STATEMENT OF CONGRESSWOMAN MAXINE WATERS

MAY 17, 2001

SUBCOMMITTEE ON COURTS, THE INTERNET,

AND INTELLECTUAL PROPERTY

OVERSIGHT HEARING, "MUSIC ON THE INTERNET"

Good afternoon. Thank you for coming today to help us understand the intricacies of the debate on Music on the Internet. The Internet presents us with some interesting and complex problems. While we're all appreciative of the tremendous advances it brings us, we have to realize that each day there is the potential for new problems. And just as we experience convenience and new opportunities, we are confronted with problems of ownership, freedom of speech, pornography, profits, taxation, and so forth. We have an obligation to confront these problems and to seek to address them in ways that are consistent with our Constitution and with the will of the people.

The problems of access to intellectual property and who pays for what are problems that we have to work to solve in the fairest way possible. Perhaps that solution will not require formal action by Congress; perhaps it will. Our job today is to explore the different interests affected and look at possible ways to integrate and consolidate those interests.

I recently spoke before the Junior Statesmen. This was a group of about 400 kids from several different high schools. I touched on a variety of issues, including crime, education, and election reform. But the biggest question these future leaders had for me was, "Where do you stand on Napster?" My grandson had recently been talking with me about this issue, and I told these Junior Statesmen that I favored their ability to have access to this music.

Since then, I have been following the debate on Napster, and I now realize that there are legitimate questions about the people who create, produce, and market music and their ability to make a living. I'm sympathetic to the kids-I do represent a district of working class and poor people, and I'm in favor of their ability to get free products.

But at the same time, we need to balance that with economic realities. I understand that the mechanical royalty a songwriter makes on the sale of a song is half of 7.55 cents, with the other half going to the publisher. Less than four cents off of a CD that sells for $16, $17, $18! So certainly, there needs to be a consideration of the legitimate concerns of all the parties involved.

Having said that, how do you do it? I can tell you that I don't know. But I'm convinced the dilemma must be solved. And I again thank all of you for coming here today to present us with some strong ideas of how to solve this dilemma.