The House Judiciary Committee today passes HR 848

Radio-fees bill passes committee as stations stage protest

Deb Price / The Detroit News

Washington -- As a 200-person "Save Black Radio" rally was held in Detroit, the House Judiciary Committee today passed a controversial bill to impose a performer's fee on over-the-air radio stations.

The Performance Rights Act would change law so that AM and FM radio stations would pay performers to play their songs, as is true of satellite, cable and Internet music services. All four music platforms pay songwriters for use of their work.
The final vote was 21 to 9. The bill moves to the House floor for a full vote. The Senate has a companion bill pending action.

The committee approved by voice vote a "manager's amendment" by Chairman John Conyers, D-Detroit, to try to address critics -- including Radio One Detroit -- who contend the bill threatens the survival of minority and women-owned stations during rocky economic times.

"This is not a revolutionary concept," Conyers said of the proposed performer's fee for AM and FM stations. "Everybody gets paid for their creativity and their work."
About 200 marchers joined local radio hosts Mildred Gaddis and Reggie Reg outside of Conyer's office in Detroit, chanting, "No to the bill on the hill," and, "Save black radio," as supporters honked as they passed. Branding the new fee a "tax," many critics argued it could destroy small broadcasters, including minority and women-owned stations that provide valuable diversity on the airwaves.

"This is crucial; this is critical," Gaddis, host at WCHB-AM (1200), said. "(Conyers) is generally 95 percent of the time on the right side. He's on the wrong side on this one."

Conyers and other committee members said their offices had been flooded by critics of the bill.

Conyers said he shares the concern about the potential impact of new fees on small broadcasters.

As a result, he proposed changes that were agreed to that create a sliding fee scale for small broadcasters and delays the start date of payments:
• Stations with annual gross revenues of less than $100,000 would pay $500 each year. Those with gross revenues between $100,000 and $500,000 would pay $2,500. Those between $500,000 and $1.25 million would pay a royalty fee of $5,000 per year.
In the original bill, stations with gross revenues of less than $1.25 million would pay a flat fee of $5,000.

Conyers said the change to a sliding fee would affect 90 percent of all minority-owned radio stations, and 77 percent of all radio stations.

• The fees wouldn't start for three years if a station's revenues are less than $5 million annually, and for 1 year for others.
Talk radio stations playing only snippets of songs are exempt, as are broadcasts of religious services. Non-commercial stations, such as college stations, would pay $1,000.

Larger stations would work with performers to negotiate fees, which would then be approved by Copyright Royalty Board. A copyright arm of the Library of Congress, the royalty board would set rates when agreements can't be reached.
Conyers also asked for a Government Accountability Office study of the bill's potential impact on radio broadcasters, as well as performing artists and copyright holders.

But Conyers' changes weren't enough to quiet concerns of some committee members.
The ranking Republican on the committee, Lamar Smith of Texas, urged delay until members could read the GAO report.

Rep. Dan Lungren, R-Calif., offered an amendment to delay the vote on the bill for six months until the GAO report is available. His amendment was defeated, 20 to 10.
"Spike" of "Mojo in the Morning on WKOI-FM (95.5) also joined protestors in Detroit, saying that the bill would affect all radio stations, big and small. His station is owned by Clear Channel.

"We've already had a 50 percent decline in revenues in two years," he said. "It's just going to change free radio as we know it."
The Detroit City Council also weighed in, discussing a resolution Tuesday that supports the arguments made by black radio stations. The resolution, introduced by Kwame Kenyatta and JoAnn Watson, failed and was referred to an entertainment committee.

"Many of our artists haven't gotten their due, but it should be the record companies, not the stations, who should pay," said Watson, who has hosted the "Hello Detroit" radio show for more than 20 years. "(Small) black-owned stations will go out of business. They will close the stations down, I'm telling you."
But Councilwoman Martha Reeves said she wants to be fairly compensated. Reeves, of Motown fame, said she's a part of a group of about 300 artists who helped initiate Conyers' bill. She added during Tuesday's session that stations in other countries such as England pay the artists, and it should be the same in the United States.
"The artists whose records that are being played, they should be paid," Reeves said. "I'm representing my career and legacy. We've had music played for 40 years, and we're not being paid for it. America should step up to the plate and be responsible. We deserve this money."

Critics argue that it's unfair to charge them a royalty fee when they can't charge performers a fee for the advertising they grant them that then turn into sales of CDs and concert tickets.

"Broadcasters bring value to the recording artist by airing their songs," said Karole White, president and CEO of the Michigan Association of Broadcasters.

"Many of our members have awards given to them by artists, by recording companies thanking them for making them the stars they are today. We are prohibited from charging anyone for the music that we play," she added.
dprice@detnews.com (202) 662-8736 Detroit News Staff Writers Susan Whitall, Catherine Jun and Darren