Judiciary HomepageASCAP, on behalf of its more than 65,000 songwriter and publisher members, strongly supports H.R. 1506.
ù This legislation is needed to preserve the health of the music industry in the digital age, by granting a new performance right in sound recordings which will benefit record companies and performing artists. (ASCAP is especially concerned about the economic well-being of performing artists, and urges the strongest possible safeguards to ensure that they receive their just rewards.) At the same time, the new right must not in any way diminish or affect the existing rights of songwriters and music publishers.
ù Last year's May 11 Agreement, supported by the entire music industry, protected everyone. It had appropriate safeguards to ensure that the use of music in interactive digital transmissions did not come entirely under the control of the record companies, and so allow them to be "gatekeepers" over that use of music. It also insured that rights and royalties songwriters and music publishers receive under existing law would not be harmed or diminished in any way as a result of the granting of this new right.
ù H.R. 1506 does exactly what the May 11 Agreement would have done. It protects our existing rights against erosion, and prevents any one element of the music industry from completely controlling the area of use which we all envision will become so important in the future -- interactive digital transmissions.
ù H.R. 1506 protects us by granting a performance right to record companies which is equal to, but not greater than, our right of public performance. It includes adequate safeguards protecting the record companies against the loss of record sales in the digital world. It ensures that well established user industries will not be required to pay new, additional amounts for the use of music. It assures that the mechanical rights which form an important stream of income for songwriters and music publishers will not be threatened by this new technology. And it ensures that our rights will not be diminished in any respect as a result of the new rights being granted.
ù For all these reasons, we strongly support H.R. 1506.
Mr. Chairman and Members of the Subcommittee, good morning. My name is Way land Holy field. I am a songwriter. I am also a member of the Board of Directors of ASCAP, and appear on behalf of ASCAP's more that 65,000 songwriter and music publisher members to state our strong support for H.R. 1506.
At the outset, Mr. Chairman, let me convey the warmest regards of ASCAP's President and Chairman, Marilyn Bergman. As you know, Marilyn would have like to have been here herself, testifying in support of your legislation. Unfortunately, today is the day of ASCAP's annual membership meeting in Nashville, and Marilyn's presence there is required.
Mr. Chairman, I want to express, on behalf of all of ASCAP's members, our deepest appreciation to you for your introduction of this much-needed legislation. As you know, the advent of the digital age raises the necessity for a performing right in sound recordings. New methods of digital transmission require such a right to preserve the health of the music industry. The danger of new digital transmission technologies to the traditional method of record sales argues for a performing right in sound recordings, as is contained in your bill. Its direct beneficiaries, of course, will be the record companies and performing artists. I should add that we are especially concerned about the economic well-being of the performing artists, for, overwhelmingly, they are at the economic mercy of others. We are therefore thankful that your bill would protect their rights, and urge the strongest possible safeguards to ensure that the performing artists get their just rewards.
The fact that this new right is needed does not mean that it should be granted without qualification. To the contrary, the music industry works in a complex web of interrelationships, and there is one overriding concern that we have -- the new right being granted should not in any way diminish or affect the existing rights of songwriters and music publishers. After all, a song can exist without a recording, but a recording cannot exist without a song.
When legislation to grant this new right was introduced by others in the last Congress, we could not support it, for it would have harmed our rights. At your urging and the urging of many of your colleagues, we sat down with representatives of all the other affected parties in the music industry, and reached agreement on draft legislation which we could all live with and which would grant the new right we all support -- this was the "May 11 Agreement" we have all heard so much about. The May 11 Agreement was supported by the entire music industry.
Unfortunately, your predecessor as Chairman did not agree with it, and refused to introduce it. Other parties then backed off of the Agreement, a most unfortunate occurrence, for if they had kept faith with it, we believe this legislation would now be the law of the land.
The May 11 Agreement addressed two of the major concerns we had with the granting of this new right. First, it had appropriate safeguards to ensure that the use of music in interactive digital transmissions did not come entirely under the control of the record companies, and so allow them to be "gatekeepers" over that use of music. Second, it had appropriate safeguards to ensure that the rights and royalties songwriters and music publishers receive under existing law would not be harmed or diminished in any way as a result of the granting of this new right.
Mr. Chairman, your bill does exactly what the May 11 Agreement would have done. It grants record companies and performing artists the new right they need in the digital age. It also protects our existing rights against erosion, and prevents any one element of the music industry from completely controlling the area of use which we all envision will become so important in the future -- interactive digital transmissions.
H.R. 1506 achieves these goals in many ways. First, it is forward-looking. It grants the new right of public performance in sound recordings for digital subscription transmissions, the types of performances for which performing artists and record companies need protection. Second, it ensures that the performing artists will get a share of the proceeds -- a point which we have emphasized from the first, and which was so sorely lacking in last year's bill. Indeed, we believe that if we had not insisted on the point, the legislation would never have had any protection for performing artists. We would urge the strongest possible safeguards to ensure that the performing artists actually do get their hands on the royalties this new right will generate.
H.R. 1506 protects us by granting to record companies a right which is equal to, but not greater than, our right of public performance. Because, as a practical matter, songwriters must license their performing rights through collective licensing organizations like ASCAP, and because those collective licenses must, as a matter of law, be nonexclusive, it is vital that the record companies not have an unlimited exclusive right of public performance. If they did, they would be in a superior position, able to control completely the use of music in these new areas. Your bill grants them a right to be paid, but not a completely exclusive right -- they would therefore be on a par with us in this regard. At the same time, H.R. 1506 includes adequate safeguards protecting the record companies against the loss of record sales in the digital world. And your bill also assures that the mechanical rights which form an important stream of income for songwriters and music publishers will not be threatened by this new technology. We applaud your wisdom in crafting H.R. 1506 to protect all elements of the music industry, and to prevent the possibility of a takeover of the music business in the interactive world by one element of the industry.
H.R. 1506 also insures that existing user industries, such as broadcasters and music service operators, which use music and which have, over the years, developed well established economic relationships with us, will not be required to pay new, additional amounts for the use of music. And it ensures that our rights will not be diminished in any respect as a result of the new rights being granted.
As you know, Mr. Chairman, H.R. 1506 differs from the Senate bill on the same subject, S. 227 -- a bill whose purpose we wholeheartedly support, but whose details do not protect us as your bill does. In recent weeks, we have been once again discussing with the record companies and the other interested parties some form of agreement which will reconcile our differences and allow us to move forward as a unified industry, as we did for too brief a time last year after the May 11 Agreement. We have made some progress in reaching that goal, and we hope we realize it fully soon. If we do so, Mr. Chairman, it is fair to say two things: First, the parties could not have come to the table were it not for your wisdom in crafting and introducing H.R. 1506. Second, any agreement we may reach will embody the basic principles of protecting all parties and preventing any one group from controlling these new uses of music -- principles that you have espoused in H.R. 1506.
Mr. Chairman, I again want to repeat, in the strongest terms, our support for H.R. 1506. We will do everything we can to help you enact this much-needed legislation.