Lange's concern for "economic interests developed in reliance on a well-established concept" has little relevance to record-rental shops, which are still in an early stage of development. Indeed, this concern underscores the need for prompt enactment of this legislation

-

before rental shops become more widespread

and more deeply entrenched.

The fourth criterion identified by Professor

35

Lange is that "the new legislation ultimately will enhance the public domain" by creating new works that will enter the public domain at the end of the copyright term. The Record Rental Amendment would do just that. Record rentals create a disincentive to the creation and production of new music and records, because the creators are deprived of compensation every time a rental-andtaping episode occurs. In the long run, the cumulative effect of widespread record rentals will be to diminish the quantity and diversity of new music available to the public. As Professor Lange himself recognized, "insufficient copyright protection can mean reduced incentives to the production of expression and thus ultimately reduced contributions to the public domain. "36

37

By plugging the loophole created by the first-sale doctrine, the rental bill would restore fair compensation

to copyright owners and ultimately would "enrich the

public domain."37

Professor Lange's fifth requirement is that the amendment must be compatible with "the principle provisions of the copyright law" and must not "require substantial rewriting of the existing Act. "38 The Record Rental Amendment is a discrete and limited modification of the first-sale doctrine, and it would not necessitate substantive changes in any other provision of the Copyright Act. Moreover, it is fully consistent with the protection long afforded copyright owners against unauthorized reproduction of their work: it would restore that protection against the new trend of cheap

infringement through the vehicle of record rentals.

Thus, even if it is evaluated pursuant to the

demanding framework advocated by Professor Lange, the Record Rental Amendment passes muster.

- 38

CONCLUSION

Now is the time to stop the record rental problem: before rental shops (aided by the compact disc) become widespread and entrenched, and before the music community bears the full brunt of their displacement of sales. Rental shops threaten to decimate the music industry, to raise record prices substantially, and to curtail dramatically the availability of new and diverse music to the American public.

The record rental problem can be solved only by legislative action. The Record Rental Amendment would be an effective, precise solution to the problem. It would restore the integrity of the Copyright Act by closing the loophole created by the first sale Prompt enactment of this legislation is essential to preserve this country's great musical heritage.

doctrine.

COALITION TO SAVE AMERICA'S MUSIC

The Coalition to SAVE AMERICA'S MUSIC represents over 2 million individual members and hundreds of companies.

The objective of the music industry and our SAVE AMERICA'S MUSIC Coalition is to support the passage of The Home Recording Act of 1983 (S.31 in the Senate and H.R.1030 in the House) and The Record Rental Amendment of 1983 (S. 32 in the Senate and H.R.1027 in the House)- and we urge Congress to enact them promptly.

American Federation of Musicians (AFM), 1500 Broadway, New York, NY 10036, (212) 869-1330 Membership 300,000, affiliated with the AFL-CIO. Protects the employment rights of professional musicians in all fields in the U.S. and Canada, including collective bargaining agreements.

Victor W. Fuentealba- President

American Federation of Television & Radio Artists (AFTRA), 1350 Avenue of the Americas, New York, NY 10019, (212)265-7700 - Membership 55,000. Negotiates and administers collective bargaining agreements for professional performers and broadcasters for live and taped broadcast performances, phonograph recordings, and audio-visual productions.

Sanford I. Wolff- Nat'l Executive Secretary

American Guild of Authors & Composers (AGAC), 40 W. 57th Street, New York, NY 10019, (212)757-8833- Membership, 4,000. Protects its American songwriter membership through the AGAC Contract in dealings with music publishers.

American Music Center (AMC), 250 West 54th Street, Suite 300, New York, NY 10019, (212)247-3121 - Membership, 1,300. Promotes the creation, performance, publication and recording of American classical music. Maintains an official U.S. music documentation and information center.

Margaret Jory-Exec. Director

American Society of Composers, Authors & Publishers (ASCAP), Ascap Bldg., 1 Lincoln Plaza, New York, NY 10023, (212) 595-3050 Membership, 30,000. Founded in 1914 to license and collect fees for the rights to public performances of its members' copyrighted musical works, and to distribute such income.

Hal David-President

Bernard Korman-Chief Counsel

Gloria Messenger-Exec.Director

American Society of University Composers (ASUC), 250 West 54th Street, Room 300, New York, NY 10019, (212)691-1135 - Membership, 850 including composers, performers and institutions. National service organization for composers to promote and disseminate the music of its members through their score publications, sound recordings, radio broadcasts and the presentation of public concerts.

Paul Marcontell- Chairman

Association of Independent Music Publishers (AIMP), 6430 Sunset Blvd., Suite 1500, Los Angeles, CA 90028, (213)463-1151 - Membership, 151 publishing companies. Furthers the interests and education of the independent music publisher in all fields of the publishing industry.

Martin Cohen, Esq.-President

Black Music Association (BMA), 1500 Locust Street, Suite 1905, Philadelphia, PA 19102, (215)545-8600 - Membership, 2,000. Includes performers, producers, promoters, and record company executives whose objectives are to promote, perpetuate and preserve black music.

Broadcast Music Inc. (BMI), 320 W. 57th Street, New York, NY 10019, (212)586-2000 Affiliates, 68,000. Founded in 1940 to represent writers and publishers, licensing, collecting and distributing fees for their publicly performed musical repertory.

Edward Cramer-President

Church Music Publishers Association (CMPA), Box 4329, Washington, D.C., 20012, (513)228-6118 - Membership, 29 music publishing companies who strive to preserve and promote gospel music.

Steve Lorenz-President until March 4th,1983

Fred Bock-President after March 4, '83 (213)996-6181

Country Music Association (CMA), P.O. Box 22299, Nashville, TN 37202, (615) 244-2840 Membership, 6,600 including international representation. Professional trade association dedicated to promoting and developing country music worldwide. Major activities include annual network television Award Show, international country music Fan Fair, seminars, research and publications.

Jo Meador-Walker-Executive Director

Gospel Music Association (GMA), P.0. Box 23201, Nashville, TN 37202, (615) 242-0303 Membership, 2,000, with international representation. Service organization whose purpose is to represent, promote and spread the word about gospel music, including presentation of the annual DOVE Awards.

Muscle Shoals Music Assn. (MSMA), P.O. Box 2009, Muscle Shoals, ALA. 25660, (205) 381-1442 Membership, 800, including engineers, musicians, songwriters, artists, producers, publishers, record companies and studios. Goal is to publicize Muscle Shoals music throughout the world through activity including monthly workshops, songwriter showcases and an annual seminar.

David Johnson-President

Bill Jarnigan-Exec. Director

-2