[Dixielandjazz] From Marilyn Bergmann: Copyright Royalty Board Begins Critical Mechanical Rates Hearing

[Mike]

An Urgent Message From Marilyn Bergman

January 28, 2008

To All ASCAP Members,

Over the years, ASCAP has worked tirelessly to convince Congress 
and the courts that all songwriters, composers and music 
publishers are entitled to fair compensation for their 
copyrighted musical works. As you know, ASCAP represents the 
performing right, a large and growing part of your compensation. 
But mechanical and synchronization rights are also a critical 
element of your livelihood.

Today, the Copyright Royalty Board (CRB) begins a hearing that 
will determine mechanical rates for every songwriter and music 
publisher in America. It will be critical because, in addition 
to setting rates for physical products, rates will be set for 
the first time ever for digital products such as digital 
downloads, subscription services and ringtones.

Our friends at The National Music Publishers' Association (NMPA) 
will be representing the mechanical right interests of 
songwriters and music publishers in this hearing. They will be 
fighting vigorously to protect those mechanical right interests 
to ensure that musical compositions are compensated fairly. On 
the other side of this fight stands the Recording Industry 
Association of America (RIAA) and the Digital Media Association 
(DiMA). Both the RIAA and DiMA have proposed significant 
reductions in mechanical royalty rates that would be disastrous 
for songwriters and music publishers.

David Israelite, NMPA President and CEO tells us, "The current 
rate for physical phonorecords is 9.1 cents. The RIAA has 
proposed slashing the rate to approximately 6 cents a song - a 
cut of more than one-third the current rate! For permanent 
digital downloads, NMPA is proposing a rate of 15 cents per 
track because the costs involved are much less than for physical 
products. The RIAA has proposed the outrageous rate of 
approximately 5 - 5.5 cents per track, and DiMA is proposing 
even less. For interactive streaming services, which some 
analysts believe will be the future of the music industry, NMPA 
is proposing a rate of the greater of 12.5% of revenue, 27.5% of 
content costs, or a micro-penny calculation based on usage. The 
RIAA actually proposed that songwriters and music publishers 
should get the equivalent of .58% of revenue. And DiMA is taking 
the position that songwriters' and music publishers' mechanical 
rights should be zero, because DiMA does not believe we have 
any! such rights!"

Irwin Robinson, ASCAP Board member and Chairman of the NMPA 
added, "Our opponents in this hearing are proposing a rate 
structure which would have devastating consequences for 
songwriters, composers and music publishers trying to make a 
living, now or in the future." The initial hearing will last 
four weeks, followed by a rebuttal hearing in May, and a final 
decision expected on October 2. Among the ASCAP writer members 
testifying at the hearing are Rick Carnes, Phil Galdston, and 
Board member Stephen Paulus.

And while all this is going on, ASCAP has been leading the fight 
for fair performance right compensation in Federal Court against 
DiMA members AOL, Yahoo! and RealNetworks. Our case has been 
heard and we expect an outcome this summer.

Clearly these are perilous times for those of us that create the 
music that generates profit for those that use our music. But 
remember this, there would be no profit without our musical 
compositions that they are fighting to use so freely!

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"I don't care much about music. What I like is sounds."

- John Birks "Dizzy" Gillespie (1917-1993)