National Academy of Recording Arts & Sciences®

Advancing the Rights of Music creators | summer 2009 Jam-packed GRAMMY Town Hall Gets Radioactive Music professionals and political officials engage in a lively discussion regarding the fight for a terrestrial radio royalty

Panelists Mary Wilson and Rep. John Conyers Jr. discuss the Performance Rights Act at the GRAMMY Town Hall Photo: Rick Diamond/WireImage.com GRAMMY Town Hall Sets Stage For trade issue, it is a private property issue, is paid by international radio stations and it is an individual issue for millions of monies collected internationally by foreign Radio Royalty Battle entertainers like Sam [Moore] and like performing rights societies, those monies Mary [Wilson].” She also stressed the don’t get repatriated to America. So you Legislators, music leaders gather for timely discussion on Performance Rights Act legislation would preserve the current have tens of millions of dollars every year terrestrial radio royalty for songwriters. that are collected by performing rights Discussing the business side, Rep. societies in Germany and Australia, France, Issa asserted, “I believe that the business England, everywhere…the money just models that are working — in satellite, disappears, and nothing ever comes back.” cable, and the Internet — have proven With the floor open for questions, that the success or failure of the model is Billboard Editorial Director Bill Werde not based on whether they pay some- noted that one broadcaster estimated thing to the [music creators].” the Performance Rights Act would cost Wilson pointed out that the Supremes’ the radio industry $7 billion and asked first No. 1 hit, “Where Did Our Love Go,” the panel if this figure was correct. has been in constant radio rotation since Rep. Conyers replied that the legislation 1964. Drawing a laugh from the crowd, allows for those stations making less than Josh Groban asks a question she said, “All the times that that record $1.25 million in revenue to pay $5,000 regarding the Performance Rights has been played on the AM and FM per year for playing unlimited recordings. Simon Renshaw and Rep. Darrell Issa discuss the Performance Rights Act at the GRAMMY Town Hall Act at the GRAMMY Town Hall Photo: Rick Diamond/WireImage.com Photo: Rick Diamond/WireImage.com stations, I [could] probably have retired Noncommercial stations would pay $1,000 on some island.” per year. However, he added, “What Just two days after the re-introduction Academy Vice President of Advocacy & In noting that the United States is one difference does it make? We want some of the Performance Rights Act in the U.S. Government Relations Daryl Friedman. of the few developed countries that does justice here…we’re talking about correcting House of Representatives and Senate, They were joined onstage by artist not pay musicians a radio performance a wrong that has gone unremedied for key congressional sponsors of the bill manager Simon Renshaw and former royalty, Renshaw said, “The money that too damn long.” came to Los Angeles during GRAMMY Supremes member Mary Wilson. Week to discuss the legislation with Special guests in the audience included more than 300 members of The Recording GRAMMY-winning songwriter, Academy Academy and music community at the Trustee and Advocacy Committee GRAMMY Town Hall on Feb. 7. Chair Lamont Dozier, 51st GRAMMY The legislation is the latest version nominee Josh Groban and R&B vocalist of a bipartisan effort to secure a royalty Sam Moore. for terrestrial radio airplay for vocalists, Rep. Conyers, a member of the House musicians and producers. Although of Representatives since 1964 and chairman satellite, cable and Internet broadcasters of the Judiciary Committee that oversees pay such a royalty, terrestrial radio stations all intellectual property matters, noted are currently exempt under federal the challenge of taking on the broad- copyright law. casters’ lobby. “This is going to be a Three of the House bill’s co-sponsors — serious struggle,” he said. Reps. Marsha Blackburn (R-Tenn.), John Rep. Blackburn suggested that the

Conyers Jr. (D-Mich.) and Darrell Issa issues at the heart of the bill cut across At the GRAMMY Town Hall: (l-r, standing) Daryl Friedman, Rep. Marsha Blackburn, Simon Renshaw, Rep. Darrell Issa, (R-Calif.) — appeared on the GRAMMY a wide spectrum of concerns: “It is an Mary Wilson, and Rep. John Conyers Jr.; (l-r, seated) Academy Chair Jimmy Jam, Josh Groban, Sam Moore, and Lamont Dozier Photo: Rick Diamond/WireImage.com Town Hall panel moderated by Recording economic issue, it is a jobs issue, it is a

2 CAPITOL TRACKS CAPITOL TRACKS 3 Academy Leadership Treks To Washington To Continue Royalty Battle President/CEO Neil Portnow and Academy Board members lobby for radio performance right

Following his GRAMMY telecast remarks Leahy (D-Vt.) and Reps. Howard Berman to approximately 20 million viewers that (D-Calif.), Marsha Blackburn (R-Tenn.) and included a call to action in support of a John Conyers Jr. (D-Mich.), which brought terrestrial radio performance right for music increased attention to the legislation and creators, Recording Academy President/ reinforced the need for music creators to CEO Neil Portnow came to Washington, be fairly compensated for their work. D.C., to deliver that message in person on The bill would close the “corporate

Feb. 23. Joining GRAMMY-winning artists radio loophole” that allows terrestrial Recording Academy leaders meet with the Tennessee delegation in Washington: (l-r) Academy Trustee Helen Sheryl Crow, Herbie Hancock, Emmylou broadcasters to play sound recordings Bruner, Academy South Regional Director Susan Stewart, Sen. Lamar Alexander (R-Tenn.), recording artist Jonathan Yudkin, Nashville Chapter Board members Anthony L. Smith and Drew Alexander, Sen. Bob Corker Harris, Patti LaBelle, members of Los without compensating the artists who (R-Tenn.), Nashville Chapter Advocacy Representative Darrell Brown, Warner Music Group’s Linda Bloss-Baum, Tigres Del Norte, Dionne Warwick, and created the recordings. Other platforms and Nashville Chapter Governor Rivers Rutherford Photo: Office of Sen. Alexander will.i.am, Portnow and other musicFIRST in the United States such as satellite Coalition representatives walked the halls and Internet radio pay this performance 40 Recording Academy members including by a House Judiciary Committee hearing of Congress to advance the Performance royalty, as do terrestrial broadcasters in leadership from Academy Chapters on the legislation on March 10. Testifying Rights Act, H. R. 878 and S. 379. A press most every other developed nation. nationwide came to Washington for a day on behalf of recording artists was Smashing conference also took place featuring As a follow-up to the press of grassroots advocacy. Joining other Pumpkins frontman Billy Corgan. Corgan, Sens. Orrin Hatch (R-Utah) and Patrick conference, on March 3 more than musicFIRST Coalition advocates, Academy a two-time GRAMMY winner, noted, “The members organized into teams and change to the law we are here to discuss visited with only redresses an outmoded, unfair practice members of that favors one participant’s needs over Congress and another. This legislation is simply a form key legislative of restoration to artists long overdue. staff through- Not every performer on a hit song is a out Capitol big name, and they might not see the Hill. As a result same windfall that a star might. One of these visits, can’t assume they participate in the several new merchandise or touring income that is members of linked to commercial radio success. Not Congress everyone who hears a song on terrestrial signed on radio buys a ticket or a T-shirt.” as co-spon- The House Judiciary Committee is sors of the expected to vote on the Performance legislation. Rights Act later this spring and the GRAMMY-winning artist Billy Music professionals convene at a press conference in Washington addressing the Performance Rights Act: Corgan testifies at a House The grass- Senate Judiciary Committee is also (l-r) will.i.am, Los Tigres Del Norte’s Luis Hernández and Oscar Lara, Sen. Orrin Hatch, Herbie Hancock, Patti LaBelle, Judiciary Committee hearing roots action expected to address the bill in the Recording Academy Trustee John Simson, and Neil Portnow Photo: Sean McCormick Photo: Paul Morigi/WireImage.com was followed coming months.

4 CAPITOL TRACKS CAPITOL TRACKS 5 concert industry is that the FCC has Relations Daryl Friedman and featured initiative focusing on the development Advocacy Roll Call adopted a geolocation database system panelists Kenneth D. Freundlich, entertain- of the local music industry. Organized by News briefs for the music community allowing concert operations to register used ment attorney, Freundlich Law; Jon Potter, Seattle Mayor Greg Nickels, the initiative’s frequencies into a dynamic database. The executive director, Digital Media Association; initial steps included conducting a five-year Conyers Takes Over IP Issues new devices would automatically check the and Jay Rosenthal, senior VP and general follow-up economic impact study, which Due to changes in U.S. House of Rep- database and avoid the spectrum, thereby counsel, National Music Publishers’ identified that the Seattle music industry resentatives’ chairmanships, Rep. Howard theoretically avoiding interference. Association. The panelists discussed recent directly created 11,155 jobs and that Berman (D-Calif.) was set to relinquish his Copyright Royalty Board rulings, how they 2,618 music-related businesses generated seat as chair of the House Judiciary Commit- Important Tax Issue Brought To Light affect music makers, and legal challenges an annual $1.2 billion in sales and $487 million tee’s Subcommittee on Courts, the Internet, A new section of the Internal Revenue to the rate court. in earnings in 2008. Next steps will focus and Intellectual Property. Rep. Berman’s Code could negatively impact artists and on helping to provide professional career departure caused great dismay to the music songwriters who take advances earlier Pacific Northwest Chapter, City Of Seattle development and affordable housing options community, who viewed the legislator as one than contracted, according to Recording Team For Music Initiative for musicians, expanded opportunities for resi- of Congress’ key champions of copyright Academy advisors Jay Cooper and Bobby In 2008–2009 The Recording Academy’s dents to experience live music performance, issues. But music creators may benefit from Rosenbloum, both of Greenberg Traurig’s Pacific Northwest Chapter was a key partner and increased support for innovative and Rep. John Conyers Jr.’s (D-Mich.) decision entertainment law practice. in developing the Seattle City of Music independent music businesses. to eliminate the subcommittee as it existed Cooper, entertainment attorney and this past December and move copyright advisor to The Recording Academy’s Re- issues to the Judiciary Committee, which he cording Artists’ Coalition, and Rosenbloum, chairs. Rep. Conyers is a longtime supporter The Recording Academy’s Deputy General Stimulus Legislation Includes $50 Million of music creators and the recipient of The Counsel, co-authored an editorial in the For The Arts Recording Academy’s inaugural GRAMMYs Dec. 13 issue of Billboard to shed light on on the Hill Award in 2001. The move makes this critical issue for music creators that had Academy among organizations helping to preserve funds for creation of arts jobs the House structure similar to that of the U.S. been previously unfamiliar to many music Senate, where the full Judiciary Committee attorneys and business managers. Section It was a provision that was hanging on losing their jobs just like those in other has jurisdiction over intellectual property. 409A deals specifically with nonqualified by a thread. But on Feb. 13 when the U.S. fields. Public funding for the arts is a deferred compensation and was created House of Representatives and Senate timely investment for states and munici- FCC Votes On Wireless Microphone Issue by Congress to prevent Enron-era abuses conference committee reconciled the two palities facing tough economic conditions. After defeating bills in Congress that in executive compensation, but could have versions of the so-called “stimulus package,” This infusion of funds through the could have had a negative effect on live the unintended consequence of penalizing $50 million was preserved for the National economic stimulus legislation will help music performance, the concert industry artists and songwriters who take advances Endowment for the Arts to save and create sustain organizations in the arts sector, dodged a bullet from the FCC on Nov. 4. earlier than contracted. Through RAC, The arts jobs in the troubled economy. their staffs and the services they provide.” In an FCC ruling, the commission voted Academy is working with the legal and Formally known as the American The NEA will distribute the entire unanimously to adopt rules to allow new business communities and the federal gov- Recovery and Reinvestment Act of 2009, $50 million among all the states to unlicensed devices into the wireless spec- ernment to address possible solutions to the the bill’s price tag is approximately $800 preserve and create jobs in nonprofit arts trum’s “white spaces.” Limitations on the Section 409A dilemma for recording artists. new devices make this a partial victory for billion. And yet the 0.006 percent of this sectors that have been most affected by The Academy and its members involved in Advocacy At SXSW funding pegged for the arts became the economic downturn. the concert production field, but vigilance The Recording Academy’s GRAMMYs controversial in the final days of debate. “I’m proud of The Academy and the will be necessary as the process progresses. on the Hill Initiative produced a panel on Thanks to the loud chorus of support other arts organizations that rallied around The decision provides that devices that rely March 20 for the Continuing Legal Education by many arts organizations, including this important cause,” said Academy solely on spectrum-sensing technology — Program at the South by Southwest music The Recording Academy, the funding Trustee and Advocacy Committee Chair which was supposed to have the ability to conference in Austin, Texas. The panel, was saved. Lamont Dozier. “Arts supporters need to detect and avoid wireless frequencies used titled Copyright Royalty Board: What In a letter sent to key legislators Feb. 11, make their voices heard to ensure that by microphones — will not be allowed in Happens In D.C. Doesn’t Stay In D.C., was The Academy and other arts advocates this important sector receives the funding the marketplace at this time due to poor moderated by Recording Academy Vice stated, “People in the arts sector are it requires and deserves.” testing results. The good news for the President of Advocacy & Government

6 CAPITOL TRACKS CAPITOL TRACKS 7 Academy Unites With Recording Congressional Guests Go In The Studio Artists’ Coalition GRAMMY congressional recording demonstration features producer “Supersized musicians’ lobby” created by alliance Mike Clink and guitarist Slash

of music professionals, and it makes Former Guns N’ Roses and Velvet bassist Chris Chaney — were recording perfect sense at this time to combine our Revolver guitarist Slash may not seem the closing track for a new motion efforts in the service of creators’ rights.” the likely choice to conduct a congres- picture. Observers watched and listened RAC was founded in 2000 by Don sional briefing. But the famed guitarist as Clink ran the session from behind the Henley and Sheryl Crow to address and acclaimed record producer Mike Clink soundboard, working to achieve the best legislative issues affecting the recording (Guns N’ Roses, Metallica) provided guests performance from the musicians in the artist community. On behalf of its from Washington with an illuminating look studio. After the final take, the guests membership of more than 150 recording at the work of the recording artist and entered the studio, asked questions artists, RAC has addressed issues such as record producer in a studio environment. of the musicians and Clink, and learned artist contract reform, media consolidation Part of a weekend congressional more about the recording process. and artist compensation. Henley, Crow briefing arranged by The Recording The briefing concluded with a tour of Recording Artists’ Coalition co-founder Sheryl Crow and RAC board members Jay Cooper Academy, the Feb. 7 event Behind The the Record Plant with President Rose testifies before Congress in 2000. Her attorney Jay and Simon Renshaw have testified on Scenes — Inside The Studio explored Mann-Cherney. Cooper (right) will continue to serve as an advisor to RAC, now a program of The Recording Academy Capitol Hill on behalf of artists, and the the relationship between artists and The congressional briefings continued Photo: Jim Saah organization has been at the forefront of producers while demonstrating a working the following morning with a backstage numerous policy and regulatory matters recording session at the renowned Record tour of Staples Center as it was being On Jan. 7 the Recording Artists’ affecting music creators. Renshaw and Plant Recording Studios in Hollywood, Calif. readied for the 51st GRAMMY Awards. Coalition announced an alliance with fellow RAC board member Irving Azoff “Members of Congress and legislative During the tour, congressional guests The Recording Academy that will allow will serve as advisors to The Academy’s staff have a good sense of artists’ and discussed policy issues that affect the RAC to continue its mission of advocacy RAC program. Former RAC National songwriters’ roles in creating a record. music community, from wireless spec- for recording artists as a program of Director Rebecca Greenberg has moved But the producers’ role has been somewhat trum allocation to copyright protection, The Academy rather than as a separate to a senior position reporting to Azoff at of a mystery,” noted Maureen Droney, with music professionals including artist nonprofit organization. RAC will become Ticketmaster Entertainment and Front Senior Executive Director of The Academy’s managers, producers and engineers in a an integral program of The Academy’s Line Management. Producers & Engineers Wing, which co- relaxed informal atmosphere. GRAMMYs on the Hill initiative, which The Academy opened its Washington, produced the event with advances the rights of music creators D.C., office in 1998 and has since launched The Academy’s Advocacy through advocacy, education and dialogue. numerous programs to advance music office. “The studio dem- Congressional Quarterly described the makers’ rights, including the music onstration is one more alliance as creating a “supersized musicians’ community’s only annual grassroots step in the continual lobby” on Capitol Hill. lobbying day in Washington, D.C. Academy process of shining a “In a constantly changing music leaders are frequently called upon to bright light on the industry landscape, protection of music testify before Congress and to advance important work of creators is more important than ever,” critical music policy. Daryl Friedman, The studio professionals.” said Recording Academy President/CEO Academy’s Vice President of Advocacy & The guests arrived Neil Portnow. “RAC and The Academy’s Government Relations, will oversee the as Slash and fellow

Advocacy department have worked new alliance. musicians — keyboardist Mike Clink; Gene Smith, district director for Rep. Howard Berman (D-Calif.); together closely over the years on behalf Teddy Andreadis, drum- Slash; and Edward McDonald, chief of staff for Rep. Howard Coble (R-N.C.), mer Kenny Aronoff and at Behind The Scenes — Inside The Studio Photo: Jordan Strauss/WireImage.com

8 CAPITOL TRACKS CAPITOL TRACKS 9 National Officers When economic times are tough, the light some important facts such as how honoring Stevie Wonder with the Library Chair arts mean business. the nonprofit arts and culture industries of Congress’ Gershwin Prize of Popular Jimmy Jam Vice Chair That has been the message of The generated more than $166 billion, sup- Song, hosted by President Obama and Neil Tesser Recording Academy and nearly every ported 5.7 million jobs and generated the first lady. Secretary/Treasurer Richard Perna arts-related organization in the country to $104.2 billion in household income last Just a little over a month into his Chair Emeritus Congress and the president. Thankfully, year, according to a recent study by presidency — and facing serious and Terry Lickona Americans for the Arts. President/CEO this message was heard and the urgent issues to address — our two- Neil Portnow $50 million provision was preserved for But as the economy shrinks, so do time GRAMMY-winning president took the National Endowment for the Arts in important arts programs. In his opening time out of his schedule to celebrate a Advocacy & Government Relations the American Recovery and Reinvestment statement at the hearing, Chairman Miller fellow GRAMMY winner and recognize Advancing the rights of music creators through advocacy, education and dialogue Act, despite the unjustified controversy noted, “Arts and music organizations are the positive effects his music has had 529 14th St. NW, Ste. 840, Washington, D.C. 20045 the provision created (see page 7). facing tough realities, which has a multiplier on our culture. In the audience were tel: 202.662.1285 • fax: 202.662.1342 On a recent visit to Washington, D.C., effect on workers and communities who members of the administration and [email protected] I had a productive meeting with rely on these sectors to create jobs and legislators from both parties who all www.grammy.com/advocacy Congressman George Miller (D-Calif.), generate local revenue.” took a break from their own important Vice President Daryl P. Friedman who chairs the House While I was glad to work to hear Stevie’s music performed Executive Assistant Education and Labor see Congress focusing in the historic East Room. Everyone in Erin Bach Committee and is on the economic impact attendance — including fellow artists Advisors interested in the of the arts on our society, Tony Bennett, Diana Krall, Martina Legislative Consultant, Greenberg Traurig Diane Blagman positive role the arts we must also recognize McBride, will.i.am, and others, along Advocacy Committee Chair can play in our job an additional point. The with those who watched the program Lamont Dozier General Counsel market and economy, arts provide a type of on television — was rejuvenated and Joel Katz as well as the impact “stimulus” to our country reminded of the resolute American spirit National Legal Counsel the recession is having that goes far beyond perfectly embodied in Stevie’s music. Chuck Ortner Deputy General Counsel in these sectors. We dollars and cents and, I can only imagine the policy makers Bobby Rosenbloum brainstormed about an as many financial experts in the room re-doubled their own efforts upcoming hearing in have noted, the psycho- to help solve our nation’s problems after his committee, and I logical state of our nation such a motivational evening. asked our experts at the is a major factor in the The Stevie Wonder tribute was yet GRAMMY Foundation recession. If pessimism another example of the power of the to provide Chairman Miller with relevant is allowed to pervade the air, it can arts during troubled times. As we embark data about arts education and work- result in a tangible, negative impact on on our nation’s recovery, we must Editors force issues. the economy. Therefore the arts have a remember the arts are a unique sector Tim McPhate Beth Fhaner A few weeks later, his committee held double-healing effect — they can lift the that can serve as a stimulus to both our David Konjoyan

the first in a series of hearings examining employment rate and our spirits. wallets and our souls. Design and Layout how the economy is impacting the arts This point was reaffirmed in my mind Orange Bike Design / Shachar Lavi [www.orangebikedesign.com] sector. Titled “The Economic And after my meeting with Chairman Miller. (Sound Policy is a regular column by Employment Impact Of The Arts And Later that evening, I had the opportunity Pre-Press and Printing Recording Academy President/CEO Challenge Graphics / Tara Curtis Music Industry,” this hearing brought to to attend a tribute at the White House Neil Portnow on Recording Arts issues.) ©2009 The Recording Academy®. All rights reserved.

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