UPDATE: North Texas broadcasters speak out against Performance Rights Act

by Sarah Crisman

The U.S. Senate is scheduled to vote October 15 on the proposed Performance Rights Act (PRA), sponsored by the Recording Industry Association of America (RIAA). The bill amends federal copyright law to grant performers “equal rights to compensation,” and establish a flat annual fee in lieu of payment of royalties for less profitable or public broadcasting stations.

While the bill “provides that nothing in this act shall adversely affect the public performance rights or royalties payable to songwriters or copyright owners of musical works,” it's not necessarily good news for local radio stations or artists. The PRA would create a financial burden on local broadcasters, and serve as a detriment to the long tail of independent and unsigned musicians.

According to Chandler of CBS Radio Dallas, the PRA is an attempt by larger labels and their lobbyists to compensate for a hemorrhaging business model by taxing radio stations under the banner of “artist rights.”

“This bill is an attempt to squeeze the last drops from the label's dying business,” Chandler says, “by laying blame on their old nemesis, radio.”

While radio stations already pay an annual performance fee to license music, labels decide how that money is distributed. The business model for radio is changing -- and largely to the benefit of emerging artists. According to Dan Mason, CEO of CBS Radio, CBS is selling off all of its properties below market 15 so they can focus more on local content.

The royalties proposed by the PRA have the potential to keep local and emerging artists off the airwaves as stations become less likely to play unproven acts. It's a sure determinate against locally-focused radio programming, like KERA's forthcoming music station, KXT (set to launch November 9), and CBS's Indieverse.

“Advertisers only buy into stations that are popular and have high ratings,” Chandler said, adding that listeners will then be stuck with “more Lady Gaga and less local Dada.”

Constituents are encouraged to contact Senator John Cornyn (202-224-2934) to voice their position on the Performance Rights Act (S.379). Many state representatives, including Richardson's congressman, Pete Sessions, have openly opposed the bill.

UPDATE: The Senate Judiciary Committee approved the Performance Rights Act on October 15, 2009.