While digital streaming services are often made the enemy in these discussions, at Wednesday’s hearing, witnesses besieged AM/FM radio – which does not have to pay performance rights. Radio stations were initially able to avoid paying these rights because radio plays could be considered promotional, but the continued existence of this standard lead copyright office head Maria Pallante to call the practice “indefensible” in a March 2013 testimony.
Non-profit licensing group SoundExchange, the RIAA, and the American Association of Independent Music (AAIM) piled on criticism of AM/FM radio for not being required to pay these royalties. However, Ed Christian, chairman of the Radio Music License Committee (RMLC), said the industry he represents was being scapegoated. "The radio industry is not some vast pot of riches that can be tapped as a bailout for the recording industry," said Christian.
Internet radio, along with other online streaming services, was also heavily criticized in the discussions because they are not required to pay performance royalties for recordings made before 15 February 1972, which means that Aretha Franklin does not get paid when Respect is played on digital streaming services. Songwriters of the pre-1972 songs do get a royalty payment, but Pandora and SiriusXM have faced several lawsuits over this standard.
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