Legislative Agenda

Reforming Radio Royalties: Section 114 of the Copyright Act

Current law requires the Copyright Royalty Board to employ different rate-setting standards when determining sound recording royalties for cable, satellite, and Internet radio. Cable and satellite radio rates are established under a standard that has historically resulted in royalties equaling 6-8% of radio services’ revenue. Internet radio royalty rates, in comparison, are set under a standard that has resulted in royalties equaling more than 47% of revenue, and often more than 100% of revenue. Alternatively, broadcast (AM/FM) radio is exempted from paying any royalties at all.

DiMA Position:

Royalty rates for the various radio platforms should be established using one common standard. Section 114 of the Copyright Act should be modified and updated to ensure that innovative technologies are not disadvantaged as they provide consumers with new and more enjoyable listening experiences. 801(b) should be adopted as the global standard.

House Judiciary Committee Approves the Webcaster Settlement Act and Performance Rights Bill

House Judiciary Committee Hearing on icon H.R. 848, the “Performance Rights Act of 2009.”

List of Witnesses
1. Billy Corgan, Vocalist for the Smashing Pumpkins;
2. Mitch Bainwol, CEO of the Recording Industry Association of America;
3. Paul Almeida, President of the Department for Professional Employees of the AFL-CIO;
4. Lawrence Patrick, President of Patrick Communications;
5. Stan Liebowitz, Professor of Managerial Economics at the University of Texas; and
6. Steve Newberry, the Chairman of the Radio Board for the National Association of Broadcasters.
Introduction of S. 379, the “Performance Rights Act of 2009.”
801 (b) in detail.
1. The Reintroduction of Performance Rights Legislation in the 111^th Congress
2. Sound Recording Performance Royalty Rates and Standards
3. Fordham Intellectual Property, Media and Entertainment Law Journal, Autumn 2008, Comments: 257 WE INTERRUPT THIS BROADCAST: WILL THE COPYRIGHT ROYALTY BOARD'S MARCH 2007 RATE DETERMINATION PROCEEDINGS PULL THE PLUG ON INTERNET RADIO?
Listening to Internet Radio Increased 37% Last Year

Reforming Music Licensing: Section 115 of the Copyright Act

Congress created a compulsory license for musical compositions in 1909 to address the needs of the player piano industry. The law was updated to support music and recording industry progress, and for many decades it reasonably governed relationships between record companies and music publishers with regard to vinyl records and CDs. Recently, however, innovative online music services have sought to utilize this government-provided license, but have been frustrated by its limitations and rules which were developed for historical business models and now need to be modernized. All music industry stakeholders – songwriters, publishers, record companies and online services – as well as the Register of Copyrights – agree that updating Section 115 is necessary if online music services are to grow to their potential, and compete most effectively against pirate networks.

DiMA Position:

Congress should work to clarify the scope of the compulsory license in the current digital environment, to make it administratively simple, while being responsive to the needs of online consumers as well as the interests of copyright owners.

H.R. 5553, the “Section 115 Reform Act of 2006”
On March, 22, 2007, the House Judiciary Subcommittee on Courts , the Internet and Intellectual Property held a hearing on “Reforming Section 115 of the Copyright Act for the Digital Age.”
Mary Beth Peters Congressional Testimony
Additional Resources
Jon Potter Testimony

Enacting Important Orphan Works Legislation:

The numerous challenges that publishers, film producers, universities, private citizens, and digital media companies have had in managing risk and liability when a copyright owner cannot be identified or located has been well documented. Most of these challenges are the direct byproduct of three decades of change that has slowly relaxed the obligations of copyright owners to publicly assert and actively manage their rights.

DiMA Position:

Congress should authorize good-faith users of copyrighted material to utilize such content in cases where they cannot locate the owner after conducting a reasonably diligent search.

H.R. 5889, the “Orphan Works Act of 2008”
S. 2913, the “Shawn Bentley Orphan Works Act of 2008”
On March, 13, 2008, the House Judiciary Subcommittee on Courts , the Internet and Intellectual Property held a hearing on “Promoting the Use of Oprhan Works: Balancing the Interests of Copyright Owners and Users.” Note: the following link will take you to the list of witnesses where you can download their testimony. It also provides a hearing transcript (which includes the personal statements of congressional members) http://judiciary.house.gov/hearings/hear_031308.html

Promoting Broadband Growth by Ensuring Unfettered Access to Consumers:

The principles underlying the concept of “common carriage” – serving all customers without discrimination – is not new. They have been part of the fabric of general purpose communications and transport networks for a very long time. Indeed, for centuries common carriage principles have played an important role in the basic infrastructure services of transportation and communications. In exchange for not holding the providers of these services liable for the content of the communications they carry, we have required these services to provide nondiscriminatory assistance to all of its customers who are willing to pay.

DiMA Position:

Congress should work to ensure that similar principles apply to the Internet. The Internet should remain open, fast, and accessible to all Americans; and its use should not tend to favor one particular brand or type of content over another.