New House IP Subcommittee Ranking Member Nadler Expected to Pursue Terrestrial Royalties
Advocacy for performers to be paid terrestrial royalties is expected from the newly selected ranking member of the House Judiciary Intellectual Property Subcommittee, Rep. Jerrold Nadler, D-N.Y., said performance advocates and copyright holders in interviews. Nadler was named to the subcommittee Jan. 28 (http://1.usa.gov/Mb4Szu) to replace ranking member Mel Watt, D-N.C., who was appointed by President Barack Obama to head the Federal Housing Finance Agency. Nadler is considered a keen observer of copyright issues, due mainly to his home district being Manhattan, home to many copyright industries.
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Although the prospects for copyright legislation remain in question, Nadler is expected to take a close look at royalties for musicians played on FM and AM radio. The stakes of the copyright debate are enormous and Nadler and the subcommittee should proceed with caution, said David Sohn, general counsel at the Center for Democracy & Technology. A Nadler statement said striking “the right balance” between fairly compensating artists and allowing for technological innovation online should be the subcommittee’s objective.
IP Subcommittee Chairman Howard Coble, R-N.C., said in a statement he was “sure” he and Nadler would “find common ground” on IP safeguards. Nadler is “just the kind of Member we all need to confront the complex issues that the Subcommittee deals with,” said Cary Sherman, RIAA CEO, by email. Nadler’s “experience in Congress and in his district will serve [the subcommittee] well,” as it grapples with IP issues, said an MPAA spokeswoman.
Nadler has “traditionally understood the issues that affect the copyright,” being a lawmaker from the 10th District of New York, said Todd Dickinson, American Intellectual Property Law Association executive director. Nadler has an understanding of the “publishing industry’s perspective” on copyright, as well as the media and content industry’s viewpoint, he said. Nadler has a “very deliberate and measured view” of copyright issues, and is not “fixed in a particular spot,” which is “what we always look for in leaders on these issues,” said Dickinson.
Nadler has a “positive reputation in the independent music sector,” and has expressed “a lot of interest in artist compensation” related to terrestrial royalties, said Casey Rae, Future of Music Coalition interim executive director, by email. It’s “probably too early to speculate” on the potential for copyright legislation in the coming year, said Rae. He nevertheless expects Nadler to “address the terrestrial radio royalty exemption and perhaps how rates are calculated for internet and satellite radio,” he said.
The “combination” of Nadler and House Judiciary Committee Chairman Bob Goodlatte, R-Va., along with the advice of Register of Copyrights Maria Pallante, is “good news for the creator community” and all “defenders of copyright,” said Rich Bengloff, American Association of Independent Music president. Bengloff was “optimistic” that the House would enact a “long overdue terrestrial sound recording performance royalty for over-the-air radio play,” and other “policy recommendations” by Pallante, he said.
Nadler is a “long -time supporter of music creators” and a “powerful voice on our behalf,” said Ted Kalo, musicFirst Coalition executive director. Nadler has shown he’s “very personally attentive to detail,” as displayed by his work on bankruptcy and tax law, said Kalo. Goodlatte has “indicated” that music licensing might be the “low-hanging fruit” of copyright changes, and “we expect the beginning of legislative activity in the music licensing space,” although legislation may not take shape this year, he said.
After circulating a bill on performance royalties on terrestrial radio (http://1.usa.gov/1khLZcw) last Congress, Nadler may want to “get involved” on terrestrial royalties for performers, said an industry official. Although there are many copyright review hearings scheduled for the year, Goodlatte’s plans for legislation remain “unclear,” said the official. Satellite-TV signal importation law, which needs to be reauthorized before years’ end, could act as a “legislative vehicle for some kind of copyright reform,” the official said. Whatever the case, “Nadler is going to play an important role in helping to shape what comes out of these hearings,” said the official.
The “deliberate manner” in which the IP Subcommittee is reviewing copyright law will probably “continue, because these are tricky waters to navigate and nobody is going to want another [Stop Online Piracy Act] situation,” said Sohn. The impact of copyright law is “no longer” limited to “established copyright-based industries,” but extends to “technology innovation, user rights, and citizens’ own creativity and free expression,” said Sohn. With so much to “sort through,” Nadler and the subcommittee need to “proceed carefully,” he said.