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Resolutions 2009

WHEREAS terrestrial radio broadcasters currently enjoy a unique government-created exemption from having to compensate creators and owners of sound recordings for using their music in business; and

WHEREAS terrestrial radio remains the only radio platform that does not compensate the creators and owners of the sound recordings it uses in its broadcasts, resulting in an unfair government-mandated economic advantage over competitors; and

WHEREAS the United States remains the only OECD country that does not provide a broadcast performance right for creators and owners of sound recordings; and

WHEREAS the United States’ lack of a performance right means foreign stations are not required to pay for the broadcast of U.S. music (which constitutes 30-50% of their music programming), resulting in a loss of millions of dollars annually for our national and local economy; and

WHEREAS residents in our States participate in the music industry and are directly affected by the lack of a performance right; and

WHEREAS fair and responsible business practice calls for reasonable compensation for use of another’s product; and

WHEREAS current law does not provide any right for creators or owners to negotiate for use of, or compensation for, their sound recordings; and
WHEREAS broadcasters do correctly pay songwriters but not the creators and owners of the recordings of the same music; and

WHEREAS terrestrial radio has grown into a multi-billion dollar industry by using music to attract advertising revenue without providing any compensation to the creators and owners of those sound recordings; and

WHEREAS terrestrial radio stations already receive free broadcast spectrum from the federal government; and

WHEREAS terrestrial radio’s public interest obligations are satisfied in exchange for such free broadcast spectrum but do not provide for free music; and

WHEREAS payment for the broadcast of such music does not constitute a “tax,” but provides appropriate compensation for the use of another’s property; and

WHEREAS possible promotion of a product does not excuse a business from paying for the use of that product; and

WHEREAS sound recording creators and owners have sought a broadcast performance right for more than 70 years;

THEREFORE LET IT BE RESOLVED, that, in recognition of the significant achievements and offerings of our State’s musicians, singers, producers, recording owners, and others, and to correct a longstanding inequity in our federal law resulting in significant loss to our economy and its citizens, the NHCSL calls upon policy makers at all levels of government, including but not limited to Congress and the US Senate, to support efforts to adopt legislation or take any actions in support of The Performance Rights Act.

BE IT FURTHER RESOLVED THAT, a copy of this resolution be sent to members of the U.S. Congress and the U.S. Senate.

This resolution was adopted on April 25, 2009, at the National Hispanic Caucus of State Legislators Executive Committee Spring Meeting held in Washington, DC.

Representative Joseph Miró (DE), NHCSL President
Sponsored By: Representative Mara Candelaria Reardon (IN)

 

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