Intellectual Property Law

Pay to Play May Come to Broadcast At Last

By Posted by Alan Wexelblat

No, I'm not talking about modern payola practices in radio again. I haven't bothered to keep up with it in the past few years but I'm convinced that it still goes on.

Instead I've had it called to my attention that the US House of Representatives has taken a step forward in passing legislation that would force traditional radio broadcast stations to pay the Cartel for playing songs on the air. If you've been reading along for the last couple of years you know that cable and Internet radio stations have been required to pay (often very high) royalties for playing tunes. But, historically, AM and FM broadcasters have not had to pay, since on-air play was regarded as free advertising.

The National Association of Broadcasters is out in force against this, calling it a "performance tax." They're in a tight spot already, given that radio advertising has taken a nosedive comparable to advertising in newspapers. It's not helping the Cartel's case that at least 50% of the new fees will go to improving their corporate bottom lines and not to artists at all. The NAB hasn't hesitated to point out how the labels have screwed artists in the past, either.

Expect a major floor fight and heavy lobbying by both sides on this one. Given the current state of the US economy I don't see how the broadcasters can afford to lose this one.

Full post as published by Copyfight - The Politics of IP on May 14, 2009 (boomark / email).