On the supply side the industry is also much more highly organized for the licensing of music for recording and the collection of mechanical royalties. However, the motivating power on the supply side is somewhat attenuated by the invasion of those who use music. The motion picture industry control of some major music publishers has been cited and also the establishment of music publishing companies by the recording interests which are in turn closely allied to broadcasting interests.

It is not implied that there was no organization within the music industry prior to the formation of the groups which have been mentioned. However, there is no question that the present music industry is much more highly organized than it was 50 years ago. The present state of the industry indicates that there is a fairly even balance between the two sides in their ability to protect their interests. Currently there is no single producer of recorded music, as there appeared to be in 1909, in a position to monopolize the supply of published music as it emerges from the music publishing houses. On the contrary, there are a number of large and powerful recording companies competing with one another, plus some hundreds of smaller companies.

The record producers must have a continuous flow of new tunes to prosper. The music publishers must license a continuous flow of new tunes for recording to reap the benefit of their copyrights. The two are so interdependent both in relation to their antecedents (e.g., the music publishers' relationship with the songwriters or the relationship between record producers and the broadcasters) and in relation to each other, that powerful as they both are there seems to be little chance that either would be in a position to dominate the other if compulsory license for recorded music were abandoned.

Moreover, the probability of a high degree of centralized control by any one company does not appear to exist either in the ranks of the music publishers or in the ranks of the record producers.

Finally, any monopoly aspects that might develop on either side would be subject to the same limitations as the monopoly aspects of any other business, i.e., the Sherman and Clayton Antitrust Acts.

COMMENTS AND VIEWS SUBMITTED TO THE

COPYRIGHT OFFICE

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THE ECONOMIC ASPECTS OF THE COMPULSORY LICENSE IN THE COPYRIGHT LAW