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GAO-10-428R 1 (2010-02-26)

handle is hein.gao/gaobaanrh0001 and id is 1 raw text is: A GA O Acc jntabllty I Integrity I Reaility United States Government Accountability Office Washington, DC 20548 GAO revised this correspondence on June 7, 2010, to reflect changes in attribution and the February 26, 2010 addition of an e-supplement. To view the The Honorable John Conyers, Jr. e-supplement online, click on Chairman http://www.gao.gov/products/GAO-10-707SP. The Honorable Lamar Smith Ranking Member Committee on the Judiciary House of Representatives The Honorable Jason Chaffetz The Honorable Charles Gonzalez The Honorable Sheila Jackson-Lee The Honorable Dan Lungren House of Representatives Subject: Preliminary Observations on the Potential Effects of the Proposed Performance Rights Act on the Recording and Broadcast Radio Industries The recording and broadcast radio industries combined generated over $25 billion for the U.S. economy in 2008. These industries provide jobs for a range of skilled workers, including songwriters, producers, engineers and technicians, and radio announcers, among others. At the same time, recording studios and radio stations allow musicians, vocalists, and performers to share their talents with listeners across the nation. Through their work, the recording and broadcast radio industries contribute to the everyday American experience by creating and delivering music to people in their homes, cars, and workplaces. Beyond providing a popular form of entertainment, the recording and broadcast radio industries have helped music become a prominent feature of American culture. Music, like other forms of creative art, is protected by copyright law. Congress is considering legislation that would expand copyright protection for sound recordings. In particular, the proposed Performance Rights Act' would eliminate an exemption that currently allows analog, nonsubscription AM and FM radio (broadcast radio stations) to broadcast a sound recording without acquiring permission from and paying a royalty to the copyright holder, performers, and musicians. The act would amend the statutory license for nonsubscription transmission services to include terrestrial broadcast stations. Under the amendments to the statutory license, a radio station would pay a royalty based on its revenue and its status as a commercial or noncommercial station. (See table 1.) Furthermore, the proposed act exempts some uses of music, such as music in broadcasts of religious services and the incidental use of music by nonmusic stations. 'H.R. 848, 1116 Cong. (2009). The Senate has a companion bill-S. 379, 1116 Cong. (2009). While the House and Senate bills differ in detail, both bills include a statutory royalty with a tiered structure where all broadcast radio stations with revenue below $1.25 million would pay a flat annual fee; the proposed flat fee in each bill is different. GAO-10-428R Proposed Performance Rights Act

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