WASHINGTON, D.C.—The Future of Music Coalition (FMC) urges the U.S. Copyright Office to be wary of efforts by the Recording Industry Association of America (RIAA) to establish themselves as the sole and exclusive collection agent for Digital Performance Royalties for sound recordings. Instead, the Coalition has proposed that an independent body would be the more appropriate vehicle to collect and distribute these funds as well as other monies including the Audio Home Recording Act of 1992 royalties.
“I’ve known and respected John Simson for a long time,” said FMC Executive Director Jenny Toomey, referring to the leader of the RIAA effort. “I’m sure he has the best intentions at heart. Given the inherent conflicts in trying to represent competing interests, however, we simply do not see how the RIAA could be successful in simultaneously representing artists and independent labels at the same time that it is a trade organization for the major record labels. We have already been contacted by artists and smaller labels who have expressed concern about a proposed government policy that could concentrate extraordinary power in one sector of the private economy. The RIAA does not speak for the entire music industry; it is funded by and solely represents the interests of the five major record labels.”
FMC supports the concept of a third-party collective that would be entrusted with the task of collecting Digital Performance Royalties for Sound Recordings and other monies for parties other than the five major recording labels. This would include independent record labels and recording artists, in addition to performers who own their own master recordings.
By encouraging the creation of such an organization, FMC maintains that the interests of all stakeholders, including the RIAA and the five major record labels, will be protected in the ongoing digital music distribution debate.
FMC General Counsel Walter F. McDonough said, “We propose the establishment of a system that will include independent arbitration for dispute resolution, democratic voting procedures for all members, open and transparent accounting and payment systems, inclusive board membership, and a technologically advanced tracking system that will provide the most accurate database for royalty payment.”
In order to realize these policy initiatives, FMC will continue its research and discussions with the leading figures from the music, technology, law and business communities.
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