News and Events

Congressman Jason Chaffetz, R-Utah, Congressman Jared Polis, D-Colo., and Senator Ron Wyden, D-Ore. have introduced legislation that would help create a more level playing (and paying) field for those broadcasting radio tunes whether on the Internet or over the airwaves. The Internet Radio Fairness Act would end provisions in the Copyright Act that favor incumbents over new entrants offering online music. Various digital radio providers would pay similar royalty fees instead of the current system that charges webcasters much higher rates than other digital radio providers.

The following can be attributed to CCIA President & CEO Ed Black:

“As consumers demand new ways to listen to music using the latest technology, we need to update the laws to ensure that new competitors do not face discrimination as they enter the marketplace. Charging different rates for different digital radio providers is fundamentally unfair and goes against the interests of an economy that has time and again chosen to boost competition and innovation.”

“While there are no doubt some who would like a pay per view or per listen business model for radio, that’s out of tune with what the public has come to expect with our history of free music on the radio. Why should free, ad supported radio music be curtailed because technology has changed and the delivery method is different?

The following can be attributed to CCIA Vice President Matt Schruers:

“The current system we have to set royalty rates is the result of piecemeal legislation that favors some digital radio providers over others. Language in the Copyright Act actually directs those setting royalty rates to “minimize any disruptive impact” on current industries – or in other words – support incumbents and discourage competition from new players.

“This legislation would update the law to no longer discourage competition since technology has enabled different distribution methods for radio offerings. As Congress has recognized in the past, the best course is a technology neutral standard that would boost innovation as well as the ability for music fans to connect with their favorite artists.”