MUSIC LICENSING AND SMALL BUSINESS HEARING BEFORE THE COMMITTEE ON SMALL BUSINESS ONE HUNDRED FOURTH CONGRESS SECOND SESSION WASHINGTON, DC, MAY 8, 1996 Printed for the use of the Committee on Small Business Serial No. 104-76 U.S. GOVERNMENT PRINTING OFFICE 24-690 CC WASHINGTON: 1997 For sale by the U.S. Government Printing Office Superintendent of Documents, Congressional Sales Office, Washington, DC 20402 ISBN 0-16-054123-9 DEPOSITORY MAR 1 0 1997 Stanford Un Jonssor JOEL HEFLEY, Colorado COMMITTEE ON SMALL BUSINESS JAN MEYERS, Kansas, Chair WILLIAM H. ZELIFF, JR., New Hampshire PETER G. TORKILDSEN, Massachusetts FRANK A. LOBIONDO, New Jersey ZACH WAMP, Tennessee DICK CHRYSLER, Michigan WALTER B. JONES, JR., North Carolina JOHN J. LAFALCE, New York EVA M. CLAYTON, North Carolina EARL F. HILLIARD, Alabama DOUGLAS "PETE” PETERSON, Florida BENNIE G. THOMPSON, Mississippi KEN BENTSEN, Texas WILLIAM P. LUTHER, Minnesota JOHN ELIAS BALDACCI, Maine JENIFER LOON, Staff Director JEANNE M. ROSLANOWICK, Minority Staff Director (II) Alger, Pat, American Society of Composers, Authors and Publishers (ASCAP) Barba, Stephen P., The Balsams Grand Resort Hotel Berenson, Marvin L., Esq., Senior Vice President and General Counsel BMI Epperson, Stuart, Vice-Chairman, National Religious Broadcasters MUSIC LICENSING AND SMALL BUSINESS WEDNESDAY, MAY 8, 1996 HOUSE OF REPRESENTATIVES, Washington, DC. The Committee met, pursuant to notice at 10 a.m., in room 2359, Rayburn House Office Building, the Honorable Jan Meyers (Chair of the Committee) presiding. Chair MEYERS. Good morning. The Committee will come to order. Today's hearing is our second in a series of hearings looking at intellectual property issues of importance to small business. The issues surrounding music licensing practices of the Performing Rights Societies, ASCAP, BMI, and SESAC, has long been a major concern for small businesses in the entertainment and retailing industry. The background music that we all hear when we're out at our favorite restaurant or local bar or a retail store is something that many people don't really think that much about. Today's hearing will change all that. Because how music is licensed and who pays for it, and how many times it is paid for, is going to surprise many of us. As many of you know, music licensing under the copyright laws and the antitrust consent decrees in effect with respect to ASCAP and BMI are issues that are within the legislative jurisdiction of the Committee on the Judiciary. However, the Committee on Small Business has a tradition of holding oversight hearings on issues of importance to small business. In fact, in 1957, during the 85th Congress, a Subcommittee of the Permanent Select Committee on Small Business of the U.S. House of Representatives held 5 days of investigative hearings on the practices of ASCAP. The record of those hearings covered over 700 printed pages; and as a result of those hearings, members of the Committee held an executive session with Representatives of the Department of Justice who took the matters presented at the Subcommittee hearings under consideration in their continuing enforcement of the 1950 consent decree against ASCAP. Today this issue of music licensing remains critical to many small businesses. For example, 92 percent of NFIB members have demanded music licensing reform legislation and are firmly behind H.R. 789, the Fairness in Music Licensing Act. This legislation was introduced by my colleague and friend, Jim Sensenbrenner, and I am proud to be a cosponsor. |