Performance Royalty

Congress is considering legislation that would expand copyright protection for sound recordings. In particular, the proposed Performance Rights Act would eliminate an exemption that currently allows analog, non-subscription AM and FM radio to broadcast a sound recording without acquiring permission from and paying a royalty to the copyright holder, performers, and musicians. This report reviewed: (1) the current economic challenges facing the recording and broadcast radio industries; (2) the benefits both industries receive from their current relationship; (3) the potential effects of the proposed act on the broadcast radio industry; and (4) the potential effects of the proposed act on the recording industry. Charts and tables.