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Mr. KASTENMEIER. Now, Mr. Gramuglia, or Mr. Wally.
Mr. WALLY. Gentlemen, my name is Alan Wally. I am a small, independent retailer of prerecorded music, in the State of New Jersey, and president of a trade association representing small, independent, retail establishments that specialize in prerecorded music.
I am here today on behalf of my fellow retailers to testify against the proposed antipiracy provisions, in the field of prerecorded music, as they currently exist in the 1974 interim antipiracy bill, because the current antipiracy bill does not do what it is intended to do. It does the complete opposite.
As we understand it, the intent of the antipiracy bill was to protect the artist, the retailer, and the consumer. The current antipiracy bill only serves to hurt the aforementioned and, therefore, some modification, specifically mandatory licensing, is absolutely necessary, as this paper will demonstrate. It is our belief that two of the prime reasons the major labels are in favor of the antipiracy provisions are: To prevent and preclude the possibility of future competition by any legitimate duplicator who might be able to gain a national distribution and, therefore, promote and distribute new artists; and, to allow the major labels to further penetrate the retail market, to the detriment of the independent retailers, via expansion of, and additions to current record club and retail store ownerships by the major labels.
We demonstrate in this paper how the artist, the retailer and the consumer suffer as a direct result of the current interim antipiracy legislation. In addition, we demonstrate how everyone would benefit from mandatory licensing including the major labels.
I humbly urge you to read this paper in its entirety. I know it is not professionally written. However, if all of the points that we raise in this paper are investigated in an economic impact survey, this committee will come to the same conclusions that we have drawn. We are doing something very unusual today, compared to the record companies. We are telling the truth.
In light of the above, we respectfully request that you take the following courses of action.
(1) An immediate mandatory licensing bill, with mandatory licensing after 15 months separate and apart from the general copyright revision bill, to be attached to last year's interim antipiracy bill.
(2) An immediate form of relief, via the above, to override current Federal district court interpretations of the 1909 copyright law. Current Federal court interpretations have ruled that duplication under the 1909 copyright law to be illegal thereby costing the livelihood of over 15,000 people, and their families. A new bill specifically allowing mandatory licensing will revive this industry and will help improve our Nation's overall economic situation.
(3) An economic impact survey into the recording industry and the respective way five major labels, which control 85 percent of the field of recorded music, might be a form of structural antitrust, and guilty of conspiracy, collusion, and possible price fixing as I can demonstrate.
Further, we ask that the potential for a restraint of independent retail trade, by the major labels, via their ownership of record clubs and retail establishments, be given special attention by the Justice