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June IP Breakfast Club Debates Performance Right

WASHINGTON June 16, 2011- Broadband Breakfast gathered leading experts Tuesday to discuss a performance right for broadcasting at the June installment of the Intellectual Property Breakfast Club.

Under current copyright regulations, when a song is played on terrestrial radio the writer of the song gets paid fee called a broadcast royalty. The singers and musicians that perform the song, however, get no such payment. Performance royalties are paid to singers from web-based radio stations along with cable companies that offer music channels.

Broadband IP Breakfast: A Performance Right for Broadcasting: Will Radio Begin to Pay?

WASHINGTON June 16, 2011- Broadband Breakfast gathered leading experts Tuesday to discuss a performance right for broadcasting at the June installment of the Intellectual Property Breakfast Club.

Under current copyright regulations, when a song is played on terrestrial radio the writer of the song gets paid fee called a broadcast royalty. The singers and musicians that perform the song, however, get no such payment. Performance royalties are paid to singers from web-based radio stations along with cable companies that offer music channels.

 

Broadband IP Breakfast: A Performance Right for Broadcasting: Will Radio Begin to Pay?

David Oxenford, partner at the law firm of Davis Wright Tremaine, LLP explained that since web broadcasters were unable to band together and work out a single royalty rate, each individual broadcaster must make its own deal with SoundExchange, the organization which collects royalties. Generally, web broadcasters pay roughly one fifth of one penny per song per listener as a broadcast royalty according to Oxenford.

“Last year we paid nearly $600,000 in royalties for performers and we are a small station,” said Brian Gantman, Government Relations Director for the Education Media Foundation that runs AIR 1 Radio Networks. “Pandora, one of the most popular web radio stations had a loss of $6 million due to the high cost of royalties it had to pay out.”

Sylvia Strobel, Executive Director of the Alliance for Community Media explained that a number of Native American web stations have been forced to shut down due to their inability to pay royalties.

“This is music that wouldn’t get out there if not for these stations, but they just cannot afford to pay the royalties,” Stobel said of these Native stations.

Many musicians have requested that broadcast royalties be extended to the performers since they contributed to the value of the song as much as the writers did. Those in opposition claim that the playing of the songs on the radio acts as a method of promotion for performers who then earn royalties from the sale of records and ticket sales at concerts.

“Of the 30 countries that make up the Organization for Economic Co-operation and Development 29 of them have performance rights,” said John Simson, former Executive Director of SoundExchange. “The United States is the only nation which does not give performers the right to obtain royalties from their performances.”

Gantman went onto say that if Congress passed a broadcast royalty for terrestrial radio, nearly a third of minority owned stations would have to cease operations due to their inability to pay the royalties.

Gantman also responded to Simson’s comment, saying that in many other counties, the governments provide subsidies to the radio broadcaster which allow for the payment of royalties.

Simson acknowledged that radio does act as a method of promotion and some performers may choose to not request a royalty payment but stated that performers should be given the choice.

Many other nations also refuse to remit performance royalties to American performers because the U.S. does not collect such royalties.

“In France while the royalties are collected for the performance the portion of the fee which would be given to the performer is instead given to fund cultural programs,” said Simson. “This leaves millions in revenue which the performers do not collect.

 

Rahul Gaitonde has been writing for BroadbandBreakfast.com since the fall of 2009, and in May of 2010 he became Deputy Editor. He was a fellow at George Mason University’s Long Term Governance Project, a researcher at the International Center for Applied Studies in Information Technology and worked at the National Telecommunications and Information Administration. He holds a Masters of Public Policy from George Mason University, where his research focused on the economic and social benefits of broadband expansion. He has written extensively about Universal Service Fund reform, the Broadband Technology Opportunities Program and the Broadband Data Improvement Act

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Broadband Breakfast on June 15, 2022 – Broadband Breakfast Live Online from Fiber Connect in Nashville

Join conference attendees in conversation on key connectivity issues.

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Photo of Gaylord Opryland, home of Mountain Connect by Ken Lund used with permission

Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. Watch the event on Broadband Breakfast, or REGISTER HERE to join the conversation.

Wednesday, June 15, 2022, 12 Noon ET – Broadband Breakfast Live Online from Fiber Connect in Nashville

Join a conversation with attendees at the annual Fiber Connect conference in Nashville, Tennessee.

Panelists:

  • Guests have been invited.
  • Drew Clark (presenter and host), Editor and Publisher, Broadband Breakfast

Drew Clark is the Editor and Publisher of BroadbandBreakfast.com and a nationally-respected telecommunications attorney. Drew brings experts and practitioners together to advance the benefits provided by broadband. Under the American Recovery and Reinvestment Act of 2009, he served as head of a State Broadband Initiative, the Partnership for a Connected Illinois. He is also the President of the Rural Telecommunications Congress.

WATCH HERE, or on YouTubeTwitter and Facebook.

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTubeTwitter and Facebook

See a complete list of upcoming and past Broadband Breakfast Live Online events.

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Broadband Breakfast on May 25, 2022 – Broadband Breakfast Live Online from Mountain Connect in Colorado

Join conference attendees in conversation on key connectivity issues.

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Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. Watch the event on Broadband Breakfast, or REGISTER HERE to join the conversation.

Wednesday, May 18, 2022, 12 Noon ET – Broadband Breakfast Live Online from Mountain Connect in Colorado

Join a conversation with attendees at the annual Mountain Connect conference in Keystone, Colorado.

Panelists:

  • Guests have been invited.
  • Drew Clark (presenter and host), Editor and Publisher, Broadband Breakfast

Drew Clark is the Editor and Publisher of BroadbandBreakfast.com and a nationally-respected telecommunications attorney. Drew brings experts and practitioners together to advance the benefits provided by broadband. Under the American Recovery and Reinvestment Act of 2009, he served as head of a State Broadband Initiative, the Partnership for a Connected Illinois. He is also the President of the Rural Telecommunications Congress.

WATCH HERE, or on YouTubeTwitter and Facebook.

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTubeTwitter and Facebook

See a complete list of upcoming and past Broadband Breakfast Live Online events.

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Broadband Breakfast on June 29, 2022 – How to Reform the Universal Service Fund

Critical USF programs for expanding broadband are struggling to maintain revenue streams.

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Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. Watch the event on Broadband Breakfast, or REGISTER HERE to join the conversation.

Wednesday, May 18, 2022, 12 Noon ET – How to Reform the Universal Service Fund

The Universal Service Fund has been struggling to fund its programs promoting broadband connectivity across the country. Several policy experts have suggested fundamental changes to the structure of USF’s funding mechanisms to revitalize the program. Should the Federal Communications Commission broaden the program’s jurisdiction to include broadband revenues? Can the mission of USF survive without significant structural change?

Panelists:

  • Guests have been invited.
  • Drew Clark (presenter and host), Editor and Publisher, Broadband Breakfast

Drew Clark is the Editor and Publisher of BroadbandBreakfast.com and a nationally-respected telecommunications attorney. Drew brings experts and practitioners together to advance the benefits provided by broadband. Under the American Recovery and Reinvestment Act of 2009, he served as head of a State Broadband Initiative, the Partnership for a Connected Illinois. He is also the President of the Rural Telecommunications Congress.

WATCH HERE, or on YouTubeTwitter and Facebook.

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTubeTwitter and Facebook

See a complete list of upcoming and past Broadband Breakfast Live Online events.

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