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Terrestrial Right 'Almost Impossible'

Stakeholders Highlight Music Licensing, Trump Administration Challenges at CTA Tech Summit

RIAA and other music industry stakeholders will continue to pursue proposing the creation of a terrestrial broadcasting performance royalty right either via the Fair Play Fair Pay Act or another bill despite broadcasters' strong opposition, said RIAA General Counsel Steve Marks Tuesday. The terrestrial performance right was one of several top legislative agenda items that stakeholders highlighted during a SXSW-related CTA policy summit in Austin. Tech sector interests noted a range of policy challenges and opportunities they will face under President Donald Trump's administration, including the immigration dispute.

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The Fair Play Fair Pay Act likely will be introduced “in some way, shape or form” and the music industry is “pretty committed to trying to make it happen,” Marks said. But the “reality in Washington is that you have a very powerful lobbying constituency” among broadcasters who are actively opposing the terrestrial performance right proposal, he said. The reintroduced (see 1701250034) broadcaster-backed Local Radio Freedom Act (H.Con.Res. 13/S.Con.Res.6) is viewed as aimed at scuttling attempts to advance the Fair Play Fair Pay Act and other music licensing legislation.

It's “almost impossible” for a terrestrial performance rights bill to move forward without a consensus that includes broadcasters' buy-in, Marks said. The early reintroduction of H.Con.Res.13/S.Con.Res.6 was seen as cementing perceptions that a compromise on the terrestrial performance right issue is unlikely during the 115th Congress (see 1702020064). There have been questions about whether the music industry should continue to pursue the terrestrial performance right proposal or seek more of an emphasis on licensing issues around which a compromise may be possible (see 1703030059).

Pandora's priorities will include “continuing to advocate” at the House Judiciary Committee for legislation that will address the performance royalties “disparity” for pre-1972 sound recordings, said Public Policy and Government Affairs Head Katie Peters. But Pandora also believes it's unrealistic to seek a legislative solution “that will answer all” of the issues facing the music licensing system, particularly since such a solution “is probably not going to account for the next Pandora that's around the corner,” Peters said. It's important to seek solutions that will regulate music licensing “in a way that allows for growth and innovation” while also benefiting consumers.

Pandora is also eagerly awaiting Librarian of Congress Carla Hayden's selection of a permanent replacement for ousted Register of Copyrights Maria Pallante, since a permanent replacement will be in the best position to jump-start Copyright Office modernization, Peters said. Acting Register of Copyrights Karyn Temple Claggett is running the CO. House Judiciary leaders proposed making changes to the register's selection process that would make the register a president-appointed position subject to Senate approval. The committee leaders' proposal has been seen as a bid to effectively pre-empt Hayden from advancing the process for finding a permanent replacement for Pallante (see 1612080061 and 1612220048).

Meanwhile, the tech sector appears to be increasingly finding its “voice” in engaging with the Trump administration on hot-button issues like immigration, said Nielsen Executive Vice President-External Affairs Karen Kornbluh. Many in the tech sector have been vocally opposed to Trump's first and second executive orders curtailing immigration, at least temporarily, from multiple Muslim-majority countries (see 1701290001, 1702060016 and 1702100042). The first order instituted a temporary ban on immigration from seven nations, while the second, revised order dropped Iraq from the ban. The tech sector has criticized the second ban, saying it will hurt the economy and businesses (see 1703070021).

Not engaging the Trump administration on issues like immigration “is not an option,” said CTA Vice President-Congressional Affairs Tiffany Moore. CTA believes that a “perpetual engagement strategy” with the White House regardless of who the president is will be a “good policy going forward,” she said.

The tech sector needs to frame the immigration debate for the White House in terms of how any major curtailment “can impact the economy” and job growth, said Intel Director-Government Relations Norberto Salinas. “Hopefully this is something that will catch the attention” of Trump administration officials in a way that other arguments haven't, Salinas said. It's also important to continue to work with Congress on immigration issues since “I think many members of Congress see the value of immigration” and its impact on the private sector, he said.