A hearing is set for today where the House Judiciary Committee will examine the Performance Rights Act, which was introduced last year by Representatives Howard Berman (D-CA) and Darrell Issa (R-CA). The Act calls for artists to be paid a royalty when their music is played on the radio. 

Meanwhile, in a letter dated June 10, the Bush Administration offered its support to the effort to create the performance royalty. The letter, from Lily Fu Claffee, general counsel of the Department of Commerce (DOC), states, "The DOC believes that the changes contained in the legislation [H.R. 4789, the Performance Rights Act] are justified as a matter of fairness and equity. Granting copyright owners of sound recordings a full performance right coupled with extending an existing statutory license is an appropriate and workable approach to providing compensation to recording artists and record labels for the transmission of their works by over-the-air broadcast stations."

The letter also notes that if amended, "the Copyright Act would treat the owners of copyrights in all performable works alike, thereby bringing to an end the historic disparate treatment of owners of copyrights in sound recordings."

The entire letter can be read here.

At the House hearing, Commonwealth Broadcasting President/CEO Steve Newberry and ICBC Broadcast Holdings President/COO Charles Warfield both decried the proposed new royalties.Newberry said, "I have been in local radio for many years, and for the life of me, I fail to understand why the record labels are looking to local radio to make up its lost revenues, because weakening radio will ultimately harm the performers. Local radio is a purely promotional vehicle for artists. Radio airplay drives record sales. The system in place today has produced the best broadcasting, music and sound recording industries in the world. It is not broken and is not in need of fixing."