
by Nate Anderson, Ars Technica
Music labels and radio broadcasters can’t agree on much, including whether radio should be forced to turn over hundreds of millions of dollars a year to pay for the music it plays. But the two sides can agree on this: Congress should mandate that FM radio receivers be built into cell phones, PDAs, and other portable electronics.
The Consumer Electronics Association, whose members build the devices that would be affected by such a directive, is incandescent with rage. “The backroom scheme of the [National Association of Broadcasters] and RIAA to have Congress mandate broadcast radios in portable devices, including mobile phones, is the height of absurdity,” thundered CEA president Gary Shapiro. Such a move is “not in our national interest.”
“Rather than adapt to the digital marketplace, NAB and RIAA act like buggy-whip industries that refuse to innovate and seek to impose penalties on those that do.”
But the music and radio industries say it’s a consumer-focused proposition, one that would provide “more music choices.”
A grand bargain
Autumn, “that season of mists and mellow fruitfulness,” approaches, and as Congress returns soon from recess, it will find its autumn agenda packed with supplicants who want the government to put its stamp on private negotiations. Google and Verizon famously released their own legislative framework on network neutrality earlier this month, and the broadcasters and music labels are nearing completion on a similar framework of their own.
In this case, the framework concerns public performance rights. Radio broadcasters and music labels are at each other’s throats over the question of whether radio ought to pay performance rights to labels or artists when it plays their music on the air (currently, only songwriters get paid, not artists or labels). A bill percolating in Congress, the Performance Rights Act, would rationalize performance rights in the US; satellite radio and webcasters currently pay full performance fees to labels or artists, but radio does not, thanks to a longstanding exemption in copyright law.
Story continues . . .


