Telecommunications: The Proposed Performance Rights Act Would Result in Additional Costs for Broadcast Radio Stations and Additional Revenue for Record Companies, Musicians, and Performers, GAO-10-826, August 04, 2010
“Congress is considering legislation that would expand copyright protection for sound recordings. In particular, the proposed Performance Rights Act1 would eliminate an exemption that currently allows analog, nonsubscription AM and FM radio stations (broadcast radio stations) to broadcast a sound recording without acquiring permission from and paying a royalty to the copyright holder, performers, and musicians. The proposed act would amend the statutory license for nonsubscription transmission services to include broadcast radio stations. Under the amendments to the statutory license, a radio station would pay a royalty based on its revenue and its status as a commercial or noncommercial station (see table 1). The proposed act would also exempt some uses of music, such as music in broadcasts of religious services and the incidental use of music by nonmusic stations, while providing a per program license option for radio stations that make limited use of sound recordings, such as broadcasting sound recordings on an infrequent basis.”
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