This will kill an already struggling radio industry.  Leave it to Congress
to crush our economy even further.
Steve

>From AllAccess.com:

House Subcommittee Passes Royalty Bill, NAB Girds For War On House Floor

The House Judiciary Subcommittee on Courts, the Internet and Intellectual
Property met TODAY and approved a bill requiring radio stations to pay
royalties to performers and record labels. The vote came while
Representatives, often of the same party, were sending letters to their
colleagues , advocating one side of this issue or the other.

Meanwhile, the NAB put the best spin on the situation, by signifying its
intention to wage all-out war once the vote come to the full House floor.
EVP DENNIS WHARTON released the following statement:

"Today's vote comes as a complete non-surprise, given the House IP
Subcommittee's history of support for the RIAA-backed tax on local radio
stations. Despite TODAY's action, there remains broad bipartisan resistance
to the RIAA tax from members of Congress who question whether a punitive fee
on America's hometown radio stations should be used to bail out the failing
business model of foreign-owned record labels."

*Cue The Happy People
*
The MUSICFIRST COALITION's Exec. Dir. DOYLE BARTLETT was pleased with the
House vote.  "Subcommittee passage of H.R. 4789 is a major victory for
America's artists and musicians and a major triumph for fundamental
fairness. We applaud Representatives BERMAN and ISSA and the members of the
subcommittee for their hard work on this bill. With their leadership and
support we have made significant progress toward creating a fair performance
right on radio. But we still have a long way to go."

"A loophole in the law lets AM and FM music radio stations earn $16 billion
a year is advertising revenue without compensating the artists and musicians
who bring music to life and listeners' ears to the radio dial, he continued.
"It's not right, it's not fair and we are going to make sure it is changed.
All other music platforms – satellite radio, Internet webcasts, and cable
television music stations – pay artists and musicians to use their music.
It's only fair that terrestrial radio be held to the same standards."

Sen. PATRICK lEAHY (D-VT), Chairman of the Senate Judiciary Committee, which
will take up the bill next, gave it his full endorsement: "Members of the
House Judiciary Committee today took the first steps in moving forward
legislation to provide fair performance rights to artists. Since I joined
with Sen. HATCH and our friends in the House last year to introduce
performance rights legislation, I have heard from both performers and local
radio stations about this legislation. The House Subcommittee's mark today
has continued the debate on how best to protect the rights of performers and
songwriters, and the needs of noncommercial and small commercial radio
stations, like many stations in VERMONT. I hope the Judiciary Committee
might be able to turn its attention to this issue before the end of the
year."

*Dueling Letters*

Yesterday, Reps. GENE GREEN (D-TX) and MIKE CONAWAY (R-TX) circulated a
letter to colleagues noting the momentum for the Local Radio Freedom Act,
which staunchly opposes a performance tax. The letter, which urges
additional support for the resolution, cites the official co-sponsor count
according to the Library of Congress, 221, a figure that includes 219 active
members of House of Representatives.

A companion resolution, S. Con. Res. 82, has been introduced in the Senate
and is supported by 13 senators. Called The Local Radio Freedom Act, it
reads "Congress should not impose any new performance fee, tax, royalty, or
other charge relating to the public performance of sound recordings on a
local radio station for broadcasting sound recordings over the air, or on
any business for such public performance of sound recordings."

At the same time, Reps. MARSHA BLACKBURN (R-TN), DARRELL ISSA (R-CA) and
JOHN SHADEGG (R-AZ) sent their own letter to fellow Republicans, urging
support of the royalty bill, which is sponsored by a Democrat, Judiciary
Subcommittee on Courts, the Internet and Intellectual Property Chairman
HOWARD BERMAN.

The NAB, which is fighting the measure, said YESTERDAY (NET NEWS
6/25<http://www.allaccess.com/site/netNews/story.php?bs=sk&ng=industryTools&ag=172&storyID=42156>),
that it had secured support from a majority of House members on a resolution
opposing the bill. But CNN reports the recording industry, which stands to
gain millions from the bill, isn't giving up.

"The resolution was introduced before the bill" was drafted, said NATIONAL
ACADEMY OF RECORDING ARTS & SCIENCES VP DARYL FRIEDMAN. "All of those things
ended up being accommodated in the bill," he said, arguing that those
changes could give some members leeway to vote for both proposals.
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