Musicians demand pay for radio play

Billy Corgan, vocalist and guitarist of the music group Smashing Pumpkins, spoke today before the House Judiciary Committee on behalf of musicFIRST, a coalition of musicians pushing for compensation when their sound recordings are broadcasted. As the law stands, the song writer receives compensation when it is played on AM/FM radio, but the performer does not. Corgan argued, "The decision behind this long-held inequity stems back to 1909 when radio was in its infancy... the old-fashioned radio business has held onto this exemption for over 80 years -- a law made in a bygone era for a set of reasons long past. This landmark exemption however stripped performers of their right to a free market evaluation of the value of their recorded works."

The committee was split on the issue. Chairman Congressman John Conyers (D- MI) spoke strongly in support bill HR 848 which would legally mandate artist compensation for radio broadcasts. He pointed out that only four developed nations in the world do not pay musicians: The US, Iran, North Korea, and China. This, he stated, is not something we should be proud of. He predicted that sooner or later, HR 848 will become a law, and "the sooner, the better."

However, dissenting views were expressed by other members of the committee. Congressman Bob Goodlatte (R-VA) pointed out how radio stations have seen steep decline in revenue during the current economic downturn, and the forecast is that the situation will only get worse. Goodlatte stated that it would be detrimental to apply another fee to small radio stations, in fact, this bill may be "the last straw" which causes small stations to close.

The core of the debate came down to which side receives unfair benefits in this situation; Whether musicians benefit from promotion due to radio play, or radio stations benefit in terms of listenership from playing music. Judiciary Committee ranking member Lamar Smith (R- TX) stated his proposition, "What I propose is that both parties agree to have a third-party entity conduct an objective study of the economic impact of royalty payments on performing artists and radio stations. Stakeholders would offer issues to be evaluated. And at least there will be some quantitative analysis to help mold legislation."

Major hurdles remain in patent reform legislation

Senators Leahy (D-Vt.) and Hatch (R-Utah), along with Congressmen Conyers (D-Mich.) and Smith (R-Tex.), today announced the introduction of major patent reform legislation in both chambers of Congress with bipartisan support. The House and Senate Judiciary Committees have been working on patent reform for the last 4 years, and in the last Congress the House was able to pass the legislation, while it stalled in the Senate. The Congressmen today all expressed hope that the legislation would become law this time around, though all admitted there were major issues to be worked out.

Last time the Senate took up the bill, debate deadlocked over how to reform damage calculations and the handling of inequitable conduct, which occurs when a party tries to enforce a patent it obtained without being completely honest with the U.S. Patent and Trademark Office. While these disagreements are large, all parties today expressed hope. Senator Leahy, asked what had changed since the last time the Senate took up the bill, responded that there is "urgency" to get the bill through. The Senators and Congressmen linked the bill to the economic downturn, saying that reforms were important to improving the economy.

The bill as introduced picks up where discussions left off last time. It includes several major changes, including switching the U.S. to a first-to-file system from a first-to-invent system, creating a post-grant opposition system to allow challenges to patents within 12 months after they have been issued, and eliminating the publication of pending patent claims. Further, it streamlines many of the forms and procedures in the patent application process.

Senate Judiciary Chairman Leahy said that hearings on the new bill will begin next week. Because the bill stalled in the Senate last time, the House Judiciary Committee is waiting for Senate action before bringing the bill up for consideration.