Senate Judiciary Approves Performance Rights Act

An effort to pass a law requiring that broadcasters pay performers when their music is played over the air cleared another hurdle on Thursday as the legislation gained approval in the Senate Judiciary Committee.

The House Judiciary Committee passed similar legislation in May, although it is unclear when the legislation will come to a floor vote in either chamber. The Senate Judiciary Committee reported the legislation in a voice vote, and senators indicated that they wanted to continue to work on a few items to refine the bill.

The legislation has triggered a bitter fight that has pitted artists and the recording industry, backed by a star-studded list of lobbying performers like Tony Bennett, Bono and Sheryl Crow, against broadcasters, who have not minced words in stating their opposition over the airwaves. Each side has amassed a bipartisan list of lawmakers to make their case.

Jennifer Bendall, executive director of the MusicFIRST Coalition, which is leading the lobbying effort in support of the legislation, said in a statement, “We are making unprecedented progress.  Two congressional committees have now approved a bill to create a fair performance right on radio. We ask broadcasters and the new leadership at the NAB to join with us.  Together we can create a performance right on radio that is fair to artists, musicians and rights holders, fair to other radio platforms that pay a performance royalty, and fair to AM and FM music radio.”

The National Assn. of Broadcasters has been waging a strong campaign to defeat the legislation, and today unveiled the results of a poll it conducted showing that 75% of Americans do not support a "performance fee." The NAB also says that 251 House lawmakers and 26 Senators oppose a "performance tax" on local radio stations. (Both sides have been in a dispute over the use of the term "tax" to characterize the legislation.)

Artists currently are not compensated when their songs are played over the airwaves, but songwriters are. Their efforts to pass such a bill extends back generations, and the victory in the Judiciary Committee is a significant step forward as previous efforts have stalled. Broadcasters argue that such payments will be devastating to stations already struggling in a sluggish ad market, and that it ignores the promotional value that free radio airplay provides.

Senate Judiciary Committee chairman Patrick Leahy (D-Vt.), who introduced the bill in February along with Sen. Orrin Hatch (R-Utah), said in a statement, “We will still have a lot of work to do and I strongly encourage the National Association of Broadcasters to work with us, work with the artists and the music industry, and help us reach an agreement that protects broadcasters while ensuring that artists are compensated fairly.”

Leahy introduced an amendment that allows smaller and noncommercial radio stations to pay a flat fee based on their gross revnues, an effort to address concerns that the Performance Rights Act would force some broadcasters off the air or into the red.

Leahy's amendment also includes provisions to ensure that the Performance Rights Act doesn't cut into the existing royalties for songwriters, as well as another provision to make sure that artists "actually receive their share of royalties when their music is played." Record labels also would receive a share of the royalties under the bill.

Leahy said, "Record labels often hold the property right in the sound recording, and they deserve to be compensated, but we all want to ensure that the artists receive their compensation, too.  I commend the recording industry for working with us on this issue to protect the artists whose music we all love to hear."