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Bill to Provide Equal Treatment Between Music Distribution TechnologiesWASHINGTON, DC – Rep. Howard Berman (D-CA) and Rep. Mary Bono (R-CA) have introduced legislation to address current inequities in the Section 114 compulsory license of the Copyright Act. H.R. 5361, The Platform Equality and Remedies for Rights Holders in Music Act of 2006 will be known as the PERFORM Act. Companion legislation was introduced in the Senate by Senators Feinstein, Graham and Frist.
"One of America’s greatest treasures is its intellectual property," said Rep. Berman. "People are listening to more music in more places than ever. Yet the music industry is in crisis, with its revenue declining from $14.5 billion in 1999 to $12.1 billion in 2004"
Cable, satellite, and Internet radio services are granted a compulsory license to broadcast (perform) music as long as they pay the statutorily defined fee (or another negotiated rate) and abide by the terms and conditions of the government license. However, the terms of the license are different. This bill is designed to create parity among the technologies so they may compete on the same playing field to provide consumers their choice of music, anytime, in any place, in any format.
Certain features of the new devices bypass the marketplace by allowing consumers to turn broadcasts into downloads, creating an unlicensed music library without adequately paying the artist. The PERFORM Act seeks the appropriate balance between fostering innovation of technology and ensuring rightful compensation to artists.
"Our goal in introducing this legislation is to bring attention to the importance of this issue, which impacts greatly upon the music industry," said Berman. "To preserve the legitimate music marketplace, we must reserve downloading capability for those services that appropriately pay for it."
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