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The Summer of Copyright Part 2: The “Music Bus”

This guest column by broadcast law attorney David Oxenford was first published in the Broadcast Law Blog.


The House of Representatives Judiciary Committee last week finished its second hearing on music licensing (written witness statements and a link to the webcast can be found here). Congressional hearings usually are not in-depth proceedings looking to establish detailed facts as done in a hearing in a court proceeding. Instead, they are formalized proceedings where parties get to make their canned statements setting out positions on issues. Congressional representatives themselves make statements setting out their positions on the issues, and ask pointed questions to selected witnesses to reinforce those positions. Minds are rarely changed, and the truly undecided are rarely illuminated on the issues. But the hearings do serve to set out the issues that are going to be considered by the Committee in ultimately crafting legislation. And last week’s hearing did just that – highlighting the issues likely to be considered in legislation promised by the Committee Chair, Representative Goodlatte, who promised an omnibus bill on music licensing, dubbed the “Music Bus,” to address the many issues on the table.

Note that any bill that is ultimately introduced will address many seemingly minor issues – details of process and procedure that don’t make the headlines. But the big issues are the ones that will cause the most industry argument before the lawyers work out the details. It’s also important to note that it is very late in the legislative calendar right now, with the Senate not putting the same emphasis on copyright issues as it the House. With elections coming up in the Fall, and scheduled upcoming summer recess, Congress has much must-pass legislation that will fill up their legislative days before the next Congress is sworn in in January. The start of a new Congress means that all legislation will have a fresh start. Thus, any Omnibus bill that is introduced this year will most likely not become law, but instead will set the agenda for discussions for next year in the new Congress. Certainly, there may be more limited bills that sponsors may try to get stuck on other legislation that must move before the end of the Congressional session, so interested parties will remain vigilant during the final days of this session of Congress. But what are the issues that are on the table for inclusion in any Music Bus?

The issues are many, and they are being considered all over Washington in diverse agencies and other forums, as we wrote in our first Summer of Copyright articles here. But some of the issues have arisen consistently in all of the different venues that are considering these issues. So here is a list of the issues that appear to be priorities of certain players in the music universe and of some of the Congressmen on the Committee:

A couple of other issues raised by panelists are worth mentioning, though seemingly less likely to make it into Congressional legislation. A representative of independent music labels complained about the dominance of the big record labels, and suggested that there be a compulsory license for the use of sound recordings by interactive music services – seemingly as some of these services negotiate deals with big labels and offer the indies a lesser take-it-or-leave it royalty rates for those services. Having one rate would force all labels to agree on the same royalty, so that the big guys don’t get an advantage. See our article here on the impact that a lack of a compulsory license for interactive services has on the availability of music to those services.

Both radio and TV representatives have suggested the SESAC be brought under the same consent decrees as ASCAP and BMI. Member of both the TV Music Licensing Committee and the Radio Music Licensing Committees have filed antitrust lawsuits to accomplish this end (see our article here). Whether Congress will take up this issue is questionable, as it is being fought in the courts. But it has been mentioned in the hearings.

Finally, tracking systems to determine what songs have been played by a music service, and who should get a royalty for that play, is another issue that has come up many times, but is one that may be difficult to legislate. Seemingly, the stakeholders themselves need to get together to agree on a universal standard that everyone will use – and it must be easy enough that parties will in fact use it. As some parties may see a competitive advantage in not making all information about copyright ownership and representation for licensing purposes available to all, this may not be an issue on which consensus can be as easy to reach as it might seem. The cost considerations of building a universal, accessible and accurate database are also not insubstantial. But as artists complain about the accuracy of their royalty payments, there may be some push to do something on this issue as well.

There will no doubt be many other issues as well, but these are the big issues most likely to be covered by legislation. Obviously, these are significant issues that affect all of the music industry. And they are issues that are not easily resolved, as many stakeholders have differing and sometimes inconsistent and contradictory positions on these issues. Watch as these make their way through Congressional committees this year, and likely in the coming years as well.

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