Don’t let Congress tax local radio out of existence

A couple Bills were written in the House and Senate that not many people have heard about.  Labeled the “Performance Rights Act,” H.R. 848 and S. 379 would impose a “performance fee” on stations for broadcasting music.   Actually, this has been brewing since 2007, but the most recent incarnations of these bills were written this last February. 

Though the proponants of the bill claim money taken through these fees will go to artists, the reality is that very few newer artists actually own the copyrights to their songs.  The biggest group of artists to benefit from these bills will, in fact, be those with enough clout to own their own copyrights — most of whom are already filthy rich.  The main copyright holders in this industry are, in fact, record labels.  And, of those new artists who do own their own copyrights, such a fee would actually be a detriment — if broadcasters have to pay for the “privelidge” of promoting these bands and songs on air, we’re certainly not very likely to waste that time on untried artists. 
So what these bills will actually do is keep money in the hands of the rich, by taking it out of the pockets of radio broadcasters, including small, local and independent stations.  In other words, we would be looking at a situation where large corporations prosper at the expense of small business — by federal law.  And let’s face it, local radio is already in some trouble.  Year after year it becomes harder for independent stations to compete with large corporate entities like Citadel or Radio 1.  Under a free market system, these smaller stations find ways to keep operating.  They make cuts where necessary, they gain favor of local businesses… and those that don’t exactly thrive are at least surviving.  These bills would be inconvenient for corporate radio.  They could very well spell the end for many smaller stations.
But, the arguement goes, don’t these artists and copyright holders deserve to be paid?  After all, the songwriters are being paid by the stations, so why not the other copyright owners?  Well, because, put simply, artists and record companies are being paid because of what the stations do.  They are paid in sales.  Songwriters, many of whom do not enjoy the noteriety of recording artists, don’t get concert receipts, or promotion deals.  They get paid primarily through the airplay and performance of their songs.  Recording artists, on the other hand, get paid for showing up and smiling at the camera.  These “other” copyright holders get paid through merchandise and other things.  All of which is made possible by the songwriters, but are peripheral to specific songs.  And, of course, you have the fact that many artists write their own songs, which means they are already paid for them through the current system.
But back to the value of radio to the industry, for a minute.  As I said above, in a sense, these other copyright holders are indeed paid by radio stations, through free publicity.  It’s true, a radio station benefits financially through playing these songs.  I would argue, artists and record companies benefit even more.  In fact, as a broadcaster, allow me this moment to address the artists and companies pushing for this legislation:

We give you free publicity.  We do interviews with you, and specials about your upcoming releases.  If it wasn’t for radio, nobody would care who you are — and they certainly wouldn’t pay obscene amounts of their hard-earned cash for your concert tickets and CDs.  You would be a random name on a random CD cover (if you were lucky) that might sell a few thousand copies.  You are rich because we play your music.  Playing your music gets the public interested in your CDs, and in your concert tickets.  That gigantic house?  The limos and car collections?  The throngs of screaming fans?  Yeah.  We did that.  You’re welcome.
Now that that’s out of my system, a final thought on the proposed legislation: why is Government even being involved?  This is a symbiotic market relationship.  Now government has to tell us what we have to pay for, who we have to pay, and how much?  Where is that responsibility in the Constitution?  Not only does the government not have the responsibility to make these kinds of decisions regarding the free market, I would argue, they don’t have the right.
So, what can be done?  first, go to noperformancetax.org and learn more about this legislation, and the efforts to stop it.  Call your local legislature to tell them not to destroy local radio by imposing this fee.  And, fellow North Country residents, call or write Rep. John McHugh to thank him personally for co-sponsoring H. Con. Res 49, a Congressional resolution committing them to the opposition of this so-called “Performance Rights Act.”