Recently, Cathy Hughes, has been leading a campaign to stop the process of a radio performance tax Bill. The Performance Rights Act is a tax on AM and FM radio stations to pay royalties to performers on recorded music played over the airwaves. Right, now only composers and their affiliated publishers receive these payments.
Cathy Hughes, owner of Radio One which spans over 65 radio stations throughout every major market in the country, including local station WKYS 93.9. Radio One is the largest black-owned radio chain in the nation. In January 2004, Hughes also launched TV One, a cable television channel targeted at the African American community.
The debate has been heating up. On one side of the debate is the MusicFirst Coalition, which includes the Recording Industry Association of America, several artist groups and SoundExchange. SoundExchange, collects licensing fees from satellite and Internet radio stations and distribute it in the form of royalty payments to musicians. MusicFirst Coalition and SoundExchange argument is that musicians and others who play or sing on records played on the radio should not be denied compensation from the radio stations.
National Broadcasters have too formed an alliance "Free Radio Alliance" to protest the tax Bill. Included in the alliance are Radio One, Clear Channel Radio, Emmis Communications and National Public Radio. The Free Radio Alliance opposes the Bill stating that it is the responsibility of the record label to pay fees, taxes and royalties. They also state that AM and FM radio is "free" radio therefore the artist are receiving free publicity. Hughes, commercials on the Bill gives examples of artist that have yet to be paid royalties by their record label.
The legislation would require some broadcasters to pay performance royalty fees. Stations with less than $1.25 million in annual revenue would be allowed to pay a flat fee of no more than $5,000 per year. Many radio broadcasting stations feel that the imposed tax will drive them out of business.
Musicians have sought after performance royalties for radio airplay for years. The Bill as it stands is highly favorable for MusicFirst Coalition. However, at the moment the House of Representatives has signed a resolution that opposes "any new performance fee, tax, royalty, or other charge" on AM and FM broadcasters.
What's your two cents? If you oppose the Performance Rights Act log on to sign the petition.














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