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Thursday, February 10, 2011

Performance Royalty is ready to re-appear in the new Congess, says Politico

Michigan Representative John Conyers (D-MI) tells Politico.com that "it's going to be tougher this year than in the 111th (Congress), but we're very active on the performance royalty." Mitch Bainwol of the RIAA (Recording Industry of America) says "I don't know what the mechanism will be", such as tacking the royalty bill onto another piece of legislation. He says "maybe something else will get held up because of their recalcitrance on this issue." Last year, the National Association of Broadcasters for the first time offered to talk about a performance royalty, as part of a package that included the RIAA's support for FM chips in smartphones and other conditions. Those talks fell apart, though NAB CEO Gordon Smith acknowledges that the performance royalty issue won't go away until there's an "equitable solution." Smith says "performers need to be paid. But it's important to understand that the Internet broke their business model, not us." While the RIAA backs the Performance Rights Act (PRA), the NAB is once again rounding up support for its own "Local Radio Freedom Act." That may be introduced in this new Congress very soon. New Jersey Broadcasters Association CEO Paul Rotella has already sent an "emergency communication" to his members, Congressional reps and other state associations. He says "our silence on this issue could be damning."

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