Music licensing and small business : hearing before the Committee on Small Business, House of Representatives, One Hundred Fourth Congress, second session, Washington, DC, May 8, 1996

United States. Congress. House. Committee On Small Business

Sujets

• Copyright
• Small business
• United States

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• Publié par: les_archives_du_savoir
• Nombre de lectures: 13
• Langue: English
• Poids de l'ouvrage: 10 Mo

Extrait

U.S. GOVERNMENT PRINTING OFFICE 24-690 CC WASHINGTON : 1997 For sale by the U.S. Government Printing Office Superintendent of Documents, Congressional Sales Office, Washington, DC 20402 ISBN 0-16-054123-9 SMALLCOMMITTEE ON BUSINESS ChairJAN MEYERS, Kansas, JOEL HEFLEY, Colorado JOHN LaFALCE, New YorkJ. ZELIFF, NewWILLIAM H. Jr., Hampshire IKE SKELTON, Missouri TALENT, Missouri SISISKY, VirginiaJAMES M. NORMAN MANZULLO, IlUnois FLOYD NewDONALD A. H. FLAKE, York TORKILDSEN, Massachusetts GLENN POSHARD, IlUnoisPETER G. ROSCOE G. BARTLETT, Maryland EVA M. CLAYTON, North Carolina LINDA SMITH, Washington MARTIN T." />

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HEARING
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COMMITTEE ON SMALL BUSINESS
HOUSE OF REPRESENTATIVES
CONGRESSONE HUNDRED FOURTH
SECOND SESSION
WASHINGTON, DC, MAY 19968,
Printed for the use of the Committee on Small Business
104-76Serial No.
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U.S. GOVERNMENT PRINTING OFFICE
24-690 CC WASHINGTON : 1997
For sale by the U.S. Government Printing Office
Superintendent ofDocuments, Congressional Sales Office, Washington, DC 20402
ISBN 0-16-054123-9UCENSING AND SMALL BUSINESSMUSIC
1:104-764,Sf1Y
...Business,and SnailLicensingtlusic
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
REPRESENTATIVESHOUSE OP
FOURTH CONGRESSONE HUNDRED
^
SECOND SESSION
WASHINGTON, DC, MAY 8, 1996
BusinessPrinted for the use of the Committee on Small
No. 104-76Serial
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U.S. GOVERNMENT PRINTING OFFICE
24-690 CC WASHINGTON
: 1997
For sale by the U.S. Government Printing Office
Superintendent of Documents, Congressional Sales Office, Washington, DC 20402
ISBN 0-16-054123-9SMALLCOMMITTEE ON BUSINESS
ChairJAN MEYERS, Kansas,
JOEL HEFLEY, Colorado JOHN LaFALCE, New YorkJ.
ZELIFF, NewWILLIAM H. Jr., Hampshire IKE SKELTON, Missouri
TALENT, Missouri SISISKY, VirginiaJAMES M. NORMAN
MANZULLO, IlUnois FLOYD NewDONALD A. H. FLAKE, York
TORKILDSEN, Massachusetts GLENN POSHARD, IlUnoisPETER G.
ROSCOE G. BARTLETT, Maryland EVA M. CLAYTON, North Carolina
LINDA SMITH, Washington MARTIN T. MEEHAN, Massachusetts
LoBIONDO, New NewFRANK A. Jersey NYDIA M. VELAZQUEZ, York
ZACH WAMP, Tennessee CLEO FIELDS, Louisiana
W. KELLY, New York EARL HILLIARD, AlabamaSUE F.
DICK CHRYSLER, Michigan DOUGLAS "PETE" PETERSON, Florida
LONGLEY, THOMPSON, MississippiJAMES B. Jr., Maine BENNIE G.
WALTER B. JONES, Jr., North CaroUna KEN BENTSEN, Texas
SALMON, Arizona WILLLAM P. LUTHER, MinnesotaMATT
VAN HILLEARY, Tennessee JOHN ELLfVS BALDACCI, Maine
MARK E. SOUDER, Indiana
SAM BROWNBACK, Kansas
STEVEN CHABOT, OhioJ.
SUE MYRICK, North Carolina
DAVID FUNDERBURK, North Carolina
JACK METCALF, Washington
STEVEN C. LaTOURETTE, Ohio
Jenifer Loon, DirectorStaff
Jeanne M. Roslanowick, Minority DirectorStaff
(11)CONTENTS
Page
held on May 8, 1996Hearing
WITNESSES
May 1996Wednesday, 8,
Composers, Authors and Publishers (ASCAP) 11Alger, Pat, American Society of
Grand Resort Hotel 9Barba, Stephen P., The Balsams
Senior Vice President and General Counsel BMI ... 15Berenson, Marvin L., Esq.,
13National Religious BroadcastersEpperson, Stuart, Vice-Chairman,
7Covington & BurlingRule, Charles F.,
19President, Silo InnTavenner, Tommy,
APPENDIX
Opening statements:
48Meyers, Hon. Jan
51Poshard, Hon. Glenn
52Zeliff, Hon. William H. Jr
Prepared statements:
56Alger, Pat
66Barba, Stephen P
69Berenson, Marvin L., Esq
Epperson, Stuart 75
84Edward PMurphy,
91Charles FRule,
100Tavenner, Tommy
105Weiss, David
Additional material:
112Miscellaneous supplemental materials
(III)BUSINESSMUSIC LICENSING AND SMALL
WEDNESDAY, MAY 19968,
House of Representatives,
Committee on Small Business,
Washington, DC.
met, pursuant to notice at 10 a.m., in room 2359,The Committee
Office Building, the Honorable Jan Meyers (ChairRayburn House
presiding.of the Committee)
morning. The Committee will come to order.Chair MEYERS. Good
second in a series of hearings looking at in-Today's hearing is our
issues of importance to small business.tellectual property
surrounding music licensing practices of the Perform-The issues
ASCAP, BMI, and SESAC, has long been aing Rights Societies,
small businesses in the entertainment and retail-major concern for
ing industry.
music that we all hear when we're out at ourThe background
restaurant or local bar or a retail store is something thatfavorite
really think that much about. Today's hearingmany people don't
all that. Because how music is licensed and who payswill change
how many times it is paid for, is going to surprise manyfor it, and
of us.
know, music licensing under the copyright lawsAs many of you
decrees in effect with respect to ASCAPand the antitrust consent
that are within the legislative jurisdiction ofand BMI are issues
Committee on the Judiciary.the
Small Business has a tradition ofHowever, the Committee on
hearings on issues of importance to small busi-holding oversight
the 85th Congress, a Subcommitteeness. In fact, in 1957, during
Committee on Small Business of the U.S.of the Permanent Select
held 5 days of investigative hearings onHouse of Representatives
the practices ofASCAP.
over printed pages; andThe record of those hearings covered 700
Committee held anas a result of those hearings, members of the
of Jus-executive session with Representatives of the Department
hearingstice who took the matters presented at the Subcommittee
under consideration in their continuing enforcement of the 1950
consent decree against ASCAP.
Today this issue of music licensing remains critical to many
small businesses. For example, 92 percent of NFIB members have
demanded music licensing reform legislation and are firmly behind
H.R. the Fairness in Music Licensing Act. This legislation was789,
introduced by my colleague and friend, Jim Sensenbrenner, and I
am proud to be cosponsor.a
(1)to join us on the CommitteeI have asked Mr. Sensenbrenner
proceedings, although, he says thattoday and to take part in our
for time. Despite my own stronghe may have to leave at least a
today's panel of witnesses weresentiments in favor of H.R. 789,
present balanced view of thecarefully selected in an effort to a
of music licensing.competing concerns in this area
Mr. SensenbrennerAt this point in time, I would like to yield to
leave he may be back later,for just a moment since he does have to
our ranking member, Mr. Johnand then I will certainly yield to
LaFalce. Mr. Sensenbrenner.
in the appendix.][Chair Meyers' statement may be found
much, Madam Chair, forMr. Sensenbrenner. Thank you very
hearing. I agreed to intro-the opportunity to participate in today's
Licensing Act of afterH.R. 789, the Fairness in Music 1995,duce
small business own-I received a number of phone calls from irate
something called "ASCAP"my district complaining abouters in
and their music licensing practices.
they didn't like whatThey were told to call their Congressman if
applaud you for re-going on, and they did. Madam Chair, Iwas
holding this hear-sponding to these and other folks nationwide by
ing today.
examining this issue from anWe on the Judiciary Committee are
for examining theintellectual property perspective. I commend you
royalty for the use ofsmall business issues. Songwriters deserve a
circumstances require atheir music. Congress must decide which
payment and by whom.
exemption. Unfortunately,Current law establishes a home-style
The question onit has proven unworkable and we can do better.
we do better?this issue, like so many others, is: How do
similar legislation intro-H.R. 789 is more narrowly drafted than
simply get busi-duced in the last Congress. It is not an attempt to
sometimes portrayed bynesses out of paying for using music, as is
the opponents.
the loss tenets of theI introduced H.R. 789 to reestablish some of
The absence of thesemarketplace to music licensing practices.
Business ownersprinciples has brought us to the present discord.
their control. Theyhave to pay for the music beyondshouldn't
society that de- be forced to do business with every music
paying for, and theymands a fee. They should be told what they're
disputes at theirhave an economical method of resolvingshould
these rights.disposal. Unfortunately, current law doesn't protect
fixes this problem.H.R. 789
footballpeople don't tune into the nightly news or to aMany
happened,listen to the music. They want to know whatgame to
Many broadcastsweather is like, and what team will win.what the
incidental snippet of music.contain an
becausesocieties are aiming at charged feesThe music licensing
have alreadyregardless of the fact that songwritersof this music,
adver-network, by the marching band, or by thebeen paid by the
or songnever know which piece of musictiser; but because you
or TV or cable, a business owner mustmight be broadcast on radio
alter-their asking price. The onlypay every music licensing society
thoughTVs off altogether, evennative is to turn the radios and
fee.the program without paying thethey're entitled to the rest ofexemption for music broadcast over radiosH.R. 789 creates an
or compact discs or live bands thatand TV. It does not affect tapes
The bill addresses otherbrought into retail establishments.are
have real way to know whatconcerns. Businesses often don't any
repertoires arepurchased. Song titles in the music societies'they
unavailable or accessible only with considerable effort andoften
sometimes costs.
information, it's nearly impossible to know whetherWithout this
offers better value, and it's almost impos-one society or another
tapes and compact discs to the rep-sible to restrict music played on
789 requires the so-ertoire ofjust one mu