Lapas attēli
PDF
ePub

I just do not think Mr. Zimmerman has looked at the economics of this industry and its possibilities. I looked all over in his statement for mention of the communications satellite which everybody knows is right around the corner. The Ford Foundation wants to jump in. Comsat is up there already. I.T. & T. wants to come in. RCA wants it. All are scrambling for this thing. And one day we will all wake up like the day we woke up and found that Russia had the atomic bomb. One day we will wake up and find there it is, that nobody ever anticipated this thing happening to television, that suddenly television is not what it was when this bill came before this committee. It is sure to happen. It is not just an idle dream.

Now, the next point that Mr. Zimmerman makes is that, "Finally the CATV liability here proposed would in fact be a departure from the system by which copyright holders are now compensated. Generally speaking, the television viewer in effect now pays for the television programing indirectly, by buying the products of the sponsors." Well, I have already mentioned that actually the nonviewer pays as well as the viewer but if you charge CATV only the viewer will pay. That seems much fairer. Besides, it will improve the programs that people at home get and if there is more money available for authorship, I think that will be a service to the public and not a disservice. Finally, Mr. Zimmerman says: "In conclusion we believe that this copyright proposal may have harmful anticompetitive consequences." Now, I do not know how payment to the writers and publishers in ASCAP can have anticompetitive consequences and when Mr. Zimmerman was asked what about it, he did not know of any need for an exemption of CATV in a case where copyright rates are regulated by an antitrust consent decree, as in the case of ASCAP.

When I was here before, Mr. Chairman, you asked whether I believed in the white, black, and gray areas and I said I thought they all should pay and you said, "You think it is all black," and I think we agreed that was my position.

I certainly appreciate the opportunity to come here and comment on Mr. Zimmerman's remarks. I am sorry I could not have done better but I have just heard the remarks and got the copy and this is the best I could do under the circumstances.

Senator BURDICK. In other words, it is still black?

Mr. FINKELSTEIN. I think so, Mr. Chairman.

Senator BURDICK. Thank you.

Mr. FINKELSTEIN. Thank you very much.

(The following was subsequently received and by order of the chairman printed at this place in the record:)

AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND PUBLISHERS,
New York, N.Y., September 6, 1966.

Re S. 1006, supplement to statement of August 25, 1966.
Hon. QUENTIN N. BURDICK,
Acting Chairman, Committee on Patents, Trademarks, and Copyrights, U.S.
Senate, Washington, D.C.

DEAR MR. CHAIRMAN: When I appeared before the Committee in rebuttal on August 25, I emphasized the financial power of the CATV operators for whom the Department of Justice was seeking an exemption from the requirements of the Federal Copyright Laws. Attached is a survey showing that only 25 group owners of CATV systems own in the aggregate over 650 CATV franchises and have applications pending for almost 400 more.

I also mentioned that J. Leonard Reinsch, President of the Cox Broadcasting Corporation, and Retiring Director of the National Community Antenna Association had referred to copyright fees as "a normal cost of doing business." His entire statement on this subject reads as follows (National Community Television Association Bulletin, July 18, 1966):

"THE COPYRIGHT QUESTION

"A recent court ruling, currently subject to appeal, implies that CATV operators may be required to pay fees for the privilege of transmitting copyrighted material to cable television subscribers. It has been suggested that this would impose a critical financial burden on the operators. In our opinion, the alarm is not warranted. Copyright fees are a normal cost of doing business in many fields. As in radio and television today, they would constitute a relatively small element in the total cost of providing a service desired by the public."

In addition, I should like to call the Committee's attention to a similar statement in a current prospectus of the Teleprompter Company, indicating that they can pay such royalties without any materially adverse effect on the company, even though Teleprompter's "principal activity is the ownership and operation of community antenna television (CATV) systems in sixteen communities throughout the United States." Referring to the case of United Artists Television, Inc. v. Fortnightly Corp. (and a similar case pending against Teleprompter) the prospectus states:

"Even if plaintiffs ultimately prevail in either or both actions, management of the Corporation believes that the effect on the Corporation will not be materially adverse."

In any event, as the Department of Justice concedes, where rates of copyright owners are already regulated under the antitrust laws, as in the case of ASCAP, there is no need of granting a copyright exemption to CATV.

It is submitted that if any concession is to be made to CATV, it should be done under the Commerce clause of the Constitution, and not the Copyright clause. The Commerce clause enables the FCC, if deemed necessary, to require stations holding a television license, to obtain rights for CATV operators for their contour "A" area; it also enables the Department of Justice to insist on rate regulation in cases of collective licensing. These avenues are open if resort to them is needed.

No case has been made for an exemption of CATV-a commercial operation— under the copyright law. The rights of authors should not be made subservient to the claims of private commercial interests. This was done in 1909 with respect to coin-operated machines. The precedent should never have been established. It is unsound and is not likely to be continued. It certainly should not be extended.

I appreciate the permission extended by the Committee to appear in rebuttal, and this further opportunity to supplement my extemporaneous remarks.

Respectfully submitted.

[blocks in formation]

HERMAN FINKELSTEIN.

25 group owners of CATV systems-Number of franchises, franchise applications pending, and ownership of TV and radio stations

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]

25 group owners of CATV systems-Number of franchises, franchise applications pending, and ownership of TV and radio stations-Continued

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][ocr errors][subsumed][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]

In addition to owning 16 radio and TV stations, General Tire & Rubber Co. owns the Yankee radio network.

Senator BURDICK. Does anybody from the CATV interests care to testify in surrebuttal? If not, that will be all.

At this time we will, without objection, include at the appropriate place in the record the testimony of Mr. Charlton Heston who gave it informally, together with his prepared statement. The record will be open for additional statements for a period of 10 days as I announced before. I might state to the contending parties that the parties are in closer agreement today than they were when the matter was before the House and I would hope that they would still explore the possibilities of getting closer yet in the future. We will determine that when and if the hearings are resumed.

So in the meantime I hope that some efforts could be made among the parties because this is a difficult question-that is one thing we can agree on-and perhaps resolve some of these problems.

With that this committee will be in recess, subject to the call of the Chair.

(Whereupon, at 11:30 a.m., the hearing was recessed.)

« iepriekšējāTurpināt »