Wednesday, August 1, 2007

Notes from the Platform Equality hearing

Rep. Howard Berman, Chairman of the House Judiciary Subcommittee on Courts, the Internet and Intellectual Property, held a hearing on "Platform Equality", which would end the decades long royalty exemption for terrestrial broadcasts.

House Hearing on Ensuring Artists Fair Compensation

Howard Coble (R-NC), Steve Cohen, (D-TN), Lamar Smith (R-TX) and Darrell Issa (R-CA) were among those voicing support for the proposal to end the terrestrial broadcast sound recording performance royalty exemption.

The three main arguments for this according to Berman:

    • The exemption was never justified under copyright law
      Calbe, Satellite and Internet have to pay these royalties. There should be no discrimination based on platform.
      US us the only major country that doesn't have a sound recording performance right.
  • Terrestrial broadcasters currently only pay royalties to the composers of the music; the "musical work". They do not pay for the use of the sound recording. In 2005, broadcasters paid $450 million in muscical work performance royalties.

    Issa stated that congress is preparing to reorganize section 114 of the copyright act. (This is the sections that covers royalties for internet, satellite and cable services and provides exemptions for some other uses, such as use of music in business environments.)

    Issa spoke a lot about HD radio, and the threat it makes to sale of CDs. He is under the impression that the 64kb or lower compressed digital audio sounds as good as CD. HD does not stand for High Definition. It stands for "Hybrid Digital". Unlike HDTV, which improved the signal quality delivered to consumers, HD radio is not a marked improvement. Signal to noise ratios are improved, but there are audible compression artifacts in the audio.

    Issa also talked about a flood of HD radio recording devices that automatically split tracks coming out soon. (I think he's extremely wrong on this, there is so little uptake on HD hardware, there are only 2 or 3 HD radios on the market right now, and they're selling very poorly. I've heard a statistic several times that say an American is more likely to be run over by a bus than they are to listen to HD radio in the last year.)

    Steve Cohen, who represents Memphis, TN,

    San Jose, CA representative Zoe Lofgren was the only rep to speak out on the importance of small, independent internet (and non-internet) braodcasters. While she's not necessarily opposing the rate, she wants a rate that won't hurt small and non-commercial broadcasters.

    (more later)

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    2 Comments:

    Blogger PocketRadio said...

    HD Radio is no threat - HD looks DOA:

    http://hdradiofarce.blogspot.com/

    August 1, 2007 12:30 PM  
    Anonymous Anonymous said...

    I always thought that selling music is a bit weird. How can you sell a feeling for example? On a larger scale, the composer writes a tune and gives it out to the world forever. Untill the recording is there - it will be listened to and no money will ever really be able to cover the good tune. I know it sounds very much like philosophy, but - hey! Why not?
    Of course, an artist should be getting money to stay alive and even be rich, but selling records is not the only way to go, right?

    Louigi Verona.

    August 2, 2007 2:53 AM  

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