PUBLIC PERFORMANCE RIGHTS ORGANIZATIONS HEARING BEFORE THE SUBCOMMITTEE ON COURTS, THE INTERNET, AND INTELLECTUAL PROPERTY OF THE COMMITTEE ON THE JUDICIARY HOUSE OF REPRESENTATIVES ONE HUNDRED NINTH CONGRESS FIRST SESSION MAY 11, 2005 Serial No. 109–25 Printed for the use of the Committee on the Judiciary ( Available via the World Wide Web: http://www.house.gov/judiciary U.S. GOVERNMENT PRINTING OFFICE 21–140 PDF WASHINGTON : 2005 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 COMMITTEE ON THE JUDICIARY F. JAMES SENSENBRENNER, JR., Wisconsin, Chairman HENRY J. HYDE, Illinois JOHN CONYERS, JR., Michigan HOWARD COBLE, North Carolina HOWARD L. BERMAN, California LAMAR SMITH, Texas RICK BOUCHER, Virginia ELTON GALLEGLY, California JERROLD NADLER, New York BOB GOODLATTE, Virginia ROBERT C. SCOTT, Virginia STEVE CHABOT, Ohio MELVIN L. WATT, North Carolina DANIEL E. LUNGREN, California ZOE LOFGREN, California WILLIAM L. JENKINS, Tennessee SHEILA JACKSON LEE, Texas CHRIS CANNON, Utah MAXINE WATERS, California SPENCER BACHUS, Alabama MARTIN T. MEEHAN, Massachusetts BOB INGLIS, South Carolina WILLIAM D. DELAHUNT, Massachusetts JOHN N. HOSTETTLER, Indiana ROBERT WEXLER, Florida MARK GREEN, Wisconsin ANTHONY D. WEINER, New York RIC KELLER, Florida ADAM B. SCHIFF, California DARRELL ISSA, California LINDA T. SA´ NCHEZ, California JEFF FLAKE, Arizona ADAM SMITH, Washington MIKE PENCE, Indiana CHRIS VAN HOLLEN, Maryland J. RANDY FORBES, Virginia STEVE KING, Iowa TOM FEENEY, Florida TRENT FRANKS, Arizona LOUIE GOHMERT, Texas PHILIP G. KIKO, Chief of Staff-General Counsel PERRY H. APELBAUM, Minority Chief Counsel SUBCOMMITTEE ON COURTS, THE INTERNET, AND INTELLECTUAL PROPERTY LAMAR SMITH, Texas, Chairman HENRY J. HYDE, Illinois HOWARD L. BERMAN, California ELTON GALLEGLY, California JOHN CONYERS, JR., Michigan BOB GOODLATTE, Virginia RICK BOUCHER, Virginia WILLIAM L. JENKINS, Tennessee ZOE LOFGREN, California SPENCER BACHUS, Alabama MAXINE WATERS, California BOB INGLIS, South Carolina MARTIN T. MEEHAN, Massachusetts RIC KELLER, Florida ROBERT WEXLER, Florida DARRELL ISSA, California ANTHONY D. WEINER, New York CHRIS CANNON, Utah ADAM B. SCHIFF, California MIKE PENCE, Indiana LINDA T. SA´ NCHEZ, California J. RANDY FORBES, Virginia BLAINE MERRITT, Chief Counsel DAVID WHITNEY, Counsel JOE KEELEY, Counsel RYAN VISCO, Counsel SHANNA WINTERS, Minority Counsel (II) C O N T E N T S MAY 11, 2005 OPENING STATEMENTS Page The Honorable Lamar Smith, a Representative in Congress from the State of Texas, and Chairman, Subcommittee on Courts, the Internet, and Intel- lectual Property .................................................................................................... 1 The Honorable Howard Berman, a Representative in Congress from the State of California, and Ranking Member, Subcommittee on Courts, the Interenet, and Intellectual Property ................................................................... 29 WITNESSES Mr. Del R. Bryant, President and Chief Executive Officer, Broadcast Music Inc. (BMI) Oral Testimony ..................................................................................................... 1 Prepared Statement ............................................................................................. 3 Mr. Stephen Swid, Chairman and Chief Executive Officer, SESAC Inc. Oral Testimony ..................................................................................................... 8 Prepared Statement ............................................................................................. 9 Mr. Jonathan M. Rich, Partner, Morgan Lewis & Bockius, on behalf of ASCAP Oral Testimony ..................................................................................................... 15 Prepared Statement ............................................................................................. 16 Mr. Will Hoyt, Executive Director, Television Music License Committee (TMLC) Oral Testimony ..................................................................................................... 18 Prepared Statement ............................................................................................. 19 APPENDIX MATERIAL SUBMITTED FOR THE HEARING RECORD Prepared Statement of the Honorable Howard Berman, a Representative in Congress From the State of California, and Ranking Member, Sub- committee on Courts, the Internet, and Intellectual Property ......................... 29 Prepared Statement of the Honorable Elton Gallegy, a Representative in Congress from the State of California ................................................................ 30 ASCAP constent decree (2000) ............................................................................... 31 BMI consent decree (1966) ...................................................................................... 55 Supplemental Statement of Stephen Swid, Chairman and Chief Executive Officer, SESAC Inc. .............................................................................................. 64 Supplemental Statement of Jonathan Rich on behalf of ASCAP (May 12, 2005) ...................................................................................................................... 80 Supplemental Statement of Jonathan Rich on behalf of ASCAP (May 17, 2005) ...................................................................................................................... 82 Additional Testimony of the Television Music License Committee (TMLC) ....... 86 Prepared Statement of Keith F. Meehan, Executive Director, Radio Music License Committee ............................................................................................... 87 Prepared Statement of Russell R. Hauth, Executive Director of the National Religious Broadcasters Music License Committee (NRBMLC) ........................ 97 Letter from John S. Orlando, Executive Vice President, Government Rela- tions, National Association of Broadcasters (NAB) ........................................... 101 Supplemental questions for BMI ............................................................................ 104 (III) IV Page Responses to Subcommittee questions from BMI ................................................. 106 Supplemental questions for SESAC ....................................................................... 111 Responses to Subcommittee questions from SESAC ............................................ 114 Supplemental questions for ASCAP ....................................................................... 123 Responses to Subcommittee questions from ASCAP ............................................ 125 Supplemental questions for Television Music License Committee ...................... 129 Responses to Subcommittee questions from Television Music License Com- mittee .................................................................................................................... 131 PUBLIC PERFORMANCE RIGHTS ORGANIZATIONS WEDNESDAY, MAY 11, 2005 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON COURTS, THE INTERNET, AND INTELLECTUAL PROPERTY, COMMITTEE ON THE JUDICIARY, Washington, DC. The Subcommittee met, pursuant to call, at 4:07 p.m., in Room 2142, Rayburn House Office Building, the Honorable Lamar Smith (Chair of the Subcommittee) presiding. Mr. SMITH. The Subcommittee on Courts, the Internet, and Intel- lectual Property will come to order. Without objection, the Chair- man and the Ranking Member will make their entire opening statements a part of the record. If the witnesses will stand, I will swear them in, and we will get to your testimony. [Witnesses sworn.] Mr. SMITH. Thank you, please be seated. Would you all object if I dispense with your introductions? That will save another few minutes. I will simply say that our witnesses today are Del Bryant, Presi- dent and Chief Executive Officer, Broadcast Music Inc. (BMI); Ste- phen Swid, Chairman and Chief Executive Officer, SESAC, Inc.; Jonathan M. Rich, Partner, Morgan Lewis & Bockius, on behalf of ASCAP; and Will Hoyt, Executive Director, Television Music Li- cense Committee (TLMC). Mr. SMITH. We welcome you all, and Mr. Bryant—by the way, I don’t see any name tags. Oh, they are the other way. Okay. Well, you all know who you are. But, Mr. Bryant, we will begin with you. Please limit your testi- mony to 5 minutes or less so that we will have time for questions. TESTIMONY OF DEL R. BRYANT, PRESIDENT AND CHIEF EXECUTIVE OFFICER, BROADCAST MUSIC INC. (BMI) Mr. BRYANT. Thank you. I push the button. Mr. SMITH. Yes. Mr. BRYANT. Mr. Chairman and Ranking Member, thank you for the opportunity to testify today. My name, as the Chairman men- tioned, is Del Bryant and I am President and Chief Executive Offi- cer of BMI. America’s copyright laws have provided a firm foundation to sup- port the vibrant, creative community whose works fuel a robust and growing entertainment industry. BMI is proud to represent the (1) 2 public performing rights of over 300,000 songwriters, composers and publishers. The BMI family includes icons in American music and today’s most successful creators from Hank Williams, Senior to Toby Keith; Billie Holliday to Norah Jones; Patsy Cline to Shania Twain; Santana to Gloria Estefan; the Eagles to 3 Doors Down; John Wil- liams to Danny Elfman, Ray Charles to Jamie Foxx, and Miles, Mingus and Monk to Herbie Hancock. And