Performance Royalty Battle Turns Swinish

by David on March 11, 2010

The battleground over performance royalties in the US just got uglier. A giant inflatable pig has appeared in front of the Dupont Circle offices of the National Association of Broadcasters in Washington in protest of the industry’s refusal to pay additional royalties to musicians when airing their music. The 18-foot-long pig was the latest barb exchanged between the music industry and broadcasters over the Performance Rights Act. A lobby of artist groups wants Congress to legislate broadcasters to pay royalties to performers and artists since other radio formats–online, satellite and cable–all pay musicians. The pig is supposed to symbolize the “piggish” attitudes of corporate radio stations.

American radio stations have vehemently protested what they call a “performance tax,” arguing free airtime has long launched and sustained singers’ careers and continues to provide free promotion to bands.  A similar royalty has been in place in Canada for a number of years.

The U.S. has limited its obligation for protection to only certain digital transmissions and specifically has exempted over-the-air broadcasts and stands out as the most prominent industrialized country without this protection. It is estimated that American labels and performers lose about $70 million a year in potential foreign performance royalties.

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