Opening Statement

     Statement of Ranking Member John Conyers, Jr.
Hearing on:  "Music Licensing Under Title 17 Part One"
Subcommittee on Courts, Intellectual Property, and the Internet

Tuesday, June 1, 2014 at 10:00 A.M.
2141 Rayburn Building

Today we will continue to assess the current music licensing system and explore if there are ways that the system can be improved. This is the first of two hearings we will have this month to study these issues and I support multiple hearings because there are many complex interrelated issues to examine.

     There have been many technological developments that have changed the way artists are discovered and consumers listen to music. Music is now accessible to the public in whatever format is desired, at any time, and on demand.  And in addition to the availability of over-the-air, terrestrial broadcasts – meaning the AM/FM radio that many of us grew up listening to – Internet radio has become a major source of music for many listeners. These developments will help shape the discussion we have today.

     There are several important things we should address during today’s hearing and the hearing later this month. First, as we discuss the various issues presented by these technological developments, it is essential that we consider the potential impact that our decisions will have on creators so that we can ensure that they are not adversely affected by any decisions that we make. Among other things, this is true for the process by which royalty rates are set.  That process should be inherently fair and competitive. We will hear from some of the witnesses today that the current process is unfair and that, as a result, the royalty rate does not provide creators with a fair market value for their work. For example, the current rate structure for determining songwriter royalties prohibits introduction of evidence of the rates that performers obtain when music is played over digital radio. This is one possible arena for legislative change and my colleagues – Representatives Collins and Jeffries – have introduced The Songwriter Equity Act to fix this particular problem.  I would like to hear the witnesses discuss that particular fix and what additional changes, if any, should be made to the current royalty system to address their concerns.

     Second, musicians and singers across all musical genres depend on their royalties, which are often their only compensation for their work. Yet our current system does not ensure payment for creators when their works are used by others. This is an injustice that we need to address. For this reason, I worked with Congressman Greg Holding from North Carolina to introduce H.R. 4772, the Respecting Senior Performers as Essential Cultural Treasures Act (RESPECT Act). This bill would address a loophole that allows digital radio services to broadcast music recorded before February 15, 1972 without paying anything to the artists and labels that created it. This bill would ensure that legacy artists and copyright owners of all works – whether recorded before or after February 15, 1972 – are compensated by those who benefit from the federal statutory license. The current failure to pay these legacy artists is shameful and particularly harmful to communities like Detroit, which has so many artists who were at the forefront of the industry and should be compensated fairly for their groundbreaking work. Taking someone else’s labor and not paying is simply unfair.  This bill simply seeks basic fairness for artists who created sound recordings before 1972.

     A final – and related issue that must be examined is whether our efforts to improve the music licensing scheme will be, in fact, truly fair if it does not include performance rights for sound recordings. As everyone here knows I am a strong supporter of artists and believe that the current compensation system on terrestrial radio – by which I mean AM and FM radio  –  is not fair to artists, musicians or the recording labels. When we hear a song on the radio, the individual singing the lyrics or playing the melodies receives absolutely no compensation. Every other platform for broadcast music – including satellite radio, cable radio, and Internet webcasters – pay a performance royalty.  Terrestrial radio is the only platform that does not pay this royalty. This exemption from paying a performance royalty to artists no longer makes any sense and unfairly deprives artists of the compensation they deserve for their work.

     We have a diverse panel of experts with us today.  I look forward to hearing from them and to working together with my colleagues to ensure that the music licensing process is fair and does not have unintended consequences that harm artists, songwriters or producers.”