Senate Judiciary Committee OKs Performance Rights Act
The Performance Rights Act (S. 379) was approved by the Senate Judiciary Committee today. This legislation ensures that for the first time musicians will receive royalties when their songs are played over terrestrial AM/FM radio, just as they now receive royalties when their songs are played on satellite, internet, and cable radio. Both the House and the Senate now have a bill that can be voted on at any time. However, this is contingent on a very crowded Congressional calendar.
Read more about this development below:
JUDICIARY: PANEL APPROVES BILLS ON ROYALTIES, GENERICS
By Andrew Noyes
The Senate Judiciary Committee today approved legislation by voice vote
that would require AM and FM radio to pay fees to performers and record
labels, although small and minority-owned radio stations would be afforded
certain carve-outs.
The amended radio bill, which has been opposed by the National Association
of Broadcasters, would require stations earning less than $50,000 to pay
$100 per year; those making $50,000 to $100,000 to pay $500; and stations
grossing $100,000 to $500,000 to pay $2,500. Stations earning $500,000 to
$1.25 million would pay $5,000, and stations grossing more than that would
pay a per-song rate.
The legislation makes special accommodations for songwriters and includes
language to standardize rates across music platforms. It also includes a
three-year fee delay for broadcasters earning less than $5 million annually
and a one-year delay for those making more.
The panel rejected an amendment from Sen. John Cornyn, R-Texas, that would
have put off the effective date until the FCC could gauge whether the new
costs would diminish diversity on the airwaves. He also argued the measure
would "kill jobs."
Sens. Dianne Feinstein, D-Calif., Orrin Hatch, R-Utah, and Senate
Judiciary Chairman Patrick Leahy said the changes, which are similar to
those made to a House bill now awaiting floor consideration, address many
of the concerns raised. But Leahy pledged to continue to work with others
seeking further modifications, such as Sen. Amy Klobuchar, D-Minn., who
said the bill still needs to be tweaked.
Leahy also reiterated today the NAB should "end the stonewalling" and work
with lawmakers and the music industry to craft a compromise. Judiciary
ranking member Jeff Sessions also supported seeking compromise because the
bill is "not something I'm sold on yet." But Hatch said the statutory
change is "a matter of logic, a matter of law, a matter of decency, and a
matter of doing what's right."
The panel also passed a bill, 12-7, that would prevent pharmaceutical
companies from making deals with other drug companies to halt production of
generic drugs.
The generics bill, sponsored by Judiciary Antitrust Subcommittee Chairman
Herb Kohl, D-Wis., passed after lawmakers modified its penalties and added
a delay in the effective date. The committee previously softened the
original bill's total ban on pacts to stop generic drug competition. But
Hatch said the measure still needs work before he can support it. Cornyn,
Sessions, Minority Whip Kyl, and Sens. Arlen Specter, D-Pa., Tom Coburn,
R-Okla., and Lindsey Graham, R-S.C. also voted against the bill.
http://www.nationaljournal.com/congressdaily/cdp_20091015_1347.php
