Friday, July 26, 2013

Congressman Plans Bill on Radio Royalties

Rep. Mel Watt
Rep. Mel Watt (D-N.C.) plans to introduce a bill before the August recess that would make radio broadcasters compensate musicians and recording artists for playing their songs over the air.

"It would recognize a performance right so [broadcasters] would have to sit down with artists and either work out a regime on their own or be subject to litigation about the value of what they're playing," Watt told The Hill.

While an older version of Watt's bill from 2009 made it mandatory for traditional AM/FM radio stations to pay royalties to musicians for the songs that they air, the lawmaker told The Hill that the new bill won’t go that far. The new version of the bill will simply establish that musicians have public performance rights to their work.

Broadcasters in the United States currently pay royalties only to music publishers and songwriters for terrestrial airplay, meaning when songs are played over the air on AM or FM radio. They don’t pay royalties to record companies or performing artists, under the argument that the promotional value those parties receive is sufficient compensation.

Only Internet and satellite radio stations, such as Pandora and SiriusXM, are required to pay royalties to the artists themselves.

Broadcasters are already starting to mobilize opposition to Watt's forthcoming measure. Dennis Wharton, a spokesman for the National Association of Broadcasters (NAB), warned in a statement that Watt's proposal would "kill jobs at America's hometown radio stations" and direct money "to offshore record labels."

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