The Perform Act: Anti-Satellite Radio Bill Attacks New XM2go Devices

Tuesday, May 2, 2006 at 5:32 AM
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Helix and InnoThat didn't take long. Already the big music labels are going after the next-generation XM2go devices. This time, the debate took place in front of the US Senate over the latest onslaught of anti-satellite radio legislature: The Perform Act.

The bipartisan bill known in long-form as "Parity, Platforms and Protection: The Future of the Music Industry in the Digital Radio Revolution" (mouthful? The Perform Act for short) seeks to change the compensation structure in the music industry to match that of digital music services. Also known as: performance versus distribution. Read on, I explain it.

In one corner is "performance" which is completely passive listening - like that of listening to the radio. In the other corner is "distribution" which involves actively taking possession of the music - like downloading off of iTunes. Then innovation comes marching in and blurs the line between the two with devices like the Pionner Inno and Samsung Helix (and the S50), but of course, leave it to major music labels to want to charge a tax on innovation.

See, the Satellite Radio industry currently is governed by compulsory licenses, which is a bit closer to the performance side of things. Of course, XM and SIRIUS still pay tens of millions of dollars in performance royalties to labels, writers, and performers - while terrestrial radio pays absolutely nothing. So it's not like the RIAA is being taken to the cleaners. In fact, XM Satellite Raio pays more in royalties than any other single company under the terms of a deal established in 1998.

But that's not enough.

"XM has paid market rates for everything from Oprah Winfrey to baseball, but not the music on which it built its business," said Edgar Bronfman Jr., chief executive of Warner Music Group. "It is not fair for satellite radio to turn performances into distributions without paying distribution licenses."

The claim is that at the point where these devices can record satellite radio, and allow you to store it, the music is now being distributed and performance rules no longer apply.

Of course, the first thing we all think of are the days with cassette tapes.

"Our subscribers, just like radio listeners have done for 50 years, have the right to make a single copy of a song for themselves," said Gary Parsons of XM Satellite Radio. "They don’t have the right to distribute that copy on the Internet for others."

"We designed these devices to fully comply with copyright law. Recording from the radio is not a download service.," Parsons continued. "Everything recorded from the radio is locked to the device. It cannot be transferred to the Internet ensuring that it is only for personal use. And you can only hear the material as long as you remain an XM subscriber."

Funny. The NAB wants satellite radio to be treated as a performance service under the same FCC rules and regulations that they have to abide by. Yet the RIAA wants satellite radio to be treated like a music distribution service, coughing up higher fees for usage. Both want congress to enforce this.

And while The Perform Act works to clarify what exactly the difference between performance and distribution are, perhaps we can all get involved and help give our own point of view. First, contact The Perform Act's sponsors: Senators Dianne Feinstein (D-California), Lindsey Graham (R-South Carolina), and majority leader Bill Frist (R-Tennessee). As satellite radio listeners ourselves, no one knows our listening habits are as much as we do. Maybe we all need to be less passive right now, and more active, when it comes to contacting your congressman and let them know how you feel.

[Red Herring

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The Perform Act must be passed. The problem of Internet piracy has become very huge. Currently well over a billion songs are illegally stolen every month. The Perform Act is needed to save the arts in this country. So many creative artists are being deprived of the compensation they deserve for their work. The Perofrm Act will accomplish this and make sure that artists will be paid for their work. Art in this country largely involves the music and video products that are produced. This is what is currently being stolen from Internet web sites containing intellectual property, copyrighted material. There is a company located in Santa Cruz, California called Media Rights Technologies (MRT) which has technology that represents the solution for what is called for in the Perform Act. MRT's Secure X1 technolgy can totally prevent the illegal copying of streaming audio files. It also addresses all other forms of Internet piracy. This technolgy works for audio, video and all other forms of software which can all be securely protected with the use of Secure X1.

The Perform Act must be passed. The problem of Internet piracy has become very huge. Currently well over a billion songs are illegally stolen every month. The Perform Act is needed to save the arts in this country. So many creative artists are being deprived of the compensation they deserve for their work. The Perofrm Act will accomplish this and make sure that artists will be paid for their work. Art in this country largely involves the music and video products that are produced. This is what is currently being stolen from Internet web sites containing intellectual property, copyrighted material. There is a company located in Santa Cruz, California called Media Rights Technologies (MRT) which has technology that represents the solution for what is called for in the Perform Act. MRT's Secure X1 technolgy can totally prevent the illegal copying of streaming audio files. It also addresses all other forms of Internet piracy. This technolgy works for audio, video and all other forms of software which can all be securely protected with the use of Secure X1.

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