“Today, the record labels received another bipartisan rejection of their destructive plan to impose a transfer tax on local radio stations — a proposal that if passed, would disassemble our airwaves,” said Cathy Rought, Free Radio Alliance spokesperson. “The more than 200 members of the Free Radio Alliance applaud Sens. Blanche Lincoln (D-AR) and Roger Wicker (R-MS), along with co-sponsors Sens. Wayne Allard (R-CO), Sam Brownback (R-KS), Lisa Murkowski (R-AK), Ben Nelson (D-NE) and James Webb (D-VA) for introducing S. Con. Res. 82.”

“Radio isn’t just for entertainment — it is a vehicle vital to the circulation of local news and information for the community. When disaster strikes, people turn to their radio for updates and safety. Radio stations also lend a hand in their communities — using the airwaves to help raise funds and awareness for everything from food banks to displaced families.”

“Radio helps record sales, period. Combined with the more than 200 co-sponsors of the House companion resolution (HCR 244), S. Con. Res. 82 shows that our elected officials on both sides of the aisle grasp the importance of local radio and resolve to protect it from greedy label-driven initiatives.” – Free Radio Alliance

With the NAB beating the bushes for co-signers to Senate Resolution 82, which mirrors the House resolution that was introduced by Reps. Gene Green and Mike Conaway last December. (And not last week, as T-R-I wrote yesterday – sorry for the confusion.) Senate Res. 82 says “Congress should not impose any new performance fee, tax, royalty or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over the air, or on any business for such public performance of sound recordings.” The bipartisan resolution is brought up by Arkansas Democrat Blanche Lincoln and Mississippi Republican Roger Wicker and has early support from Senators Allard (R-CO), Brownback (R-KS), Murkowski (R-AK), Nelson (D-NE) and Webb (D-VA). – Radio-Info.com

A bipartisan resolution against the "performance tax" was introduced TODAY in the U.S. Senate by Sens. BLANCHE LINCOLN (D-AR) and ROGER WICKER (R-MS). The bill, which is being backed by Sens. WAYNE ALLARD (R-CO), SAM BROWNBACK (R-KS), LISA MURKOWSKI (R-AK), BEN NELSON (D-NE), and JAMES WEBB (D-VA), is similar to a house bill that is being backed by more than 200 lawmakers.

The bill, S. Con,. Res. 82, reads, "Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over the air, or on any business for such public performance of sound recordings."

NAB EVP DENNIS WHARTON said, "NAB salutes Sens. LINCOLN and WICKER and their Senate colleagues for formally recognizing radio airplay's enormous value to both record labels and recording artists. The undeniable fact is that radio airplay is a musician's greatest promotional tool and generates millions of dollars in revenue annually for RIAA-member companies and performers." – All Access

A bipartisan resolution against the "performance tax" was introduced TODAY in the U.S. Senate by Sens. BLANCHE LINCOLN (D-AR) and ROGER WICKER (R-MS). The bill, which is being backed by Sens. WAYNE ALLARD (R-CO), SAM BROWNBACK (R-KS), LISA MURKOWSKI (R-AK), BEN NELSON (D-NE), and JAMES WEBB (D-VA), is similar to a house bill that is being backed by more than 200 lawmakers.

The bill, S. Con,. Res. 82, reads, "Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over the air, or on any business for such public performance of sound recordings."

NAB EVP DENNIS WHARTON said, "NAB salutes Sens. LINCOLN and WICKER and their Senate colleagues for formally recognizing radio airplay's enormous value to both record labels and recording artists. The undeniable fact is that radio airplay is a musician's greatest promotional tool and generates millions of dollars in revenue annually for RIAA-member companies and performers." – All Access

The major record labels hit another road block Monday after a bipartisan resolution recognizing the promotional value of free radio airplay was introduced Monday afternoon in the U.S. Senate. The resolution, introduced by Senators Blanche Lincoln (D-AR) and Roger Wicker (R-MS), has gained the support of Senators Wayne Allard (R-CO), Sam Brownback (R-KS), Lisa Murkowski (R-AK), Ben Nelson (D-NE) and James Webb (D-VA). – Radio Online

The long-awaited Senate version of an anti-performance royalty bill was introduced Monday afternoon (May 12) that is intended to prevent Congress from passing legislation that would permit record companies from collecting fees from broadcasters for airing their recordings. The legislation is a bipartisan effort introduced by Sens. Blanche Lincoln (D-Ark.) and Roger Wicker (R-Miss.). The measure also has the backing of Sens. Wayne Allard (R-Colo.), Sam Brownback (R-Kan.), Lisa Murkowski (R-Alaska), Ben Nelson (D-Neb.) and James Webb (D-Va.). A similar bill was introduced last Halloween in the House of Representatives by Reps. Gene Green (D-Texas) and Mike Conaway (R-Texas). The House measure currently has 201 or more signatures.

The concurrent resolution supporting the “Local Radio Freedom Act” notes, “The United States enjoys broadcasting and sound recording industries that are the envy of the world, due to the symbiotic relationship that has existed among these industries for many decades” and that, “for more than 80 years, Congress has rejected repeated calls by the recording industry to impose a performance fee on local radio stations for simply playing music on the radio and upsetting the mutually beneficial relationship between local radio and the recording industry.”

The resolution argues that local radio stations “provide free publicity and promotion to the recording industry and performers of music in the form of radio airplay, interviews with performers, introduction of new performers, concert promotions, and publicity that promotes the sale of music, concert tickets, ringtones, music videos and associated merchandise.” Because of that, reasons the legislation, broadcasters would be exempt from such royalty payments that are already imposed on satellite broadcasters, Internet radio and terrestrial radio stations that stream their programs on the Internet.

While the RIAA and its lobbying effort known as musicFirst have lobbied hard in Congress to have the Library of Congress Copyright Office set rates that radio stations would have to pay, the NAB and it Free Radio Alliance have seen the effort as Public Enemy No. 1 and declared war on the effort to impose “taxes,” as NAB president/CEO David Rehr insists on calling the potential fee.

Introduction of the Senate bill immediately won support from the radio company most likely to be affected in the biggest way if such fees were instituted -- Clear Channel -- which has about 700 or more radio stations coast-to-coast.

"Clear Channel applauds over 200 members of Congress who reject the notion that a so-called performance fee should be imposed on local broadcasters,” the company said in a statement released Monday afternoon. “This issue is not about fair compensation -- far from it. It is a blatant attempt by the record companies to pump up their failing business model by getting Congress to redistribute income from our industry to theirs. Local broadcasters should not bear the burden of this big company bailout.”

Free Radio Alliance spokesperson Cathy Rought said, “Today, the record labels received another bipartisan rejection of their destructive plan to impose a transfer tax on local radio stations -- a proposal that, if passed, would disassemble our airwaves. Radio isn’t just for entertainment -- it is a vehicle vital to the circulation of local news and information for the community. When disaster strikes, people turn to their radio for updates and safety. Radio stations also lend a hand in their communities, using the airwaves to help raise funds and awareness for everything from food banks to displaced families.” – Radio and Records

With members from both sides of the political aisle, the radio industry’s effort to block an attempt to do away with its royalty exemption has moved to the Senate. That’s where Senators Blanche Lincoln (D-AR) and Roger Wicker (R-MS) have introduced a resolution (SCR 82) that says “Congress should not impose any new performance fee.” The Senate’s move mirrors a House effort introduced last October. While a non-binding resolution, Free Radio Alliance spokesperson Cathy Rought says it shows lawmakers “grasp the importance of local radio and resolve to protect it.” The radio industry has put on a full-court press to block a royalty, including outreach by broadcasters to their local congressmen. It’s an effort that appears to be working. Clear Channel EVP Andy Levin says “This issue is not about fair compensation — far from it. It is a blatant attempt by the record companies to pump up their failing business model by getting Congress to redistribute income from our industry to theirs.” – Inside Radio

The editorial "Radio royalties: Respect" (Inquirer, March 8) missed a crucial point in the ongoing performance fee debate - record companies ask for their artists to be played on radio stations because they know it makes them profitable. Nearly 173 million Americans listen to radio every day, delivering the mass audiences that turn musicians into rock stars and generate profits for the record companies and artists from sales of music, concerts tickets, T-shirts and more. Radio helped to make the careers of the artists mentioned in the editorial - from Madonna to Elvis. Recording artists and songwriters are compensated in different ways. Radio stations pay hundreds of thousands of dollars per year to songwriters and composers to play their music over the airwaves, while recording artists are compensated by both the record labels and consumers. – Cathy Rought - Letter in The Philadelphia Inquirer

The Buffalo News editorial of Jan. 30, headlined “Pay royalties to musicians,” paints a very simple picture — radio stations should pay artists for playing their music. Problem is, it just isn’t that simple. The record companies, hiding behind the artists, claim that Congress should mandate a brand new performance fee on local radio to “compensate artists,” a fee in the ballpark of hundreds of millions to billions of dollars. The News missed this crucial point: Under the existing structure, artists and the record labels already are compensated for their work. – The Buffalo News

The recording industry is facing yet more bad news. Forget about Warner Music Group's plummeting stock price, or the shrinking retail floor space. Forget about EMI's announcement this week that it's cutting 1,500 to 2,000 jobs. At least the new owners of EMI are recognizing that they bought into a dead industry and are trying to confront it head-on with significant changes in business strategy. It remains to be seen if the suits who now own EMI can navigate the shark-infested waters of a business that feeds on schadenfreude. – News.com

A CRB ruling hints at just how much may be at stake if the record industry is able to convince Congress to reverse a decades-old standard of giving terrestrial radio’s royalty exemption. Attorney David Oxenford says it could mean 20% of revenues skimmed off the bottom line for music radio. The theory begins with a CRB ruling which turns down a request by the record industry to take a second look at its decision establishing a royalty for XM and Sirius. The CRB set a 6% rate for the first two years with an increase to 8% in 2012. But the record company’s collection agency, SoundExchange, wanted a rehearing since it felt the CRB exempted too much of the satcasters’ revenues from the equation. CRB says the decision stands. Oxenford says the CRB “assessed not only the economic value of the sound recording, but also the public interest in the wide dissemination of the copyrighted material and the impact of the royalty on the service using the music.” He points out the XM-Sirius rate is “far lower” than what was assessed on Internet radio. But before anyone celebrates, Oxenford says “This computation has significant implications for broadcasters.” That’s because using the same line of reasoning to bills targeting terrestrial radio circulating Congress and radio might end up with a 20% royalty. Oxenford says “Imagine what such a royalty would do to the business of terrestrial radio — if 20% of music radio revenues were skimmed off the top to go to pay a performer’s royalty.” – Inside Radio

(NewsTarget Satire) On the heels of the RIAA's recent decision to criminalize consumers who rip songs from albums they've purchased to their computers (or iPods), the association has now gone one step further and declared that "remembering songs" using your brain is criminal copyright infringement. "The brain is a recording device," explained RIAA president Cary Sherman. "The act of listening is an unauthorized act of copying music to that recording device, and the act of recalling or remembering a song is unauthorized playback." – NaturalNews.com

Rep. Howard Berman has introduced legislation that would require radio stations to compensate performers for songs played over the airwaves. But broadcasters insist the legislation - which lawmakers are likely to consider this year - would be the death knell for radio. – Los Angeles Daily News

I would like to applaud the leadership shown by U.S. Rep. Jo Ann Emerson in co-sponsoring the Local Radio Freedom Act. This resolution acknowledges the important role local radio serves in not only promoting new music and artists, but also in promoting the community as a whole. – Southeast Missourian

Both the House and Senate have introduced measures that would charge a performance tax for broadcast radio outlets. The NAB vowed to "aggressively" fight the proposed royalties, which also are opposed by 119 House members. "After decades of Ebenezer Scrooge-like exploitation of countless artists, RIAA and the foreign-owned record labels are singing a new holiday jingle to offset their failing business model," NAB spokesman Dennis Wharton said. – DV Confidential

House Concurrent Resolution 224, a.k.a. the Local Radio Freedom Act, has added eight more signatures, and now has the support of 127 members of the House, 78 Republicans and 49 Democrats. – Radio Ink

Lawmakers in the House and Senate on Tuesday took the first step in a process to eliminate a longstanding exemption granted to AM and FM radio stations, which allows them to broadcast music without paying royalties. – Andrew Noyes - National Journal Technology Daily

Since the dawn of the musical era in radio, broadcasters have been free from paying royalties to musical performers. Radio was once the bands' ticket to the big leagues. That may change if two congressmen have their way. – BetaNews

Senator Patrick Leahy (D-VT) (pictured far left) and Rep. Howard Berman (D-CA) introduced bills in the Senate and House, respectively, on Tuesday to impose royalty fees on local radio for airplay. This despite the mounting support (119 and counting) for House Concurrent Resolution 244, introduced in late October, which states, "Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio." – Wired

Musicfirst MusicFIRST, an organization partially funded by SoundExchange, announced that its lobbying to get Congress to force AM and FM radio stations to pay record labels have paid off handsomely.

Senators Patrick Leahy (D-Vermont) and Orrin Hatch (R-Utah) joined Representatives Howard Berman (D-California) and Darrell Issa (R-California) in introducing a bill for the "Performance Rights Act of 2007? which would force U.S. radio stations to pay record labels for the right to play music over the air for the first time. – Wired

Lobbying groups on both sides weighed in quickly on the introduction of bills in the House and Senate to impose performance royalties on broadcasters, with the Free Radio Alliance calling royalties a "transfer tax on local communities" and the MusicFIRST Coalition saying the legislation closes a "corporate radio loophole." – Radio Ink

Senator Patrick Leahy and Representative Howard Berman unleashed their long-expected performance tax bills earlier today, which will impose a new tax on local radio stations and transfer the revenue into the pockets of the record labels. "This bill, which was so long in the making, is drafted around exemptions and discounts, and the result is bad public policy. – Free Radio Alliance

I would like to applaud the leadership shown by U.S. Rep. Michael Michaud in co-sponsoring the Local Radio Freedom Act. This resolution acknowledges the important role local radio serves in not only promoting new music and artists, but also in promoting the community as a whole.

The performance fee to radio and other businesses proposed by Rep. Howard Berman, D-Calif., would help destroy the good work of local radio stations by burdening them with immense extra fees, to be mostly paid to foreign-owned record companies (yes, three out of the four major record labels garnering 80 percent of USA record/CD sales are foreign-owned!).

Michaud's leadership will help protect such from happening.

Bob Bittner, Owner – WJTO Radio 730
– Kennebec Journal & Morning Sentinel

Reps. Gene Green (D-TX) and Mike Conaway (R-TX) last month introduced a resolution opposing performance royalties on broadcasters and other businesses, and House Concurrent Resolution 24 now has 104 co-sponsors. – Radio Ink

I find it curious that record labels are suddenly concerned about compensation for performers (Our Opinion, Nov. 2)! For decades, labels have given pennies on the dollar to struggling artists who had little leverage at the bargaining table. Would it be too obvious to suggest that record labels open their own checkbooks and compensate their artists fairly before asking Congress to mandate a new fee on radio stations? Considering, of course, 50 percent of the new fee would conveniently go to the labels, not the artists. – Cathy Rought Op-Ed in The Tampa Tribune

The performance rights issue, or as NAB calls it, a "performance tax," is getting more attention in advance of a Senate Judiciary Committee hearing on the issue scheduled for next week. NAB President/CEO David K. Rehr said in a notice to members this week the trade group anticipates Rep. Howard Berman, D-Calif., will introduce a bill calling for radio stations to pay the record labels for performance rights. Radio has traditionally been exempt from the fees in recognition of the value of airplay to new artists. – Radio World Online

The MusicFIRST Coalition is proposing a flat performance royalty rates for small commercial radio outlets, noncommercial stations and college stations. But the Free Radio Alliance says not to be fooled by the group formed last June to lobby Congress for a performance royalty. The current proposal floating around wants small commercial outlets to pay a flat $5000 per year and while the noncommercials would pay $1000. – Radio Online

The Free Radio Alliance has responded to MusicFIRST's proposed flat performance-royalty rates for certain broadcasters by saying, "Don't be fooled." Radio Ink on Tuesday obtained a document the MusicFIRST Coalition has been circulating on Capitol Hill proposing flat annual performance royalties of $5,000 for "small" commercial broadcasters and $1,000 for college stations and noncoms. – Radio Ink

In a gamble that is certain to receive stiff opposition from both sides of the aisle, Reps. Gene Green (D - Texas) and Mike Conaway (R - Texas) offered to the floor of the House of Representatives yesterday a draft resolution opposing the imposition of royalties on terrestrial radio broadcasters for the use of sound recordings.

"For more than 80 years, Congress has rejected repeated calls by the recording industry to impose a performance fee on local radio stations for simply playing music on the radio and upsetting the mutually beneficial relationship between local radio and the recording industry," reads one clause of the draft for House Concurrent Resolution 244, which thus far has garnered 50 co-sponsors. – BetaNews

NAB said 53 members of the U.S. House are backing a bipartisan resolution opposing additional music royalty fees on radio. The resolution was introduced by Reps. Gene Green, a Democrat, and Mike Conaway, a Republican, both from Texas, with 51 cosponsors.

"Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over-the-air, or on any business for such public performance of sound recordings," the proposed resolution states.

Of the resolution, Free Radio Alliance Spokesperson Cathy Rought said, "These members of Congress clearly understand the importance of local radio to their constituents. It's just wrong for Congress now to step in on the side of one industry and impose a new congressionally mandated tax." – Radio World Online

Reps. Gene Green (D-TX) and Mike Conaway (R-TX) have introduced a resolution saying, "Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over-the-air," and 51 other House members have signed on.

The resolution first cites the success of the long-standing "symbiotic relationship" between the broadcast and recording industries and notes that local radio provides "free publicity and promotion" to recording artists through airplay, on-air interviews, and concert promotion. – Radio Ink

Back in August we brought you word of the formation of the Free Radio Alliance, a grassroots organization aiming to be the true voice of independent and local broadcasters. Now, on next Wednesday (Oct. 10), the 150-member FRA will officially launch with a picnic on Capitol Hill in Washington DC. The event will take place from noon until 2.p.m. at the West Front of the U.S. Capitol. For more info about the FRA go to the official Free Radio Alliance website. You can also contact spokesperson Cathy Rought at 202-715-1543 or 202-263-9097, or via email at info@freeradioalliance.org.

As the FRA informs us: What's more American than apple pie and as diverse as the communities we serve? Local radio stations in thousands of communities across the United States. With more than 150 members including all genres of radio stations - big and small broadcasters, minority, public and farm broadcasters - the hospitality industry, non-profit groups and more, the Free Radio Alliance will celebrate its launch on the Capitol lawn next Wednesday with a picnic, a countdown of the top radio hits from 1960s through today and more information about the importance preserving radio in our communities today. – Harp Magazine

The Free Radio Alliance, which counts among its membership the NAB, Border Media Partners, Bustos Media, Davidson Media Group, NABOB, NPR, Salem Communications, Spanish Broadcasting System, Univision, and a number of state broadcasters' associations and hospitality-industry groups, will launch officially with a picnic on the Capitol lawn on October 10 from noon-2 p.m.

Free Radio Alliance says it is "a coalition of people and organizations that believe radio should belong to the people, not the record labels." The group was formed in August to lobby against recording-industry efforts to have a performance right imposed on broadcast radio that would require broadcasters to pay a royalty to copyright owners for each song they play.

The group says, "If the new tax is approved by Congress, it could force thousands of smaller, niche radio stations and public venues out of business. Even the bigger radio stations would have less revenue to provide local news and information.". – Radio Ink

...Elsewhere, however, some sensible, level-headed attempts to strike back are underway. This week a coalition of local radio broadcasters, Latino and African American groups, non-profit associations and other community groups announced their intention to form the Free Radio Alliance to oppose a "performance tax" being pushed in Congress by the recording industry lobby. Although still in the beginning stages, the Free Radio Alliance already boasts 30 plus members and continues to grow... – Harp Magazine

A push by Rep. Howard Berman, D-Van Nuys to make sure that singers are paid royalties when their songs are played on the radio has spurred a new opposition group. The organization, calling itself the Free Radio Alliance, so far consists of 30 members and opposes what it calls a "performance tax" that would cost as much as $7 billion and likely kill small stations. – DailyNews.com Blogs

Spanish-language broadcasters Univision Communications, Border Media, Bustos Media and Davidson Media Group, along with National Public Radio, are among the founding members of the newly formed Free Radio Alliance, whose mission is to fight the recording industry's efforts to gain a performance royalty from broadcast radio and TV. – Radio Ink

Earlier today, a coalition of local radio broadcasters, Latino and African American groups, non-profit associations and other community groups announced their
intention to form the Free Radio Alliance to oppose a “performance tax” being pushed in Congress by the recording industry lobby. Although still in the beginning stages, the Free Radio Alliance already boasts 30 plus members and continues to grow.