Traditional Radio Royalty Debates Bubbling on Capitol Hill... Again

The debate over traditional radio royalty requirements in the United States is bubbling once again on Capitol Hill, according to correspondence leaked Thursday to Digital Music News. An internal letter circulated amongst lawmakers urges against the passage of a measure that would further exonerate traditional broadcasters from paying royalties for the use of recordings, a longtime exemption. "In the coming days, you will likely be presented with a resolution supported by radio broadcasters, which advocates protections for the radio industry but in effect denies performers payment for their work," the letter states.

The letter was distributed by representatives John Conyers, Jr. (D-Michigan; Chairman, House Committee on the Judiciary), Howard Berman (D-California; Chairman, House Committee on Foreign Affairs), Darrell Issa (D-California; Ranking Member, Government Oversight and Reform Committee), and Marsha Blackburn (R-Tennessee). Those lawmakers are advocates for the Performance Rights Act, a bill that would require payments for the use of broadcast recordings.

Currently, radio broadcasters in the United States are only required to pay royalties to publishers, and not labels or master owners. That has been a sticking point for decades, though broadcasters argue that the promotional value of their platform offers enough benefit to labels. The argument probably holds water for current content, though it is less convincing on older, or heritage, songs. Broadcasters also argue that a royalty on recordings would create an unfair burden, especially for smaller stations.