According to a letter from the Copyright Office that has recently been made public, the economic troubles of broadcasters, which have been used to argue against the imposition of a performance royalty for the use of sound recordings by radio stations, are cyclical and are largely over.  Thus, argues the letter, the improvement in the fortunes of radio stations merits a reexamination of whether the Performance Rights Act imposing such a royalty should be adopted.  The letter contrasts the reportedly good news for radio broadcasters with the Copyright Office’s view of the plight of the record industry, which is deemed to be more permanent, based on the pervasive nature of illegal downloading.  Given the Copyright Office’s concern with the fate of the record companies, and their need to establish a more stable revenue source through payments of fees from the users of music to replace the sales of music that have declined so dramatically, the Copyright Office suggests that further review, with an eye toward adoption of the performance royalty, is merited.  This letter was addressed to the US General Accounting Office, which in February issued a report concluding that the imposition of a performance royalty would have a negative impact on the radio broadcast industry, as it has been hard hit by both fundamental changes in competition and from downturns in the business cycle, and that the imposition of the royalty would cause some stations to go out of business and others to cease playing music.  But the GAO promised a further review of certain issues, and the Copyright Office had not weighed in before the initial GAO report, this letter was prompted. 

The Copyright Office has long been on record as supporting the imposition of a performance royalty in sound recordings in the United States – not just for radio, but for all industries that use music.  This would match the performance royalty in the musical composition, as collected by ASCAP, BMI and SESAC, for the public performance of musical compositions not only by radio, but also by television, cable television, in bars and restaurants and stadiums, and in virtually any other location where music is used in a public setting.  Thus, it should come as no surprise that the Copyright Office would take the position that it does in this letter.  What is perhaps surprising is that the letter seems to go beyond a legal document setting forth the legal justifications for the imposition of the royalty, and instead has the tone of an advocacy piece that takes a firm position in support of the recording industry over the interests of broadcasters, and one which advocates only the position of the recording industry.Continue Reading Copyright Office Issues Letter In Support of Broadcast Performance Royalty – Suggests that Economic Comeback for Radio Makes Royalty More Affordable