On August 2, the FMC, in conjunction with AFTRA, AFM, The Recording Academy and Recording Artists’ Coalition, filed reply comments [PDF] in the FCC proceeding on the transition from analog to digital radio (MM 99-325).

The FCC has opened this proceeding to collect feedback from stakeholders and citizens about the transition from an analog transmission of radio to a digital transmission. Unlike analog radio, digital radio will use spectrum very efficiently. The more precise transmissions would mean that, theoretically, existing broadcasters would be able to use the channels adjacent to their current license for other uses. In other words, a station licensed at 90.1 would be able to use the frequencies 90.0 and 90.2 to send data, video, or offer subscription services.

In our joint filing, the artist groups expressed broad support for and excitement about the opportunities that digital audio broadcasting presents to citizens and musicians. Clearly, a more efficient use of the public spectrum means more opportunities for local programming, niche shows, and more voices on the air.

However, we also urged the FCC to recognize the potential that DAB (digital audio broadcast) has to disrupt or diminish existing revenue streams on which musicians depend. There are already DAB receivers on the market in Europe and Asia that let radio listeners rewind, buffer, record and store radio broadcasts and songs (check out http://www.thebug.com/ for an example of one available in the UK). This has led many in the music industry to be concerned that DAB would diminish CD sales and even displace the emerging Internet technologies that offer legal downloads or streams to music fans.

As a result, we called on the FCC to recognize the value of recording artists’ work and ensure that the DAB transition also includes a technological and regulatory framework that will ensure that recording artists, songwriters and copyright owners are fairly compensated in the future. In particular, we expressed the need for broadcasters to pay a public performance royalty – a royalty that is currently paid by webcasters, satellite radio and cable subscriber services but not by terrestrial broadcasters. To explain this difference: if you heard Patsy Cline singing “Crazy” on regular radio, she is not paid a royalty, but the songwriter Willie Nelson is, but if you heard “Crazy” on XM Radio (a satellite service), both Patsy Cline and Willie Nelson receive a royalty. FMC feels that the transition to DAB is the best time harmonize these rights and ensure that performances on digital radio are compensated via a performance royalty.

We also urged the FCC to undertake a full rulemaking on any proposed measures calling for content protection (aka a “broadcast flag”). Note that FMC is much more interested in a licensing solution than a content protection solution, though we do recognize the concerns of many in the music industry.

Read FMC’s joint reply comments filed August 2 here [PDF]

Press release about the joint reply comment filing:

The reply comments is the second document that the FMC has filed with the FCC on this issue. On June 16th, FMC, in conjunction with AFTRA and AFM, filed initial comments, reminding the FCC of their congressional mandate to address localism, competition, and diversity in the transition, and to include musicians and performers in the policymaking process – not just radio broadcasters and technology companies – when building a regulatory framework for Digital Audio Broadcasting.

RELATED LINKS
FCC’s fact sheet on digital radio

A good description of the differences between analog and digital radio by Jim Griffin of Cherry Lane Digital

On August 4, the FMC sent a letter up to the Senate Judiciary Committee expressing our concerns about the INDUCE Act. INDUCE is a bill introduced by Senator Orrin Hatch and strongly supported by the RIAA that creates a new cause of action against technology companies that “induce” the public to infringe copyrights. Technology companies are opposed to the bill because they believe it is overbroad and will eliminate P2P file-sharing as well as future innovations, even if they have substantial non-infringing uses.

In the letter, FMC brought three points to the committee’s attention, including:

• Creators are stakeholders and should be at the table during these policy deliberations.
• INDUCE assumes that all copyright owners do not want their works to be shared on a P2P network when preliminary results from the FMC/Pew Internet survey suggest that many artists believe P2P file-sharing has helped their careers.
• INDUCE does not promote market-based solutions.

Word from Senator Hatch following a July 22 hearing on this bill is that he wants to work on the language of this bill with stakeholders throughout the August congressional recess. We will continue to track this bill.

Read FMC’s letter to the Senate Judiciary Committee here.

Read an explanation of the INDUCE Act written by FMC volunteer/intern Michael Colangelo. Also includes a report from the Senate Judiciary’s July 22 hearing on the bill.

Senate bill bans P2P Networks
"Whoever intentionally induces any violation" of copyright law would be legally liable for those violations, a prohibition that would effectively ban file-swapping networks and could also imperil some consumer electronics devices.
By Declan McCullagh
CNET, June 23, 2004

Techies Blast INDUCE Act
The Senate heard strong opposition from the technology industry on Thursday about a bill that would hold tech companies responsible for creating devices that could be used to pirate digital content. But Sens. Orrin Hatch and Patrick Leahy, the sponsors of the bill, are determined to move forward with the legislation.
By Katie Dean
Wired, July 23, 2004

Group Wants to Induce Downloads
A coalition of techies and free-speech advocates distributes videos of Senate hearings about the Induce Act to prove two points: that the law would be very damaging to the tech industry, and that peer-to-peer networks can serve the public.
By Xeni Jardin
Wired, August 4, 2004

On July 22, the FMC joined AFTRA, AFM and RAC in sending a letter to the House Judiciary Committee [PDF]. The letter was filed after a July 15 hearing on “Internet Streaming of Radio Broadcasts” held by the committee, one at which there were no musicians or musicians’ representatives asked to testify.

In our letter we reminded the Committee about the value of musicians’ work and our undeniable role as stakeholders in these policy debates, and we urged them to include us in future discussions. We then explained how musicians and songwriters depend on various and multiple revenue streams in order to make a living – CD sales, merchandise, touring, songwriting royalties, and so on. As we move into a digital age, it’s becoming more obvious that physical CD sales are being replaced by “listens”. We expressed our enthusiasm for these various technologies and services that allow musicians to distribute and promote their music in new ways. But we also urged the Committee to understand how these technologies are changing the income streams that musicians have traditionally relied upon, and reiterated the Copyright Office’s call for a comprehensive performance right in sound recordings, one that would not only be paid by webcasters and satellite radio (who already pay it), but also by terrestrial broadcasters (who have avoided paying this for decades).

Link to the letter [PDF]

On July 22, the Senate Commerce Committee approved by voice S 2505, the Low Power Radio Act of 2004. Introduced by Senators John McCain (R-AZ) and Patrick Leahy (D-VT), this bill would repeal the Radio Broadcasting Preservation Act passed in December 2000, and reauthorize the FCC to place 100-watt noncommercial radio stations on the third adjacent channel between existing full power stations.

This legislation expands the FCC’s wildly popular low power radio service that has created hundreds of community-serving stations since the licensing class was established in 2000. Because of congressional action in December 2000, these licenses have been restricted to rural areas and small towns. If passed, S 2505 would allow for the expansion of low power stations in more populated and urban areas, where commercial and corporate radio currently dominates.

The FMC is proud to work in coalition with groups like Prometheus Radio Project, Media Access Project, National Federation of Community Broadcasters, National Lawyers Guild, United States Conference of Catholic Bishops, Recording Artists’ Coalition, AFTRA and many others to support this important legislation.

With the bill moving past the Senate Commerce Committee, supporters will look to move a parallel piece of legislation through the House Commerce Committee. We still have a long road ahead of us, but the July 22 Senate Commerce Committee vote was an historic benchmark in the struggle to expand the LPFM service to urban markets and larger population centers.

LPFM Passes in Senate Commerce Committee
Despite Broadcasters’ Objections, Panel Approves Low Power FM Bill
By Amol Sharma
Congressional Quarterly, July 22, 2004

Low-Power Radio Deserves a Chance
McCain and Leahy introduced the Low Power Radio Act of 2004 to end the blackout of LPFMs in urban areas. It could clear the way for as many as 1,000 new stations.
Editorial, San Francisco Gate, July 5, 2004

New Hope for Low Power FM
As a lover of radio and an intermittent broadcast professional I feel despair at the state of commercial radio today. I heartily agree with the policy statement, just released by the Future of Music Coalition regarding low power FM (LPFM).
Eric Olsen
Blogcritics, June 8, 2004

On July 1, the FCC released a Notice of Inquiry [PDF] to investigate and address localism in radio in the age of consolidation. This is an important step as it will give stakeholders, musicians and the public an opportunity to tell the FCC how they think local radio stations are serving (or not serving) their communities and what we all think should be done about it.

The FMC expects to actively participate in this proceeding. We’re currently crafting an online survey that will help us understand what musicians and music fans think about local radio, which we hope to launch in a couple of weeks. We’ll also give everyone tips on how to file comments at the FCC on this matter, so policymakers can hear from citizens and musicians. The comment period on this proceeding has just been expanded to November

1. FCC’s Notice of Inquiry on Localism [PDF]

FCC Opens Formal Inquiry on Localism
Taking another step forward in its mission to size up the job broadcasters are doing in serving their local communities, the FCC today issued a formal Notice Of Inquiry on the subject.
FMBQ, July 1, 2004

FCC Dials Up Public Input on Radio Issues
With the FCC trying to address concerns about local broadcasting in the age of consolidation, Powell has issued a notice inviting public comment on localism issues.
By Bill Holland
Billboard, July 10, 2004

FMC intern Brett Keller has written a plain language explanation of the Digital Millennium Copyright Act (DMCA). While the DMCA may be “old news”, the law continues to provide copyright owners with more legal muscle to protect their copyrights in the digital age and is the basis for all sorts of current litigation and disputes. The article provides a summary with less jargon and more examples to help make the law understandable. There are even two versions – one that outline the entire law and one that focuses on the parts that apply to the world of musical copyrights.

Musicians’ and Citizens’ Guide to the DMCA
Introduction | Full examination | DMCA for musicians

Here’s a copy of the actual law:
http://www.eff.org/IP/DMCA/hr2281_dmca_law_19981020_pl105-304.html

Hey, reader. Who are you? And why are you reading this? FMC is conducting a simple online survey that will help us to understand who is subscribing to the newsletter, what issues rank as the most important, and what you’d like FMC to do more of less of if you could wave some sort of magic wand over us.

The survey is anonymous and confidential, and would take you as little as 3 minutes to fill out (longer if you want to provide us with specific answers to some questions). Go here to participate.

And thank you.

And then there were four…major labels that is. A lot more news below. Here are some of our favorites.

MUSICIANS and ACTIVISM
Singing out in protest
Musicians are producing a historic burst of activism, but you might have to search for it.
By Randy Lewis
Los Angeles Times, August 2, 2004

PEER TO PEER
Most people oppose music industry’s anti-downloading campaign, survey shows
A majority of Americans thinks the music industry has gone too far in its campaign to sue illegal music downloaders, according to a recent poll conducted by FindLaw.
By Leslie Brooks Suzukamo
Knight Ridder, June 28, 2004

HEALTH INSURANCE
A New Pension Fund for Struggling Artists
New Pension Fund Seeks to Give Struggling Artists a Taste of Long-Term Stability
By Julie Salamon
New York Times, July 20, 2004

DIGITAL MUSIC STORES
‘Stunned’ Apple rails against Real’s iPod move
Apple Computer on issued a scathing response to RealNetworks’ move to unlock Apple’s proprietary technology and make it possible for people to listen to music in RealNetworks’ digital file format on iPod devices.
By Matt Hines
CNET News.com, July 29, 2004

Apple signs big U.K. indies for iTunes
Deal marks breakthrough in licensing talks with influential independent labels in the United Kingdom.
By John Borland
CNET, July 21, 2004

EBay Tests Digital Music Waters
Online auction giant eBay will allow some customers to buy and sell digital music files as part of a pilot program that could piggyback on the success of Apple Computer’s iTunes service.
Compiled by Laila Weir
Wired, July 15, 2004

NEW BUSINESS MODELS
Musicians promised a cut of digital pie
The profits from file-sharing programs that allow users to swap music files will be shared with artists once litigation settles down, according to an executive involved in digital download services.
By Matthew Liddy
ABC News Online, July 8, 2004

D.I.Y. Means N.R.L. (no record label)
ArtistShare gives musicians an alternative to record labels while still putting an album on the market.
By Fred Kaplan
New York Times, July 4, 2004

COPYRIGHT
Sue You: This Song Is Our Song
An animated parody of President Bush and Sen. John Kerry set to the tune of ‘This Land Is Your Land’ has everyone laughing except the owners of Woody Guthrie’s copyrights.
By Rachel Metz
Wired, July 29, 2004

Kristin Thomson
In July, Kristin was thrilled to be a panelist at the Southern Girls Rock and Roll Camp in Murfreesboro, TN where she talked about what record labels do for musicians and the basics of the music industry in front of a posse of 12-18 year old girls. Silently she remembered the depressing number of God’s-eyes and pet rocks she made at summer camps and thought how much cooler it would have been to have learned drums instead. Unfortunately, time in Murfreesboro was interrupted by mad dashes back to the dorm room she was staying in where she was trying to organize the reply comments FMC filed at the FCC on digital audio broadcast. She was also recently outed as a “rocker” in a Philadelphia Weekly article. In August, Kristin hopes to conduct some interviews with folks from SoundExchange and iTunes as well as tidy up her home office.

Jenny Toomey
Jenny is taking a leave of absence as FMC’s Executive Director while she works on coordinating musicians in the election.

Michael Bracy
As the craziest of crazy political years moves forward, a number of critical policy debates are taking place below the radar, both setting a tone for upcoming policy decisions and encroaching on the valued August break. In particular, we have been very enthused about FMC’s involvement in the DAB and localism proceedings at the FCC and the developments with Low Power FM in Congress. Michael will escape the DC humidity for a few days in Massachusetts this weekend, then promises – no, in fact he pledges – to clean his office before Labor Day.

Brian Zisk
With the Induce Act on the table and Digital Radio at risk, there’s been a lot to talk about. The general thrust has been, please don’t implement hasty and premature legislation. Brian is also working on an article regarding the selling of live shows, and what musicians should look out for when working with others to do so.

Kristin Thomson
In July, Kristin was thrilled to be a panelist at the Southern Girls Rock and Roll Camp in Murfreesboro, TN where she talked about what record labels do for musicians and the basics of the music industry in front of a posse of 12-18 year old girls. Silently she remembered the depressing number of God’s-eyes and pet rocks she made at summer camps and thought how much cooler it would have been to have learned drums instead. Unfortunately, time in Murfreesboro was interrupted by mad dashes back to the dorm room she was staying in where she was trying to organize the reply comments FMC filed at the FCC on digital audio broadcast. She was also recently outed as a “rocker” in a Philadelphia Weekly article. In August, Kristin hopes to conduct some interviews with folks from SoundExchange and iTunes as well as tidy up her home office.

Jenny Toomey
Jenny is taking a leave of absence as FMC’s Executive Director while she works on coordinating musicians in the election.

Michael Bracy
As the craziest of crazy political years moves forward, a number of critical policy debates are taking place below the radar, both setting a tone for upcoming policy decisions and encroaching on the valued August break. In particular, we have been very enthused about FMC’s involvement in the DAB and localism proceedings at the FCC and the developments with Low Power FM in Congress. Michael will escape the DC humidity for a few days in Massachusetts this weekend, then promises – no, in fact he pledges – to clean his office before Labor Day.

Brian Zisk
With the Induce Act on the table and Digital Radio at risk, there’s been a lot to talk about. The general thrust has been, please don’t implement hasty and premature legislation. Brian is also working on an article regarding the selling of live shows, and what musicians should look out for when working with others to do so.

If you have any feedback, questions, or suggestions please send an email to suggestions [at] futureofmusic [dot] org, and let us know how we’re doing.

Thanks for your support and see you next time.

Jenny Toomey
Michael Bracy
Brian Zisk
Walter McDonough
Kristin Thomson
Peter DiCola