Thursday, November 5, 2009

Radio Royalty Critics Want In On Talks

Texas Reps. Gene Green, a Democrat, and Mike Conaway, a Republican, wrote to House Judiciary Chairman John Conyers on Wednesday asking to be included in any discussions regarding legislation that would force AM and FM radio stations to pay a new fee to performers and record labels. Conyers and Senate Judiciary Chairman Patrick Leahy have requested that music and broadcasting executives come together on Capitol Hill Nov. 17 to begin two weeks of negotiations.

Green and Conaway sponsored a resolution opposing the bill and it has garnered more than 250 backers. Sen. Blanche Lincoln, D-Ark., introduced an identical proposal. "We have serious concerns that legislation imposing a new royalty on local radio stations, particularly in this economic climate, will be tremendously harmful to radio stations and their employees, local communities that rely on radio, and recipients, such as charities and non-profits, that receive free airtime for their causes," Green and Conaway wrote.

Conyers and Leahy sent a letter dated Oct. 30 that called for negotiations to commence. Recipients were former Sen. Gordon Smith, R-Ore., the new head of the National Association of Broadcasters, NAB Board Chairman Steve Newberry and MusicFIRST Coalition Executive Director Jennifer Bendall. "With your good faith participation, we are confident that an acceptable and mutually beneficial resolution to this long-standing disagreement can be found," the letter stated.

MusicFirst spokesman Marty Machowsky argued Wednesday that the current situation is indefensible. "Radio stations earn billions every year without compensating the artists and musicians who bring music to life and listeners' ears to the radio dial," he said. NAB has argued that the legislation could bankrupt smaller stations, limit diversity on the airwaves, and ultimately harm consumers.