® Chuck SUMMER 2007 SUMMER ® ® celebrate new anti-payola radio practices. ® Janine Wilson (playing harmonica, center), D.C. music legend Photo: Paul R. Morigi/WireImage.com R. Paul Photo: Jonathan Adelstein Tracks Tracks and independent singer/songwriter ADVANCING THE RIGHTS OF THE MUSIC COMMUNITY THE RIGHTS OF ADVANCING FCC Commissioner Capitol Brown The musicians were part of a Recording Academy delegation sent to the FCC to show support for its part of a Recording The musicians were to curb payola. efforts NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES & ARTS OF RECORDING ACADEMY NATIONAL INDEPENDENT MUSIC GETS MUSIC INDEPENDENT FCC RECEPTION AT GOOD Capitol

Capitol ®

Tracks ®

NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES® 529 14th St. NW, Ste. 840 Washington, D.C. 20045 FCC And Broadcasters Reach Wireless Concert Technologies At Risk Payola Settlement Recording Academy works with FCC and Congress to prevent interference Academy, other organizations requested FCC action

On April 13, the Federal Communi- cations Commission and four major radio The efforts by The broadcasters released a consent decree “ to settle allegations of payola. The broadcasters agreed to $12.5 million Recording Academy and in payments and a side agreement with

independent labels to increase airtime numerous other advocacy During a visit to Sen. Lamar Alexander’s Washington, D.C., office earlier this year, a coalition of music and for independent music. technology representatives briefed the senator about the “white spaces” issue. (l-r): Daryl Friedman of The Recording Academy, Steve Gibson of the Grand Ole Opry, Sen. Alexander, Paul Gallo of the Professional Audio CBS Radio, Citadel, Clear Channel groups were extremely Manufacturers Alliance, and Ryan Smith of Shure Microphones and Entercom have all agreed to the set- tlement with the FCC. In addition to the helpful in paving the way Imagine the lights going up on your manufacturers and arts presenters that multi-million dollar payments, the four favorite artist in concert. You’re sitting in is working to head off two dangers. First, broadcasters have agreed to new practices for this agreement. those fourth-row center seats you worked The Academy is supporting legislation designed to prevent pay-for-play activities, ” so hard to get. The person next to you is by Rep. Bobby Rush (D-Ill.) that would such as compliance officers and training — FCC Commissioner Jonathan Adelstein checking his e-mail on a handheld device require unlicensed device manufacturers for radio staff. The radio groups also and suddenly the artist’s voice is over- to demonstrate that the new devices worked with the American Association of shadowed by static and interference. Now will not interfere with existing technolo- Academy filed a request with the FCC Independent Music (A2IM) to adopt a set imagine this scenario playing out in gies. Second, The Academy is fighting calling for a consent decree that would of “Rules of Engagement” with the concerts all over the country, Broadway bills that would allow potentially interfering ensure significant financial payments independent sector. shows, political events and even churches. devices into the spectrum before testing by the broadcasters as well as revised The developments follow several The issue that raises this nightmare is completed. The Academy has filed practices going forward. The Academy actions by The Recording Academy scenario for the concert industry is the a statement with the FCC asking it to has also endorsed the A2IM Rules and other leading artist and community possibility of new unlicensed devices include wireless music technology in of Engagement. organizations. Earlier this year, The operating within the wireless spectrum its testing. “The efforts by The used by microphones, instruments and In addition to lobbying in Washington, Recording Academy and monitors. If some in Congress get their The Academy briefed officials from numerous other advocacy way, the “white spaces” of the wireless Congress and the FCC in Los Angeles groups were extremely spectrum — currently used by the live during GRAMMY Week in February. As helpful in paving the way concert industry — may soon become Staples Center was being prepared for for this agreement,” noted available to tens of millions of new devices the 49th Annual GRAMMY Awards tele- FCC Commissioner Jonathan ranging from handheld e-mail devices to cast, the delegation from D.C. had an Adelstein. “I applaud the garage door openers to baby monitors, opportunity to see firsthand just how artist community for engaging causing significant interference to the much the concert industry relies on on the issue, and encourage concert technologies. Simply put, these wireless technologies. The Academy and its mem- are devices that do not require the top As this issue progresses, The Academy bers to stay involved and help level wireless transmission qualities that are will seek input and involvement from us keep music diversity on expected from the concertgoing public. members to help ensure that this technol- FCC Commissioner Jonathan A2IM President Richard Bengloff the radio.” Adelstein, who Adelstein Photo: Jim Saah Photo: Christine Butler The Recording Academy is part of a ogy, so important to the music community, Continued on page 5 broad coalition of music organizations, is protected.

2 CAPITOL TRACKS CAPITOL TRACKS 3 MusiCares Hosts Congressional Briefing Closed-door session with managers addresses musicians’ insurance needs

On Feb. 10, one day before the public has been incredibly powerful. 49th Annual GRAMMY Awards, MusiCares Mental illness and addiction in some way held a closed-door meeting with four touches every American family.” members of Congress and more than 50 Legislation requiring insurance com- leading artist managers on the need for panies to treat mental illness — including a federal mental health parity bill that addiction — in the same manner as grants access to addiction and mental physical illness is progressing through the health treatment. Representatives Joe Senate. The Senate Health, Education, Crowley (D-N.Y.), Patrick Kennedy (D- Labor and Pension Committee passed R.I.), Grace Napolitano (D-Calif.) and the Mental Health Parity Act of 2007,

Jim Ramstad (R-Minn.) each presented which now requires full Senate action. Rep. Jim Ramstad Rep. Grace Napolitano their views and heard personal accounts In the House, Rep. Kennedy intro- Photo: Rick Diamond/WireImage.com Photo: Rick Diamond/WireImage.com from the distinguished audience. duced the Paul Wellstone Mental Health “I have been moved and overwhelmed and Addiction Equity Act, HR 1424, by the turnout everywhere we go as we named after the late senator who cham- reforms that are so singularly important President Kristen Madsen. “As discuss mental health parity with different pioned the cause. The bill’s 263 co-sponsors to the music community is matched by MusiCares continues its efforts to communities across our country,” said aim to ensure that health plans will offer their sensitivity to the indefensible cloak improve the conditions for music makers, Rep. Kennedy. “It’s one thing to know you coverage for mental health care. of secrecy and shame that still lingers we are proud to stand together with have support from all directions, but to “The passion of the congressional around issues of addiction and mental these leaders and are energized by this hear it and feel it from members of the leaders who are championing these health,” stated MusiCares Senior Vice joint effort for equity.”

Payola Settlement Continued from page 2 briefed a Recording Academy delegation historic opportunity to increase the radio on this subject in 2005, is a leading crusader exposure of the vibrant independent against payola. music sector. We now look forward to The A2IM agreement calls for a number implementing the new rules to the benefit of procedures that prevent discrimination of independent labels, independent against independent music by the broad- artists and radio listeners,” noted A2IM casters, such as requiring nondiscriminatory President Richard Bengloff. The New York- access to music programmers, as well based trade association was created in as the prohibition of any compensation 2005 to advance the interests of the in exchange for playing music. In addition, independent sector. the radio groups have agreed to air 8,400 As details of these new practices are half-hour blocks of programming dedicated solidified, The Academy will notify its Rep. Joe Crowley Rep. Patrick Kennedy Photo: Rick Diamond/WireImage.com Photo: Rick Diamond/WireImage.com to independent music. members about the procedures for gaining “The Rules of Engagement present a access to this airtime.

4 CAPITOL TRACKS CAPITOL TRACKS 5 Musical Chairs (And Co-Chairs) Key Music Caucus Re-formed In 110th Congress brings new leadership to music-related committees

The power shift during the midterm roles. Senate Judiciary Chair Patrick New Congress elections will have an impact on the music Leahy (D-Vt.) is nothing short of a crusader New session also sees caucus Co-Chair Hoyer elected majority leader community. It is not the party shift from for intellectual property rights. In the Republican to Democratic control in itself House, Judiciary Committee Chair John The Recording Arts and Sciences that is the main factor (music creators and Conyers (D-Mich.) has demonstrated a Congressional Caucus, formed with major copyright owners have broad support on consistent track record of support for input by The Recording Academy just two both sides of the aisle), but the change in songwriters and artists, while Lamar years ago, has been re-established in the leadership and committee chairmanships Smith (R-Texas), the ranking Republican new Congress. Once again, the caucus is that put new hands at the wheel driving on the full committee, was the driving co-chaired by Rep. Steny Hoyer (D-Md.), the creative community’s agenda. force behind last session’s efforts to now majority leader of the House, and House Leadership. With Nancy Pelosi modernize music copyrights for the Rep. Mary Bono (R-Calif.), a consistent (D-Calif.) as new speaker of the House digital age. Howard Berman (D-Calif.), supporter of music creators’ rights. and Steny Hoyer (D-Md.) as new majority another key ally of the creative commu- Hoyer was elected majority leader on leader, the music community will be well nity, will chair the subcommittee overseeing Nov. 16 by his Democratic Party peers represented by pro-music legislators now intellectual property. Leahy and Conyers in the House. The position is second in controlling the House. Pelosi, a recent have both been honored with the rank only to Speaker of the House Nancy guest at The Academy’s GRAMMYs on GRAMMYs on the Hill Award. Pelosi (D-Calif.). the Hill Awards Dinner, is a supporter of A variety of key issues face the cre- The RASCC serves to educate Congress music and the arts. Hoyer, a GRAMMYs ative community in the coming two about the importance of recorded music on the Hill Award recipient and co-chair years, and how many the new Congress and the music community to the country’s RASCC Co-Chair Rep. Steny Hoyer accepting his of the Recording Arts and Sciences will tackle remains to be seen. But with a cultural and economic life. 2005 GRAMMYs on the Hill Award Photo: Douglas A. Congressional Caucus, is a longstanding fresh legislative calendar and an active The members of the RASCC share a Sonders/WireImage.com friend of music creators. music community in Washington, many belief that support for the individual Judiciary Committees: Copyright’s are optimistic that creators’ interests will recording professional is essential to the creative life of the nation. As it did in the Command Center. In the all-important be advanced. The Recording Academy previous Congress, the caucus will seek Judiciary Committees in both the House — with its Advocacy office in D.C. and to advance the rights of musicians, song- and Senate, longtime music community member activists across the country — writers, singers, producers and other supporters on both sides of the aisle will will continue to work on the front lines recording professionals through increased serve in the chair and ranking Republican to protect music makers’ rights. awareness of the needs of such individuals. Members of the caucus also participate in many educational events, often in cooperation with The Recording Academy. Programs such as Recording Arts Day on Capitol Hill and the GRAMMY Town Hall include caucus members as participants. Co-Chair Bono noted upon the re- establishment of the caucus, “Steny and I look forward to working with The Recording Academy and other organizations in protecting the rights of one of our most Recording Arts and Sciences Congressional Caucus Rep. John Conyers Rep. Lamar Smith Rep. Howard Berman valuable natural resources — America’s Co-Chair Rep. Mary Bono Photo: Jim Saah music makers.”

6 CAPITOL TRACKS CAPITOL TRACKS 7 SOUNDSOUND POLICYPOLICY by Neil Portnow

On a form unified proposals, we probably Digital Tempest Forecasted At recent trip to won’t like the results of congressional Washington, I action — or inaction. When we’re united, Leadership Music Program was asked by we’re a powerful force. Academy-produced panel looks into the licensing crystal ball a music lobby- As an example of this point, it is ist if it was instructive to look at compensation for difficult for terrestrial radio broadcasts in the United The Recording States compared to the United Kingdom. Academy to In America, broadcasters pay songwriters represent so (and publishers) about 3 percent of many different revenue, while paying artists (and their sectors of the labels) nothing. In the UK, like most of music business. I was surprised by the the world, broadcasters pay royalties to comment — but then I remembered both artists and writers. where I was. In D.C., there is a unique You might think that since other tendency to see the world as narrowly countries have to pay both artists and defined special interests. But outside writers, each creator would get a smaller the beltway — and certainly at The share. But the opposite is true. In the UK, Academy — we see things differently. artists and writers share 10 percent of Representing songwriters, artists, broadcaster revenue. So even though Taming the “Tempest” (l-r): Daryl Friedman, Brian Ashby, Victoria Shaw, Gary Churgin and Lee Knife producers and engineers is as seamless they pay artists, they actually pay song- as listening to a recording itself. When writers more of their revenue than their Five industry leaders gathered in subject to a compulsory license (a position I hear a new track, I am aware of the U.S. counterparts. Nashville in November for a special opposed by the songwriting community, unique contributions of each creator: the In a study commissioned by The panel on the future of digital music since it would likely reduce songwriter songwriters’ composition upon which Recording Academy, we found this to licensing. The Digital Tempest, produced payments to a set government rate), and everything else is built; the artists’ inter- be true in each foreign market we by The Recording Academy’s office of legislation designed to ensure new tech- pretation that brings that song to life; and analyzed. Songwriters receive a higher Advocacy & Government Relations as nologies compensate creators. the studio professionals’ skill to capture percentage of revenue in countries part of Nashville’s famed Leadership Given the diverse perspectives of the the magic for us all to enjoy. And yet, where broadcasters must also pay artists. Music program, presented a variety of panelists, views were divergent. However, the parts come together to create some- When writers and artists are unified in views from the publishing, digital and there were points of agreement, particularly thing magically compelling and whole. demanding fair compensation for all music wireless sectors. on the need for modernization of copyright So it is with creators’ rights. While writ- rights, the pie increases for all creators. Moderated by Academy Vice President law for the digital age, and on the impor- ers, artists, producers and engineers each So to answer that fellow in of Advocacy & Government Relations tance of establishing a vibrant — and have unique interests and challenges, Washington who posed the question: Daryl Friedman, the panel consisted legal — digital music marketplace. it’s through their combined effort that There is nothing more natural, more of Gary Churgin, CEO of the Harry Fox Leadership Music is a 16-year-old pro- advocacy can be most compelling. I rewarding, and more harmonious than Agency; Lee Knife, general counsel for gram designed to further communication cannot count how many members of representing the rights of all music cre- the Digital Media Association; Brian among stakeholders in the entertainment Congress have told me repeatedly how ators. All of us at The Recording Ashby, assistant general counsel for business and to assist established leaders delighted they are to see the entire Academy feel privileged to do so. Verizon Wireless; and Victoria Shaw, a in their roles as industry decision makers. music community coming together during (Sound Policy is a regular column by successful Nashville songwriter. The The audience consisted of 50 industry our Recording Arts Day on Capitol Hill. Recording Academy President Neil panelists discussed the recent U.S. leaders, selected by the Leadership Music And they also issue a warning: If we don’t Portnow on recording arts issues.) Copyright Office ruling that ringtones are program for the 2006–07 class year.

8 CAPITOL TRACKS CAPITOL TRACKS 9 downloads of music aired on XM. “This the world’s leading sources of pirated GRAMMY Town Hall Goes South isn’t home taping like it used to be,” intellectual property. For The Winter noted Fernandez. In closing, Lickona reminded the After Friedman showed the attendees audience of their ability and power to Congressman and Academy Chair lead community forum addressing an English-language music download effect change and influence policymakers technology and the music industry site based in Russia that permits users at all government levels, encouraged to download a broad range of music them to stay tuned to local and national at minimal prices, Rep. Meek discussed issues, and recommended attendees how his new role on the Trade Sub- utilize the Advocacy Action Web site to committee of the House Ways and Means stay connected to their elected leaders. Committee has led him to become an The event was presented jointly by informed opponent of international The Recording Academy’s Florida Chapter music piracy. In fact, just one week prior, and office of Advocacy & Government Meek attended his first subcommittee Relations and supported by FilMiami, hearing — on trade with China, one of GTC Media, SAE and SunTrust.

Terry Lickona, Kendrick Meek and Néstor Torres joined a panel and audience of industry leaders at the GRAMMY Artist Reps Plan Legislative Priorities Town Hall Photo: John Parra/WireImage.com

“We’re living in a new paradigm!” Daryl Friedman, The Academy’s Vice declared Latin GRAMMY-winning artist President of Advocacy & Government Néstor Torres at the GRAMMY Town Hall Relations, moderated the panel, which event held Feb. 21 at the Intercontinental discussed a range of topics in addition to Hotel in Miami. Torres aptly summed up the latest intersection of art and technology, a key point of discussion at the advocacy including travel visa restrictions and costs event, namely that new technology has that affect touring artists, music piracy, created both opportunities and challenges new satellite radio devices that enable for music industry creators and businesses virtual downloads, and the need for arts — a point not lost on a U.S. congressman, education support. The Recording Academy’s Chairman, and On the new technology issue, Vega an audience of music professionals from discussed the opportunities created for the Florida Chapter community. many of his clients — who include multi- Torres was joined on the panel by GRAMMY and Latin GRAMMY winner U.S. Rep. Kendrick Meek (D-Fla.) and Luis Miguel and 12-time Latin GRAMMY Representatives of the four major organizations representing recording artists met in December for a legislative retreat Academy Chairman Terry Lickona, along winner Juanes — by embracing new tech- to discuss issues to address with the new Congress. Organized by The Recording Academy, participants from the with Ralph Fernandez, vice president enabled ways of reaching consumers. American Federation of Musicians, the American Federation of Television and Radio Artists, and the Recording Artists’ of Latin music at the RIAA, and Michel Conversely, Fernandez talked about Coalition were in attendance. Pictured (l-r): Diane Blagman (Greenberg Traurig), Erik Huey (Venable), Daryl Friedman (The Recording Academy), Patricia Polach (AFM), Hal Ponder (AFM), Rebecca Greenberg (RAC), Terrie Bjorklund Vega, vice president of Latin music at the RIAA’s suit against XM Satellite Radio (AFTRA) and Jay Rosenthal (RAC). the William Morris Agency. over devices that allow virtually free

10 CAPITOL TRACKS CAPITOL TRACKS 11 Advocacy Roll Call Given concerns that the pairing would faction over the complaint. Ma Xiushan, create a monopoly in the satellite radio vice secretary general of the China Policy briefs for the music community industry, many questions will be asked by Intellectual Property Society, argued it Help For Touring Artists May Be At Hand Additionally, to help educate the music numerous agencies — including the FCC, was unrealistic for other countries to hold At a time when global artistic community, The Academy’s office of the Department of Justice and the China to a higher standard since it took exchange is perhaps more important Advocacy & Government Relations Federal Trade Commission — before two centuries for Western countries to than ever, those wishing to present foreign partnered with the Memphis Chapter to the merger will or will not be approved. achieve the current level of intellectual artists in the United States are finding it present a panel at the International Folk The proposed chairman of the merged property rights protection and “it increasingly difficult and expensive to Alliance Conference. “Touring Without company, Sirius Satellite Radio CEO Mel became obviously unfair to demand that obtain visas. Delays of up to six months Turbulence: Artist Visas And International Karmazin, has appeared before members China, which became a WTO member in for processing — or a premium processing Travel” was presented on Feb. 23 as part of Congress for hearings in both Houses. December 2001, accomplish the mission fee of $1,000 — have put unreasonable of the conference agenda. within years.” burdens on U.S. presenters, foreign The panel included David Sage from Fair Use Act Introduced U.S. Trade Representative Susan C. artists and local artists who plan to perform the Department of Homeland Security; On Feb. 27, Reps. Rick Boucher (D-Va.) Schwab said in a statement that “China alongside the guest artist. Montserrat Miller, an immigration attorney and John Doolittle (R-Calif.) introduced the has taken numerous steps to improve The Recording Academy has been formerly on the staff of the Senate Freedom and Innovation Revitalizing U.S. its protection and enforcement of intellec- working with other arts organizations to Subcommittee on Terrorism, Technology Entrepreneurship Act of 2007, Fair Use tual property rights, [but] we have not improve the situation, including supporting and Homeland Security; Heather Noonan, Act HR 1201. The Recording Academy been able to agree on several impor- legislation that would require faster vice president of advocacy for the opposes this legislation, primarily because tant changes to China’s legal regime processing for artist visas without the American Symphony Orchestra League; it would seek to undo the progress made that we believe are required by China’s $1,000 premium processing fee. Rep. booking agent Robyn Boyd of Wooden by the Supreme Court’s Grokster decision WTO commitments.” Howard Berman (D-Calif.) introduced Ship Productions; and moderator Daryl by allowing infringing technologies to such legislation on March 5. Arts Require Friedman of The Academy. thrive in the marketplace. Recording Arts Day And GRAMMYs Timely Service (ARTS) Act HR 1312 On The Hill provides for expedited processing of Satellite Radio Merger Proposed U.S. Files Against China Mark your calendar for Sept. 5 for the visas for artists submitted by or on behalf XM and Sirius announced in February The U.S. government filed two trade 2007 Recording Arts Day, The Recording of nonprofit organizations. their intention to merge the two companies. cases with the World Trade Organization Academy’s annual day for the music com- against China on April 16. The complaints munity to meet with national legislators centered on copyright protection and the in Washington, D.C. GRAMMYs on the restrictions on the sale of U.S. copyrighted Hill, the dinner honoring a U.S. senator, materials such as books, music, videos representative and artist, will be held and movies. later that evening at the historic Willard China expressed regret and dissatis- Intercontinental Hotel.

More Information @ GRAMMY.com GRAMMY.com is the best real-time source of information on Recording Academy initiatives and news, as well as up-to-the-minute stories affecting the industry, technology and artists. Go to www.grammy.com/news and click on the “Advocacy” and “ArtsWatch” links for the latest stories, and www.grammy.com/action for American Symphony Orchestra League’s Heather Noonan (left) and Department of Homeland Security’s David Sage tools to make your opinions heard on Capitol Hill. at the “Touring Without Turbulence: Artist Visas And International Travel” panel Photos: Shane Carr

12 CAPITOL TRACKS CAPITOL TRACKS 13 NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC.

National Officers Chairman Is 11/100ths Of A Cent Too Much To Terry Lickona Vice Chairman Pay For A Track? Jimmy Jam Secretary/Treasurer Richard Perna Webcasters should compensate artists fairly by Daryl P. Friedman Chairman Emeritus Daniel Carlin Did you hear about the webcaster This procedure was requested by the Campaigns against the new rates have President Neil Portnow who called his electric company to ask webcasters and granted by Congress. largely positioned the CRB’s decision as for a discount? The Internet radio operator After reviewing all the testimony and a boon to the major labels. But, in fact, Advocacy Advisors was having trouble making ends meet, analyzing market data, the CRB increased more than two-thirds of the money col- Legislative Consultant, Greenberg Traurig so he figured the utility company would the royalty rate to artists for the current term lected by SoundExchange goes directly Diane Blagman Advocacy Committee Chair understand and give him a below-market to what the experts on the CRB deter- to artists and independent labels. Gerald Veasley rate. After all, it was in the electric com- mined as fair market value. Commercial The music industry has seen a dramatic General Counsel pany’s interest to keep him in business as webcasters are required to pay 11/100ths shift away from CDs and toward digital Joel Katz National Legal Counsel a paying customer, right? of a cent for each track per listener in downloads, ringtones and webcasts. And Chuck Ortner I realize this scenario is preposterous; 2007, with upward adjustments each despite the debates about artist compen- Deputy General Counsel Bobby Rosenbloum no business would expect its utility to year. Other provisions were made for sation, Internet radio is going to survive. accept a rate below fair market value. And minimum payments per channel as well While we welcome the CRB’s decision to For more information, please contact The Academy’s yet, somehow, webcasters believe that as lower rates for noncommercial stations. set a fair value for music, we must remain office of Advocacy & Government Relations: artists — who provide the very backbone So if a webcaster were to stream 15 vigilant against those who expect artists to Vice President of the webcasters’ services — should be songs to one listener over a one-hour subsidize business interests. This decision Daryl P. Friedman Executive Assistant paid in just such a reduced manner. period it would have to pay 1.65 cents. As by the CRB recognizes the fair value of April Canter Here’s the backstory: Webcasters and the webcaster attracts more listeners, the the music and was arrived at through 529 14th St. NW, Ste. 840, Washington, D.C. 20045 other digital radio stations pay artists for costs go up, as do the opportunities for comprehensive, in-depth proceedings tel: 202.662.1285 • fax: 202.662.1342 the performances of their sound recordings. the webcaster to increase revenue. that considered all arguments from all [email protected] The U.S. Copyright Office’s Copyright Webcasters decried the decision, interested parties. Now that the CRB has www.grammy.com/advocacy Royalty Board (CRB) is charged with saying the increase in rates will strain their spoken, there will no doubt be efforts to determining the rates. From February business, or worse, drive them out of convince Congress to reverse this hard- 2005 to January 2007, the CRB heard business. It is audacious for giant Internet won understanding of the value of music. evidence to determine the fair market companies with radio components to claim If you believe, as I do, that artists value for resetting the rate at which web- they can’t afford to pay artists. And conces- should be paid fairly for their performances Capitol casters pay artists, independent labels sions have been made for the smallest on Internet radio, I encourage you to take ® and record companies for the use of their webcasters to broadcast for only $500 year. action. SoundExchange offers abundant Tracks work. The CRB received testimony from Looking at the industry as a whole, information regarding this issue as well as a nearly 50 witnesses, including artists, webcaster revenues have increased tenfold quick and easy way to let your elected Editors webcasters, the Digital Media Association, in just three years, from $50 million in 2003 leaders know you support fair compensa- Jennifer Cebra Courtney Kemp economists, representatives from to $500 million in 2006. Yet during the past tion for artists. I encourage you to learn David Konjoyan major and independent labels and seven years the rate paid to artists and more by visiting www.soundexchange.com. Art Direction and Design SoundExchange, an independent labels has remained flat. In fact, in 2006 (Daryl P. Friedman is the Vice President of Top Design nonprofit organization that collects and artists were paid on average $360 each, for Advocacy & Government Relations for The [www.topdesign.com] distributes the royalties to artists as well the whole year, for the performance of their Recording Academy. He also serves on the Pre-Press and Printing as independent and major labels. works on Internet radio. board of directors for SoundExchange.) Challenge Graphics / Tara Curtis

©2007 The Recording Academy®. All rights reserved.

14 CAPITOL TRACKS CAPITOL TRACKS 15