Home law NAB Compromise on Radio Royalties Includes FM Phone Chips

NAB Compromise on Radio Royalties Includes FM Phone Chips

October 26, 2010

1331

Washington – The National Association of Broadcasters (NAB),
a trade group representing radio stations, TV networks and others, has
submitted a proposal aiming to settle an ongoing dispute over performance
royalties for radio. While NAB says it remains "100 percent opposed"
to proposed legislation that would for the first time make radio stations pay
record labels for songs played on-air, it has proposed that stations pay
between 0.25% and 1% of net revenues in royalties.

However, the NAB proposal
also contains a controversial law mandating FM radio chips in cell phones,
which consumer electronics firms have opposed.

The proposal calls for "an
‘acceptable phase-in period’ and the inclusion of HD Radio chips when that is
‘economically feasible.’"

"If a law requiring radio in cellphones
passes, the streaming rates for simulcasts, webcasts, and other non-terrestrial
music transmissions would be reduced through 2016," the NAB said.

The NAB
also seeks "the permanent removal of the Copyright Royalty board from
rate-setting for terrestrial and Internet streaming," which it would like
to see replaced by to be a "legislatively mandated rate court."

"While
we are pleased that the radio broadcasters have for the first time acknowledged
their obligation to pay the artists who are the foundation of their business,
we are disappointed that they failed to vote on the deal both parties agreed
upon in July," said Tom Matzzie of musicFIRST, a coalition of musicians,
recording artists and music-related companies pushing for a performance royalty
on radio.

"After a quick review, this new term sheet differs significantly
from that agreement. We will be reviewing their term sheet further."

In a
response to musicFIRST, NAB denied the existence of any July agreement.

http://www.musicfirstcoalition.org/node/812

http://www.nab.org/documents/newsRoom/pressRelease.asp?id=2392

http://tinyurl.com/26nhpm6
(MediaWeek)

http://images.radcity.net/5173/4533396.pdf
(PDF of term sheet)