COPYRIGHT OFFICE ENDORSES RADIO PERFORMANCE ROYALTY

The Government Copyright Office released a roughly 200 page report outlining recommendations for changes to copyright law on Thursday. The recommendation that has the most wide reaching ramifications for broadcasters, the Copyright Office is recommending expanding public performance rights in sound recordings to include terrestrial radio broadcasters.

The report states that the Copyright Office believes the exemption of terrestrial radio from royalty obligations harms competing satellite and internet radio providers, who must pay for the use of sound recordings. The report continues, "Assuming Congress adopts a terrestrial performance right, it would seem only logical that terrestrial uses should be included under the section 112 and 114 licenses that govern internet and satellite radio."

Other recommendations include:

Federalizing pre-1972 recordings, currently protected only under state law--should be brought within the scope of federal copyright law.

Regulating musical works and sound recordings in a consistent manner. In the digital realm, sound recordings and the underlying musical works should stand on more equal footing. Offering a free market alternative to musical work owners, in the form of an opt-out right  from government oversight. Namely, interactive streaming uses and downloads.

Adopting a uniform market-based ratesetting standard for all government rates. Calling for adoption of a single rate standard, whether denominated "willing buyer/willing seller" or "fair market value" - that is designed to achieve rates that would be negotiated in an unconstrained market.

The Copyright Office is essentially recommending that publishers and other rights owners should have the power to control their own destiny regarding streaming rights.

ASCAP President Paul Williams responded to the report with the following statement, "The current music licensing system needs reform and fast. The report emphasizes how the current system undervalues musical works - something many of our members experience daily. The many proposed updates - particularly recommendations intended to make the system more equitable for songwriters - underscore yet again the inefficiency of the current system for music fans and creators alike."

The NAB Released the following statement on the Copyright Office Music Licensing Report from NAB Executive Vice President of Communications Dennis Wharton, "As it has for decades, the Copyright Office proposes music licensing recommendations looking only through the lens of copyright owners. What cannot be denied is that the U.S. music industry is the envy of the world, aided by a legal framework that enables 244 million listeners to enjoy free and local radio every week. We're pleased that Congress recognizes the unparalleled promotional value of broadcast radio, and has rejected a punitive new fee on local stations. NAB will review this sweeping report and engage both Congress and the Copyright Office as they consider policies that recognize the interests of consumers and innovators."

On a related issue, NAB released the following statement from NAB Executive Vice President of Communications Dennis Wharton on Thursday, regarding the introduction of the Patent Reform Bill (Innovation Act of 2015): "NAB applauds House Judiciary Committee Chairman Robert Goodlatte (R-VA) and his colleagues for their introduction of bipartisan legislation that advances the cause of patent reform. Broadcasters support legislative efforts to curb abusive patent practices that harm our nation's economic growth and cost jobs. We look forward to working with Chairman Goodlatte and other congressional leaders to improve our patent system."

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