Legal Eagles: Music Industry Bills, Laws,
and Legislation
Wondering how that new bill going through
congress will affect songwriters, musicians, managers, or labels if it
passes? Confused about what that new law does?
MusicBizAdvice.com breaks it down for you.
By Keith Kehrer
January 2006
Title of the, bill, law, legislation, or lawsuit:
Bill: The Radio And Concert
Disclosure And Competition Act Of 2005 (New payola legislation,
Introduced by U.S. Senator Russ Feingold)
What it is and how it affects the music industry:
1. The bill gives the FCC more power to prove and punish companies for
participating in payola by allowing them to close a radio station for
violations.
2. Adds FCC rules against using third parties to pay radio stations, which
is what record labels resorted to after paying DJ’s directly was made
illegal.
3. Prevents cross ownership of radio stations and promotion companies, which
currently creates unfair competition for small radio stations and promoters.
4. Requires radio stations to disclose all receipts and payments that could
be used as a form of payola.
Who it affects in the industry:
If this bill is implemented properly it could be used to ensure that the
music is on the radio because of its artistic merit and consumer popularity,
and not because of traded favors.
Segment of the industry most affected:
Fans would be actually hearing more music because choices would not
be limited to entities that have the financial
clout to pay for airplay. This would benefit smaller independent
record labels, smaller radio stations, artists, and
songwriters. Even though downloads and other avenues are becoming
popular ways to hear music, most people still hear an artists music on the
radio.
It may also benefit small concert promoters, expanding the market for
artists to play live music, bringing more job opportunities
for crew members as well.
What you can do:
Contact your senators, and ask
them to support S.2058 Radio and Concert Disclosure and Competition
Act. |
