NAB Executive Vice President Dennis Wharton released a statement today in
response to the introduction of legislation requiring America's hometown
broadcasters to compensate the foreign-owned record labels for radio airplay of
music. The House version of the bill was introduced by Reps. Howard Berman
(D-CA) and Darrell Issa (R-CA). Companion legislation was offered in the Senate
by Sens. Patrick Leahy (D-VT) and Orrin Hatch (R-UT).
Countering today's
legislation is House
Concurrent Resolution 244, introduced in late October, which states,
"Congress should not impose any new performance fee, tax, royalty, or other
charge relating to the public performance of sound recordings on a local radio
station for broadcasting sound recordings over-the-air, or on any business for
such public performance of sound recordings." To date, the resolution has
garnered the support of 119 members of the House of Representatives.
"After decades of
Ebenezer Scrooge-like exploitation of countless artists, RIAA and the
foreign-owned record labels are singing a new holiday jingle to offset their
failing business model," said Wharton. "NAB will aggressively oppose this brazen
attempt to force America's hometown radio stations to subsidize companies that
have profited enormously through the free promotion provided by radio
airplay."