"[This] announcement sends a powerful message to foreign-owned record labels that Congress is not falling for their bogus campaign to blame local radio stations for their financial woes," said NAB Executive Vice President Dennis Wharton. "NAB thanks those members of Congress who appreciate the fact that free radio airplay of music generates untold millions into the wallets of performers and record labels. We will continue to educate policymakers on the devastating impact this RIAA tax would have on America's hometown radio stations."
The additional opposition to a performance tax sought by the Recording Industry Association of America (RIAA) comes through the Local Radio Freedom Act (H. Con. Res. 244). The newest lawmakers to cosponsor the resolution, thereby opposing a performance tax, include Reps. Robert Andrews (D-NJ), Chaka Fattah (D-PA), Stephen Lynch (D-MA) and Carolyn McCarthy (D-NY). A companion resolution, S. Con. Res. 82, has been introduced in the Senate and is supported by 13 senators.
On June 26, the House Judiciary Subcommittee on Courts, the Internet and Intellectual Property, chaired by Rep. Howard Berman (D-CA-28), cleared the RIAA-backed performance tax bill (H.R. 4789) by voice vote. The subcommittee is made up of a significant number of members of Congress who represent artist and record label populations. Although the outcome was expected, NAB worked aggressively prior to the mark-up to raise questions and concerns among the members and staff. NAB also ran an ad in several Capitol Hill publications voicing concerns. As a result of the effort, members on both sides of the aisle discussed a variety of concerns with the bill. While the subcommittee ultimately cleared the bill, there appeared to be a reasonable amount of discourse and lack of certainty on the actual content of the legislation.
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