fairness in radio. "Nobody listens to the radio for the commercials."

musicFirst has links that inform radio listeners about the royalty issues.