Internet Radio Fairness Act debate opens in Washington
The jockeying has begun on Capitol Hill over congressional legislation known as the Internet Radio Fairness Act, or IRFA (HR 6480 and S3609), with many musicians, record companies and performing rights organizations lining up in opposition to the bills that are supported by Internet radio operators and other big tech companies such as Google.
Pakman and Kennedy have lobbied for passage of IRFA, which is sponsored in the House pandora charms wedding of Representatives by Rep. Jason Chaffetz (R Utah).Jam, Huppe and others testified that musicians are already getting the short end of the stick from Internet, satellite and broadcast radio (with the latter paying no royalties for the music they broadcast) and reducing royalty rates, in effect, would add injury to insult.They were joined in that sentiment by Michigan Rep. John Conyers (D Mich.), who stated: "A more appropriate [bill] title might be the paycheck reduction act, because what it would do is lower the royalties that Internet radio pays by more than 85%. I want to make a prediction: This bill may well be the catalyst to advancing an AM/FM music performance royalty."Jam noted that the majority of musicians are not millionaire superstars, but middle class artists often struggling to make ends meet. "Their talent is necessary to make the industry work. An artist gets 70 cents per song download, but only a tenth of a penny for a Pandora stream that's why the Internet royalty is so high."Pakman said his venture firm is staying out of pandora website jewelry the field "because of the current licensing regime it virtually prevents success. The failure rate of digital music companies is among the highest of all fields Venrock looks at, making them non investable businesses."Likewise, Hubbard Radio jewelry seattle executive Reese said, "The Internet presents an opportunity to expand, but streaming is impeded by high, unaffordable royalty rates. There simply is not enough revenue to cover jewelry pandora rings costs."Huppe disagreed, telling the house committee that "a Pandora listener who spends 250 hours with the service costs Pandora only $4 in royalties, and now Pandora wants to lower it further. What would a willing buyer pay a willing seller for this?"IRFA seeks to reduce compulsory license fees that Internet radio firms pay to the same rate satellite and cable operators pay.But much of the testimony addressed the long standing free pass that broadcast radio has enjoyed dating back to the 1940s, a time when radio was considered free promotion for musicians and their record companies."Why should one business get to take the intellectual property of another without compensation?" Jam said. "Terrestrial radio doesn't pay a penny for performances. Congress must close the corporate radio loophole. IRFA is anything but fair, and by all means it is time to hold a conversation about fairness. International (NASI) issued a joint letter opposing passage of IRFA.The bills also are being opposed by conservative think tanks including the American Conservative Union, Citizens Against Government Waste (CAGW), and Taxpayers Protection Alliance, which sent letters outlining their positions to Congress, arguing that the free market, not Congress, should decide what royalty rates are fair.
"While we agree with the basic premise that all [digital radio] services should be treated equally, it should be under market based standards," wrote Thomas Schatz, president of the CAGW. "It is imperative that Congress protect intellectual property rights, and allow the free market to work in pricing negotiations.".
Prev: pandora on sale
Next: pandora on line shopping