Music Groups Merge To Fight Broadcasters
From CongressDaily's AM Edition:
Two high-profile trade groups that represent music industry interests on Capitol Hill are joining forces in a no-holds-barred battle against the National Association of Broadcasters as the 111th Congress begins. The Recording Artists' Coalition, which gained attention for its superstar supporters like Christina Aguilera, Don Henley and Madonna, is being swallowed by the Recording Academy, the group best known for producing the annual Grammy Awards and Grammys on the Hill educational program, officials told CongressDaily.
A bill sponsored last year by House Judiciary Chairman John Conyers passed a key subcommittee and a companion measure was introduced by Senate Judiciary Chairman Patrick Leahy. Broadcasters called the proposal "a tax on local radio" and mounted a campaign in opposition. A resolution by Texas Reps. Gene Green, a Democrat, and Republican Mike Conaway, garnered over 200 co-sponsors. Read the full story in CongressDaily (subscription required).
Tech Daily Dose Extra: Daryl Friedman, the Recording Academy's top lobbyist, said there is plenty more on his group's agenda on Capitol Hill. A tax bill that passed years ago in the wake of the Enron scandal but took effect this year to limit a loophole in executive compensation could negatively impact musicians who get advanced payment for their work, he said. It is a common practice in the music business to pay a portion of an artist's fee before the end of a contract. The sporting industry is also worried about the tax law change and will likely team up with Friedman's group to push for a legislative correction.
Furthermore, the Academy will continue to monitor the FCC's opening up of "white spaces" (vacant television airwaves that will be used to deliver new wireless innovations) because some fear that the change could interfere with wireless microphones performers use on stage. Friedman's group may also dip a toe in the so-called "network neutrality" debate that is sure to return in the 111th Congress. While his members are divided on the issue of how Internet services handle content, the topic is of interest to them all, he said. "I'm not sure how the Recording Academy will come down on it," Friedman said, noting that his organization was largely absent from the debate last year.
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