Legislators propose new royalties for Big Radio

LEGISLATORS PROPOSE NEW ROYALTIES FOR BIG RADIO
[SOURCE: Reuters, AUTHOR: Sue Zeidler]
Sens. Patrick Leahy (D-VT) and Orrin Hatch (R-UT) and Reps. Howard Berman (D-CA) Darrell Issa (R-CA) introduced legislation to undo a 50-year-old exemption that lets big radio companies like Clear Channel Communications Inc and CBS Corp air songs without paying record labels or performers any royalties. For decades, the $20 billion radio broadcasting industry has paid royalties to songwriters and music publishers for the underlying rights to the songs played on the air, but have been excused from paying royalties to artists or labels for when their sound recordings were used. It was a long-held view within the music industry that radio airplay was a critical and necessary marketing expense. But with music sales in a protracted decline and with new types of broadcasters, like satellite and Web radio operators, being forced to pay performance royalties, the music industry has begun pushing for compensation from terrestrial radio.
http://www.reuters.com/article/internetNews/idUSN1852883320071219