House Resolution Opposes The Idea Of Radio Performance Fee

WASHINGTON -- November 1, 2007:

Reps. Gene Green (D-TX) and Mike Conaway (R-TX) have introduced a resolution which states, "Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over-the-air," and 51 other House members have signed on.

The concept of view here is that local radio provides "free publicity and promotion" to recording artists through airplay, on-air interviews, and concert promotion. Which means that airplay is viewed as the radio station offering free advertising of the artistic wares of the musical industry.

"NAB salutes Reps. Green and Conaway and their House colleagues for formally recognizing radio airplay's enormous value to both record labels and recording artists," said NAB EVP Dennis Wharton. "The undeniable fact is that radio airplay is a musician's greatest promotional tool and generates millions of dollars in revenue annually for RIAA-member companies and performers."

Radio airplay has been the number one resource that the music industry has relied upon for many decades now here in the electronic age to promote their recording sales. And the view of charging a fee now for radio stations is a complete turn around of that view. It would be something if radio stations decided to charge the recording industry for air play and advertising via playing their music. So radio stations could if they wanted to, in mass, also turn around their view. Although not feasible, you never know what the future might come to?

Cathy Rought, Free Radio Alliance spokeswoman, responded to the resolution with a statement in recognition of Green, Conaway, and the co-sponsors.

"These members of Congress clearly understand the importance of local radio to their constituents," Rought said. "Like their colleagues in Congress over the years, these representatives see through the recording industry's rhetoric."

The Free Radio Alliance is a lobbying group formed to fight the recording industry's effort to introduce a performance right for broadcasters. Among its members are the NAB; Clear Channel, CBS Radio, and other broadcast companies; and a number of state broadcasters' associations.