Deciphering the Performance Rights Act’s Impact on the Music Business in New York and Everywhere Else, PT. 1
By: Jeannine Coppola
Earlier last month, the Obama administration expressed its support for a bill that would demand radio broadcasters pay royalties to musical performers, in addition to composers and record labels, every time their songs are played on air.
The Performance Rights Act is a proposed update to American Copyright law, which has long exempted terrestrial radio from paying royalties to performers, even though Satellite and digital stations have been required to do so for several years now. The Government’s approval of the bill is based on its belief that radio is still a vital means for an artist’s promotion and overall success. Cameron Kerry, general counsel of the Department of Commerce, further explained the bill’s intention to advance artist development, stating in a letter to Sen. Patrick Leahy (D-VT), chairman of the Senate Judiciary Committee, “Fair compensation to America’s performers and record companies through a broad public performance right in sound recordings is a matter of fundamental fairness to performers.”
On the surface, this may seem like a godsend for overburdened “work-for-hire” studio players or disgruntled bandmates that have contributed to huge hits without compensation in the wake of their successful songwriting counterparts; not to mention double royalties for artists who both write and perform their own songs. Moreover, American performers would also be entitled to royalties overseas, where currently they do not benefit from their songs being played on international airwaves due to the absence of “reciprocal protection”.
However, if this bill passes, these musicians and singers may be profiting at the expense of the rapidly declining broadcasting industry, and ultimately could lead to its demise. Without radio to help launch new artists’ careers and further generate revenue for established ones, it can be argued that the bill will cause a Catch-22 situation. Still, in today’s age of ever-advancing technology such as file sharing programs and torrent websites, radio is no longer a point of entrance for many music fans and it is unlikely that these bonus royalties will have a significant effect on the recording industry save for furthering the wealth of a few of its top stars like Lady Gaga. Instead of promoting better relations between recording artists, their labels and radio stations, the Performance Rights Act is causing a fierce rivalry between musicians and broadcasters.
More in the next installment…
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