datamusicata

Many people seemed confused as to what a performance right organization is so I wanted to clarify as much as I could who they are and what they do. Started in the last century, ASCAP (www.ascap.com ) and then BMI (www.bmi.com) (and then SESAC (www.sesac.com ) and finally Sound Exchange (www.soundexchange.com ) are all organizations that exist solely to collect money for the use of work created by writers and publishers of published work.

You must join these organizations and then you must give them a list of all the songs that you have created or published. Once they have that information, they can go about the business of collecting any money that has been generated by the use of this music.

And you need to join these organizations. This is how you begin to generate actual income from the music you create. Don’t be lame...join.

The rates for the use of the music is complicated and changes periodically so the best thing that you can do is go to the websites and look up the current rates. By the way, many people negotiate different rates for different projects, even tho there are statutory rates, you as the owner of the copyrighted material may opt to negotiate a lower rate in an effort to get you music into a film or tv project or on an album by a big name. Everything is negotiable.

My pal, Steve Garvan (www.garvanmanagement.com), sent me this post of frequently asked questions and I thought it would help us all so here it is:

Frequently Asked Questions about Performance Right



What is a performance right?

A performance right is part of the copyright law that provides performers and recording owners a royalty when their work is played publicly, such as on the radio.



Do artists currently receive a performance right?

Performers in the United States only have a digital performance right for their recordings when they are played on satellite radio, cable services and Internet radio. Performers are not compensated for their creativity and talent when their work is broadcast on the AM and FM dials.



Has Congress introduced performance right legislation that would include broadcasters?

Yes. On December 18, 2007, Senators Patrick Leahy (D-VT) and Orrin Hatch (R-UT) and Representatives Howard Berman (D-CA) and Darrell Issa (R-CA) jointly introduced the “Performance Right Act of 2007.” The legislation would correct the loophole in the copyright law by removing the AM and FM broadcaster exemption to assure that all platforms are treated equally and pay a performance royalty to artists.



Why Now?

It has always been unfair that radio built a major industry based on broadcasting recordings without compensating the artists. Today, the music industry, and the ways in which consumers access music, is dramatically changing. The marketplace has introduced new platforms for listening to music such as: Internet, satellite and cable – all of which pay a performance right. Additionally, digital distribution is changing business models for the entire industry. “That’s the way it’s always been” is no longer an excuse. Corporate Radio should be held to the same standards, and play by the same rules as its competitors and pay artists and labels fair market value for their music.



Does anyone pay a performance right?

Yes, Corporate Radio’s competitors – Internet, satellite, and cable radio – all compensate artists for their work when it is played. Currently, when American music is played in foreign countries, they withhold royalties to protest the fact that United States radio stations do not honor a performance right for foreign artists. Other countries that do not pay a performance right include: China, Iran and North Korea.



Doesn’t radio play “compensate” artists by boosting record sales?

Radio’s promotional value is on the decline. New music distribution platforms – such as satellite, cable and internet radio – provide additional ways for consumers to enjoy music. With the exception of AM and FM radio, each platform pays for the recordings they use regardless of any promotion that might occur as a result, including broadcasters who simulcast their programming on the Internet. However, this is about simple fairness: the artists who bring the music to life, who attract listeners to a station, and who make it possible for radio to make money by selling advertising deserve to be compensated when a radio station uses their music to compensate itself.



Are there academic studies about radio’s promotional value?

Yes. In fact a January 2007 study conducted by the University of Texas at Dallas[1] found that, “Radio play does not have the positive impact on record sales normally attributed to it.”



Will songwriters be affected if artists are granted a performance right?

No, musicFIRST (Fairness in Radio Starting Today) fully supports the current system for compensating songwriters and music publishers. musicFIRST (Fairness in Radio Starting Today) believes that artists should be paid just as songwriters and music publishers are paid, with no reduction or negative impact on these other creators who deserve royalties. All are essential to the creation, performance and enjoyment of music and this is how it works in every other Western, developed country. There is no valid reason why it should be different in the United States.



How does the lack of a performance right for music compare to other media?

Sound recordings, such as songs played on the radio, are the only performable copyrighted works that do not have such a performance right in the United States. Books, plays, dance performances, movies and TV programs all have a full performance right.



How does this impact the recent webcasting rate issue?

We believe that artists should be afforded a performance right on all types of radio. It isn’t fair that webcasters, satellite radio and cable radio are singled out. Corporate Radio should be held to the same standards as its competitors.



Will musical artists in the United States ever receive compensation for their music when it’s played on AM and FM radio?

Yes, but only with your help. Speak out and urge Congress to support the “Performance Right Act of 2007” (S. 2500 and H.R. 4789) and give artists the right they deserve. Take action today and support a performance right for all musicians.





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[1] “Don’t Play it Again Sam: Radio Play, Record Sales, and Property Rights,” Stan J. Liebowitz, School of Management, University of Texas at Dallas, January 5, 2007.