Saga CEO Ed Christian also chairs the industry’s Radio Music License Committee, and he circulates a note saying that Bonneville CEO Bruce Reese’s comments at last Friday’s Conclave didn’t represent the NAB – just Bonneville. The Radio Music License Committee represents stations in their relationship with the so-called Performing Rights Organizations: ASCAP, BMI and SESAC. Christian says the radio industry is already recognizing “the true creators” of musical products by compensating the composers, authors and publishers. He says “the system has worked well for us since the inception of performing rights organizations, decades ago.” Now the recording industry and some artists want to add a new performance royalty, similar to that which is in place in almost all the rest of the world. The Saga executive notes the Bruce Reese comment that “Congress really wants to do something for artists” and says it’s “indeed puzzling”, since about 50% of the money from the proposed new performance royalty would go to the labels, and not artists. Here’s the text of Ed Christian’s email:

“I do believe that Bruce Reese speaks for Bonneville and not necessarily for the radio industry. His comment that ‘Congress really wants to do something for artists’ is indeed puzzling. If that were the case why are roughly have [half] of the proposed monies being directed to the music companies? If there is such an overwhelming concern for the artists…If Congress cares so much… [then] do it right and send them 100%. As an industry, we DO respect intellectual property. We venerate composers, authors and publishers and make payments to Performing Rights Organizations (such as ASCAP and BMI and let us not forget SESAC) of close to a half a billion dollars in 2009. That certainly is opening our wallets. Though the Radio Music License Committee is working towards new contracts with the PRO’s that reflect the reality of our revenues, composers, authors and publishers will still be compensated. With this is mind, has there ever been a study that shows how many performers are already compensated by writing their own music? As I said, there is no question about our responsibilities towards those who created the words and music. This is the genesis of music. The words and music are eternal and do indeed need to be recognized. In many respects, radio recognizes the true creators of our product. This system has worked well for us since the inception of PRO’s……Where is the line in the sand? Next, will we have royalties for the club DJ’s who say ‘I should be compensated because of my skills and abilities to mix and blend music.’”