2009-01

Support for the Performance Rights Act

Candelaria-Reardon (IN) Introduced April 09 Executive Meeting; Ratified

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, BE IT 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
and ratified at the NHCSL 2009 Annual Meeting held in Santa Monica, California
on November 21st, 2009.