Washington, D.C.— The Future of Music Coalition and Media Access Project today filed a formal complaint with the Federal Communications Commission requesting clarification that Clear Channel’s practice of forcing local and independent recording artists to waive potential royalties as a condition of having a song considered for broadcast airplay is tantamount to payola.
In April, the FCC reached a settlement with Clear Channel and other broadcasters to end an investigation into payola allegations at some radio stations. Clear Channel and the other broadcasters agreed to pay a $12.5 million fine. In a separate agreement, they agreed to air 4,200 hours of local and independent music, and abide by “Rules of Engagement” aimed at ending the widespread practice of payola.
Clear Channel built an online form through which artists could upload MP3s of their songs to its music stations for consideration for broadcast, web streams and other potential services. As a term of submitting music, artists had to check a licensing agreement that waives their rights to digital performance royalties and any future public performance royalty that might be created by Congress. FMC exposed this license agreement language in a June 22 press release.
For years, FMC has contended that access to commercial radio is an uneven playing field – you can’t buy your way on the air, but if you don’t ante up you have no chance of gaining airplay. In FMC’s view, Clear Channel is simply extending this practice in a brazenly transparent way that clearly violates the letter and spirit of the payola settlement they signed just over three months ago.
“This is naked and transparent pay-for-play,” said Michael Bracy, FMC’s Policy Director. “The fact that Clear Channel would ask artists to give up a valuable royalty as a condition of even having their song considered for airplay questions their commitment to stamping out payola. The fact that the move comes as part of the payola settlement is unbelievable. Clear Channel has responded to allegations of payola with payola.”
Under the “rules of engagement” Clear Channel agreed to in April, a broadcaster must announce the sponsor of any music “for which any money, service or other valuable consideration is directly or indirectly paid.” It does not appear Clear Channel is currently making such announcements.
On Wednesday, Sen. Russ Feingold (D-WI) joined with FMC in questioning Clear Channel’s desire to end payola.
“The settlement between the federal government and major radio broadcast companies in March was an encouraging step toward greater access and increased air time for independent and local artists,” Feingold said. “But now it seems that simply relying on good faith to end the pervasive practice of payola may not be enough. The major radio companies should reaffirm their commitment to making air play decisions based on artistic merit instead of on the musicians’ or labels’ willingness to provide thinly veiled bribes through payola.”
FMC and Media Access Project fully believe Clear Channel will end this egregious grab at artists’ performance rights before the FCC issues a ruling.
FMC’s Request for a Declaratory Ruling | PDF
Future of Music Coalition is a national non-profit education, research and advocacy organization that seeks a bright future for creators and listeners. FMC works towards this goal through continuous interaction with its primary constituency — musicians — and in collaboration with other creator/public interest groups. More