July 27, 2015
U.S. House of Representatives
Washington, D.C. 20515

Dear Representative,

On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste, I write in opposition to H. Con. Res. 17, the Local Radio Freedom Act (LRFA).

While technology has led to the creation of new music distribution methods, including satellite and Internet radio, current law has not kept up with these developments.  There is now a growing disparity in how artists who produce music, including both the writer and performer of a given recording, are compensated.  While satellite and Internet based radio stations compensate the artists and producers of audio performances, local AM/FM radio stations are exempt from having to pay their fair share.  Under current law, a performer holds no effective rights to his or her product and receives no compensation when a song is played over local terrestrial radio.  

The LRFA declares that Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings through terrestrial radio.  In other words, it endorses the current regime.  By equating performance fees and royalties with taxes, this legislation promotes and sanctions the status quo and has a chilling effect on the development of forward-thinking policy that respects the rights of all music producers in all media.

CCAGW believes that these artists deserve to hold real, effective intellectual property rights to their products.  If a given work is transmitted, common sense and basic fairness dictate that the medium of transmission should not affect the existence of these rights.  Private property, and specifically intellectual property, is protected by the Constitution.  Unfortunately, the LRFA closes discussion about how best to protect property rights by resolving that terrestrial radio should never pay performance royalties on music broadcast on their stations used for raising advertising revenue.  This is not equitable treatment for any musical artist or music distribution service.

Congress should refrain from precluding a free market approach to royalty payments.  On behalf of CCAGW, I urge you to oppose H. Con. Res. 17, the Local Radio Freedom Act, and allow the discussion to remain open about how best to protect the rights of both performers and writers in the creation of music.

Sincerely,

Tom Schatz

President, CCAGW