Digital Performance Right in Sound Recordings Act of 1995 : hearings before the Subcommittee on Courts and Intellectual Property of the Committee on the Judiciary, House of Representatives, One Hundred Fourth Congress, first session, on H.R. 1506 ... June 21 and 28, 1995
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Digital Performance Right in Sound Recordings Act of 1995 : hearings before the Subcommittee on Courts and Intellectual Property of the Committee on the Judiciary, House of Representatives, One Hundred Fourth Congress, first session, on H.R. 1506 ... June 21 and 28, 1995

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' A RIGHT INDIGITAL PERFORMANCE ^ SOUND RECORDINGS ACT OF 1995 Y 4, J 89/1:104/35 Riqht Sound...Oiaital Perfornance in BEFORE THE SUBCOMMITTEE ON AND INTELLECTUAL PROPERTYCOURTS OF THE COMMITTEE ON THE JUDICIARY OF REPRESENTATIVESHOUSE HUNDRED FOURTH CONGRESSONE FIRST SESSION ON H.R. 1506 SOUND RECORDINGS ACT OF 1995DIGITAL PERFORMANCE RIGHT IN JUNE 21 AND 'iif^ihu^^^fl «»i.i. O^f'SSnOBy Serial No. 35 '*^'? 2 2 ms ' ^ Printed for the use of the Committee on the Judiciary U.S. GOVERNMENT PRINTING OFFICE 21-155 WASHINGTON : 1996 For sale by the U.S. Government Printing Office Superintendent ofDocuments, Congressional Sales Office, Washington,DC 20402 ISBN 0-16-052379-6 \ ^' PERFORMANCE RIGHT INDIGITAL ^' ACT OF 1995SOUND RECORDINGS 89/1:104/354. J Perfornance Riqht in Sound...gital ..^xaRINGS BEFORE THE SUBCOMMITTEE ON COURTS AND INTELLECTUAL PROPERTY OF THE COMMITTEE ON THE JUDICIAKY HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTH CONGRESS FIRST SESSION ON H.R. 1506 RIGHT IN SOUND RECORDINGS ACT OF 1995DIGITAL PERFORMANCE JUNE 21 AND iitT^mT^^^fMy 1? :> ,?/^«^l jf^ ^.,^^^_ ^ Printed for the use of the Committee on the Judiciary U.S. GOVERNMENT PRINTING OFFICE 21-155 WASHINGTON : 1996 For sale by the U.S. Government Printing Office Superintendent ofDocuments, Congressional Sales Office, Washington,DC 20402 ISBN 0-16-052379-6 COMMITTEE ON THE JUDICIARY HENRY J. HYDE, Illinois, Chairman CARLOS J. MOORHEAD, California JOHN CONYERS, Jr., Michigan F. JAMES SENSENBRENNER, Jr.

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'
A RIGHT INDIGITAL PERFORMANCE
^
SOUND RECORDINGS ACT OF 1995
Y 4, J 89/1:104/35
Riqht Sound...Oiaital Perfornance in
BEFORE THE
SUBCOMMITTEE ON
AND INTELLECTUAL PROPERTYCOURTS
OF THE
COMMITTEE ON THE JUDICIARY
OF REPRESENTATIVESHOUSE
HUNDRED FOURTH CONGRESSONE
FIRST SESSION
ON
H.R. 1506
SOUND RECORDINGS ACT OF 1995DIGITAL PERFORMANCE RIGHT IN
JUNE 21 AND 'iif^ihu^^^fl
«»i.i.
O^f'SSnOBy
Serial No. 35
'*^'? 2 2 ms
'
^
Printed for the use of the Committee on the Judiciary
U.S. GOVERNMENT PRINTING OFFICE
21-155 WASHINGTON : 1996
For sale by the U.S. Government Printing Office
Superintendent ofDocuments, Congressional Sales Office, Washington,DC 20402
ISBN 0-16-052379-6\
^' PERFORMANCE RIGHT INDIGITAL
^'
ACT OF 1995SOUND RECORDINGS
89/1:104/354. J
Perfornance Riqht in Sound...gital
..^xaRINGS
BEFORE THE
SUBCOMMITTEE ON
COURTS AND INTELLECTUAL PROPERTY
OF THE
COMMITTEE ON THE JUDICIAKY
HOUSE OF REPRESENTATIVES
ONE HUNDRED FOURTH CONGRESS
FIRST SESSION
ON
H.R. 1506
RIGHT IN SOUND RECORDINGS ACT OF 1995DIGITAL PERFORMANCE
JUNE 21 AND iitT^mT^^^fMy
1? :>
,?/^«^l jf^ ^.,^^^_
^
Printed for the use of the Committee on the Judiciary
U.S. GOVERNMENT PRINTING OFFICE
21-155 WASHINGTON : 1996
For sale by the U.S. Government Printing Office
Superintendent ofDocuments, Congressional Sales Office, Washington,DC 20402
ISBN 0-16-052379-6COMMITTEE ON THE JUDICIARY
HENRY J. HYDE, Illinois, Chairman
CARLOS J. MOORHEAD, California JOHN CONYERS, Jr., Michigan
F. JAMES SENSENBRENNER, Jr., PATRICIA SCHROEDER, Colorado
Wisconsin BARNEY FRANK, Massachusetts
BILL McCOLLUM, Florida CHARLES E. SCHUMER, New York
GEORGE W. GEKAS, Pennsylvania HOWARD L. BERMAN, California
HOWARD COBLE, North Carolina RICK BOUCHER, Virginia
LAMAR SMITH, Texas JOHN BRYANT, Texas
STEVEN SCHIFF, New Mexico JACK REED, Rhode Island
ELTON GALLEGLY, California JERROLD NADLER, New York
CHARLES T. CANADY, Florida ROBERT C. SCOTT, Virginia
BOB INGLIS, South Carolina MELVIN L. WATT, North Carolina
BOB GOODLATTE, Virginia XAVIER BECERRA, California
STEPHEN E. BUYER, Indiana JOSE E. SERRANO, New York
MARTIN R. HOKE, Ohio ZOE LOFGREN, Cahfornia
SONNY BONO, Cahfornia SHEILA JACKSON LEE, Texas
FRED HEINEMAN, North Carolina
ED BRYANT, Tennessee
STEVE CHABOT, Ohio
MICHAEL PATRICK FLANAGAN, lUinois
BOB BARR, Georgia
Alan F. Coffey, Jr., General Counsel / DirectorStaff
Julian Epstein, Minority Staff Director
Subcommittee on Courts and Intellectual Property
CARLOS J. MOORHEAD, Cahfornia, Chairman
F. JAMES SENSENBRENNER, Jr., PATRICIA SCHROEDER, Colorado
Wisconsin JOHN CONYERS, Jr., Michigan
HOWARD COBLE, North Carolina HOWARD L. BERMAN, Cahfornia
BOB GOODLATTE, Virginia XAVIER BECERRA, California
SONNY BONO, Cahfornia RICK BOUCHER, Virginia
GEORGE W. GEKAS, Pennsylvania JERROLD NADLER, New York
ELTON GALLEGLY, Cahfornia
CHARLES T. CANADY, Florida
MARTIN R. HOKE, Ohio
Thomas E. Mooney, Chief Counsel
Joseph V. Wolfe, Counsel
Mitch Glazier, Assistant Counsel
Betty Wheeler, Minority Counsel
(II)CONTENTS
HEARINGS DATES
Page
June 21, 1995 1 28, 151
TEXT OF BILL
1506 3H.R.
OPENING STATEMENT
Representative in Congress from the State ofMoorhead, Hon. Carlos J., a
IntellectualCalifornia, and chairman, Subcommittee on the Courts and
Property 1
WITNESSES
Berenson, Marvin L., senior vice president and general counsel. Broadcast
Music, Inc 67
Bergman, Barry, president, International Managers Forum 224
Berman, Jason S., chairmsm and CEO, Recording Industry Association of
America 31
Dreith, Dennis, president. Recording Musicians' Association of the United
States and Canada, accompanied by Arthur J. Levine, counsel to AFM
andAFTRA 211
Edward president. National Association of Broadcasters 83Fritts, 0.,
songwriter member of the board of directors,Holyfield, Waylana D., and
Composers, Authors and Publishers 47Ajnerican Society of
Lehman, Bruce A., Assistant Secretary of Conmierce and Commissioner of
Patents and Trademarks, Patent and Trademark Office, U.S. Department
of Commerce 152
Murphy, Edward P., president and CEO, National Music Publishers' Associa-
tion 55
Marybeth, Register of Copyrights and Associate Librarian for Copy-Peters,
accompanied by Marilyn Kretsinger,right Services, Library of Congress,
'. 164Acting General Counsel, Copyright Office
Rubinstein, Jerold H., chairman and CEO, International Cablecasting Tech-
nologies, Inc 124
LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING
vice general counsel, BroadcastBerenson, Marvin L., senior president and
69Music, Inc.: Prepared statement
Managers Forum: Prepared state-Bergman, Barry, president. International
227ment
Association ofBerman, Jason S., chairman and CEO, Recording Industry
34America: Prepared statement
Conyers, Hon. John, Jr., a Representative in Congress from the State of
197Michigan:
Dreith, Dennis, president. Recording Musicians' Association of the United
States and Canada: Prepared statement 215
Fritts, Edward O., president. National Association of Broadcasters: Prepared
statement 86
(III)IV
Page
songwriter and member of the board ofHolyfield, Wayland D., directors,
Authors and Publishers: PreparedAmerican Society of Composers, state-
ment 49
Lehman, Bruce A., Assistant Secretary of Commerce and Commissioner of
Patents and Trademarks, Patent and Trademark Of[ice, U.S. Department
of Commerce: Prepared statement 155
National Music Publishers' Associa-Murphy, Edward P., president and CEO,
tion: Prepared statement 58
Peters, Marybeth, Register of Copyrights and Associate Librarian for Copy-
Prepared statementright Services, Library of Congress: 166
Rubinstein, Jerold H., diairman and CEO, International Cablecasting Tech-
nologies, Inc.: Prepared statement 126
Schroeder, Hon. Patricia, a Representative in Congress from the State of
Colorado 209DIGITAL PERFORMANCE RIGHT IN SOUND
RECORDINGS ACT OF 1995
WEDNESDAY, JUNE 199521,
House of Representatives,
Subcommittee on Courts and
Intellectual Property,
Committee on the Judiciary,
Washington, DC.
The subcommittee met, pursuant to notice, at 10 a.m., in room
Raybum House Office Building,2237, Hon. Carlos J. Moorhead
(chairman of subcommittee)the presiding.
Present: Representatives Carlos Moorhead, F.J. James Sensen-
brenner, Jr., Howard Coble, Bob Goodlatte, George W. Gekas,
Charles T. Canady, Martin R. Hoke, Patricia Schroeder, John Con-
yers, Jr., Howard L. Berman, Xavier Becerra, and Rick Boucher.
Also present: Thomas E. Mooney, chief counsel; Mitch Glazier,
assistant counsel; Sheila Wood, secretary; Betty Wheeler, minority
counsel; and Julian Epstein, minority staff director.
OPENINGSTATEMENTOFCHAIRMANMOORHEAD
Mr. Moorhead. The Subcommittee on Courts and Intellectual
Property will come to order. This morning, the subcommittee will
begin the first day of hearings on H.R. 1506, the Digital Perform-
ance Right in Sound Recordings Act of 1995.
The subcommittee began last Congress to try and construct legis-
lation to take care of what all parties agree is a likely problem for
U.S. record companies and the people who sing and play music.
The problem concerns home subscription services for the digital
transmission of music offered cable.by This type of service permits
the home subscriber, for monthlya fee, to select music. The sub-
scription service can purchase a single record and play it for hun-
dreds of subscribers, and by so doing displace record sales.
Two bills were introduced in the 103d Congress that would have
granted an exclusive public performance right for sound recordings
in performances that occur via digital transmissions. Although the
proposed right was limited, interested parties, including represent-
atives of broadcasters and of the recording industry, proposed fur-
ther amendment to these bills and they died at the end of the ses-
sion. Prior to that, the parties did come to a compromise on May
11, 1994, but we could not come to an agreement on the exemption
of radio broadcasters. Radio broadcasters are exempted under H.R.
1506.
The May 11, 1994, compromise agreement was endorsed by the
Recording Industry Association of America, ASCAP, BMI, the
(1)American Federation of Musicians, the American Federation of Tel-
evision and Recording Artists, and the National Music Publishers'
Association.
On January Senators Hatch and Feinstein introduced13, 1995,
a new version of this legislation. That bill pretty much dis-S. 227,
the compromise ofMay and took the side of theregarded 11, 1994,
Hearings were held on S. 227 on March 1995.record industry. 9,
Industry Association of America, whichExcept for the Recording
representativesstrongly supports S. 227, the other industry and
reservationsthe Register of Copyright expressed serious about cer-
tain provisions of S. 227.
On April 7, 1995, I introduced a bill similar to S. 227. Cosponsors
of H.R. 1506 are Chairman Hyde and Representatives Conyers,
Gekas, and Bono. H.R. 1506 differs from S. 227 in a number of re-
spects. The main difference is that where the songwriters, m

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