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UPDATED: Mr. Corgan goes to Washington for a bigger piece of the radio pie

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Radio should be paying performers more for the songs it plays, Smashing Pumpkins bandleader Billy Corgan told congressional leaders Tuesday during a hearing on the Performance Rights Act before the House Committee on the Judiciary.

Pushed by the major label's lobbying group, the Recording Industry Association of America, bills have been introduced to both houses of Congress to require conventional or "terrestrial" radio to pay musicians for playing on recordings given airtime. Radio has long paid royalties to the songwriters, but it has not paid separate performance royalties, which have been required of Internet, television satellite broadcasters.

"The change to the law we are here to discuss only redresses an outmoded, unfair practice that favors one participant's [radio's] needs over another [performers']. This legislation is simply a form of restoration to artists long overdue," Corgan said.

But rather than demanding more royalties from conventional radio, many music advocates say performance royalties should be waived for all broadcasters, since playing a song on any medium essentially is a free ad that may boost sales of that recording.

If the changes in the law pass, "your local radio stations will be forced to cut services or employees, may be forced to move from a music format to a talk format or may be facing bankruptcy," NAB Radio Board Chairman Steve Newberry told the committee.

ADDITIONAL READING

The radio trade FMQB covers the broadcasters' perspective here.

The Taking It Back to the Roots! blog has a strong background piece here.

And Corgan's full testimony can be found following the jump.

Testimony of Billy Corgan, Found er, Smashing Pumpkins Before the Committee on the Judiciary U. S. House of Representatives March 10, 2009 Regarding H.R. 848, the Performance Rights Act


I'd like to thank Chairman Conyers and the Committee for this opportunity to appear before you
today about the Performance Rights Act. I'm here as a representative of the musicFIRST
coalition, to give voice to fellow artists and musicians who have joined together to assert their
right to be compensated for the airing of their musical performances on terrestrial radio.


Because of my experiences in the music business for over 20 years, I have a particular sensitivity when it comes to artists' rights, and who controls the distribution, and therefore, the worth of those rights. Like many of my peers, I come from a working-class background, beginning my musical journey playing in dingy bars and college lunchrooms. Being a performer requires countless hours of dedication to your craft. It is not an easy business to undertake, and for every success story, there are many who have not had the opportunities that I've had.

I was able to find an audience, in no small measure, because of the long support of my music by
terrestrial radio. I am a big fan of radio, and am very interested in its continued health and well being. Terrestrial radio has helped me to discover many of the artists that became influential to
my life and artistic pursuits. I by no means see them as the bad guy.

The change to the law we are here to discuss only redresses an outmoded, unfair practice that
favors one participant's needs over another. This legislation is simply a form of restoration to
artists long overdue.

The rights of any artist are often rife with vague distinctions and contradictions, as the worth of a
creative endeavor cannot be calculated by any science. Works of art are judged subjectively, and
if deemed good enough, plugged into a vast system that attempts to establish their mettle and
eventually capitalize on that value. The debate over what any piece of art should command on an
open market is as old as time itself.

As it stands currently, if you have written a song and you have the good fortune of being played
on terrestrial radio, then you, as the author, are entitled to a fixed form of compensation as
established by Congress. This compensation, of course, recognizes the unique contribution that
the author has made to the creation of the song. Conversely, if you also happen to be a performer on that very same song, by law, terrestrial radio owes you no form of compensation at all. The decision behind this long-held inequity stems back to 1909 when radio was in its infancy, and since sound recordings had only recently come onto the market, they were not included. The old fashioned radio business has held onto this exemption for over 80 years -- a law made in a bygone era for a set of reasons long past.

This landmark exemption however stripped performers of their right to a free market evaluation
of the value of their recorded works. From my perspective, this issue is one of fundamental
fairness. If the performance of a song has value to a particular terrestrial radio station in its
airing, I believe it is only right to compensate those performers who have created this work.

Simply put, if a station plays a song, both the author and the performer should be paid. These
particular performances must have value to the stations or they wouldn't be playing them.
Not every performer on a hit song is a big name, and they might not see the same windfall that a
star might. One can't assume they participate in the merchandise or touring income that is linked to commercial radio success. Not everyone who hears a song on terrestrial radio buys a ticket or a t-shirt. Some listeners just listen, thereby rewarding only the station and their advertisers, and not performers themselves.

All areas of the modern music business are currently feeling the shifting tides as new models
emerge and old ones are broken up. Ours is a business that always begins with the brilliance of
the artists. Contrary to long-held myths, it does take money to create new music. As the
traditional revenue streams have dried up, most notably in the overall decline of record sales, it
has placed stress on who continues to benefit from the old models. The future demands new
partnerships and a rethinking of long-held practices about how artists should be compensated for
their music. The hallmark of any great entertainment career is sustainability. Recognizing both
the significance of the author and performer in the music making process helps to create those
future opportunities.

In closing, and with all due respect to those that oppose the passage of the Performance Rights
Act, to classify this measure as a "tax" is an interesting choice of words. For who has been taxed more than the artists themselves? Artists have paid their dues, so to speak, to establish terrestrial radio as a great and dynamic medium. We must consider that, for many artists, the difference between receiving these resources is the difference between a life in music and a life out of music. Few could deny that when a classic performance is captured, forever frozen as a musical snapshot in time, generation after generation returns to these moments, each finding something a little different. Whether we are talking about Motown, Stax, Elvis, or Howling Wolf, when the public decides that a specific performance is worthy of their attention, then it seems only fitting that this little bit of magic as documented be recognized in the form of direct compensation for the artists and organizations that helped to create it.

I thank you for your time.

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4 Comments

Every other industry is lobbying the government (in one way or another) these days to try and get more money. Why not the musicians? I mean, sure, bands like Smashing Pumpkins were eventually made through the support of booming alt-rock stations back in the '90's. But those days are over. And nobody buys records anymore, and in this economy, no one can afford to go to shows since Corgan's other beloved institution TicketMaster/LiveNation controls the tickets. If things continue at this pace, there won't be any avenue left other than to sell song licensing rights to major corporations. Oh, wait...

And hey all you radio stations out there. If you don't want to pony up the extra cash to play Corgan's tunes, there are thousands of independent musicians out there who'd gladly let you play their songs for free.

Bravo Billy and happy birthday

Well what corgan is asking for is that the musicians be fairly paid and have it not just be one sided in that the writer gets paid and the performer gets nothing because what would the song be if there was no one to perform the song it would just be words with no life force.. and the music business is a messed up avenue because there is no DEFINITE price for a artistic creation . just look at painters that sell paintings for Millions of dollars and thats just artistic creation of a different medium and how come they are allow to do this. yet musicians are just as important as painters if not more. so they should be fairly compensated for their brilliance.

There are very few radio stations that play anything worthwhile to listen to. If they're just going to play alt-rock hits from the 90s or new pop songs by a select few artists there's no reason why people shouldn't just plug into their iPods and Pandora. There are a few local stations in some places that play independent and local stuff, but I could care less if mainstream radio dies. They don't play anything but the hits they think people like best... which Pandora does a much better job of AND includes independent artists or artists you haven't heard of before

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Jim DeRogatis

Jim DeRogatis covers pop music for the Chicago Sun-Times. Contact him via E-mail.

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