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State and city
WUFT WJCT WSEC WTHS WMFE WFSU WEDU WUSF
WGTV WETV W CLP WJSP WABW WVAN WXGA WCES KHET KMEB KUID
WSIU WXXW WTTT WILL KDPS
KTWU WFPK WYES
5 University of Florida.
Community Television, Inc. 17 Board of Public Instruction, Dade
Do. 24 Florida Central East Coast ETV, Inc. 11 Florida State University.
3 Florida West Coast ETV, Inc. 16 University of S. Florida 8 Regents of the University System of
Georgia. 30 Board of Education, City of Atlanta. 18 Georgia State Board of Education. 28 14 9
Do. 11 University of Hawaii. 10
Do. 12 University of Idaho.
8 Southern Illinois University. 20 Chicago ETV Association. 11
University of Illinois. 11 Des Moines Independent Community
School District. 11
Washburn University. 15 Board of Trustees, Louisville Free Pub
lic Library. 8 Greater New Orleans ETV Foundation. 10 Colby-Bates-Bowdoin ETV Corp. 13 University of Maine. 10
Do. 2 WGBH Educational Foundation. 56 Detroit ETV Foundation. 10 Michigan State University Board of
Delta College. 10 Twin City Area ETV Corp. 8 Duluth-Superior Area ETV Corp. 2 Twin City Area ETV Corp. 17
Do. 19 School District of Kansas City.
9 St. Louis ETV Corp. 13 Nebraska ETV Commission.
3 Do. 12 University of Nebraska.
9 Nebraska ETV Commission. 26 Do. 11
University of New Hampshire.
WCBB WMED WMEM WMEB WGBH
KCSD KETC KTNE KLNE KUON KPNE KYNE WENH
State and city
WNED WNDT WNYC WXXI WMHT WCNY
WUNC WTVI WUNB KFME WO'B WGBU WCET WVIZ WOSU WGSF WMUB WGTE
KETA KOKH KOED
Do.. Tulsa Oregon:
Salt Lake City.
Hato Rey (San Juan)-
5 Regents of the University of New Mexico
and Board of Education of Albuquer.
que. 17 Western N.Y. ETV Association, Inc. 13 Educ. Broadcasting Corp. 31 City of N.Y., Municipal Broadcasting
System. 21 Rochester Area ETV Assn., Inc. 17 | Mohawk-Hudson Council on ETV, Inc. 43 ETV Council of Central New York. 4 | University of North Carolina. 42 Charlotte-Mecklenburg Board of Educs
tion. 2 University of North Carolina. 13 North Central ETV Association, Inc. 20 Ohio University. 70 Bowling Green State University. 48 Greater Cincinnati ETV Fdn. 25 ETV Assn. of Greater Cleveland. 34 Ohio State University. 28 Newark Public School District. 14 Miami University. 30 Greater Toledo ÈTV Fdn. 13 Oklahoma ETV Authority. 25 Independent School Dist. No. 89. 11
Oklahoma ETV Authority. 7 Oregon St. Bd. of Fligher Education. 10 Do. 39 Lehigh Valley ETV Corp. 33 South Central Educational Broadcasting
Council 35 WHYY, Inc. 13 Metropolitan Pittsburgh ETV. 16
Do. 3 Pennsylvania State University. 44 Northeastern Pa. ETV Association.
7 South Carolina ETV Commission. 29
Do. 35 2 University of South Dakota. 10 Memphis Community TV Foundation. 2 Metropolitan Board of Education.
9 Southwest Texas ETV Council. 13
Area ETV Foundation, Inc. 8 University of Houston. 5 Texas Technological College. 23 Richardson Independent School District. 12 Utah State University of Agriculture
and Applied Science. 9 Board of Education of Ogden City. 18 Weber County School District. 11 Brigham Young University,
7 University of Utah. 15 Hampton Roads ETV Association. 23 Central Virginia ETV Corp. 57 Do. 10 Washington State University,
9 University of Washington. 56 Clover Park School District. 62 | Tacoma School District. 47 Yakima County School District 7. 21 University of Wisconsin. 10 Board of Vocational and Adult Educa
tion. 36 Do. 6 Department of Education of Puerto Rico. 3 Do.
KLRN KERA KUIT KTXT KRET
WMVT WIPR WIPM
REPORT TO EDUCATIONAL TELEVISION STATIONS, A DIVISION OF THE NATIONAL
ASSOCIATION OF EDUCATIONAL BROADCASTERS—THE ECONOMIC IMPACT OF THE PROPOSED COPYRIGHT LAW UPON EDUCATIONAL TELEVISION BROADCASTERS
The proposed copyright law will have a far-reaching effect upon the organization and character of educational broadcasting. This effect will flow from the costs of copyright clearance and the effect which these costs will have upon the sources and content of educational programs.
COSTS COMPONENTS The costs of acquiring copyright clearance fall into two major categories which should be distinguished for analytical purposes. One cost is the compensation paid to the copyright owner for the use of his property. The other cost is that incurred in the securing of the copyright clearance, i.e., its administrative costs.
The cash payout for copyrighted items among educational broadcasters now varies from zero to thousands of dollars. Fee schedules are geared to the type and amount of exposure given to the item. A year's national exposure carries a different price tag than a single exposure in a small market. On the other hand, a copyright owner might not charge a station for "fair use”, a term which may be defined as the incidental appearance of an item as part of a larger work.
The administrative cost, on the other hand, includes the direct cost of research staff to identify and locate the copyright owner, the business and legal staff to negotiate the contract for the clearance, plus secretarial costs, and the cost of materials, telephone, space, and overhead. In addition, there is the indirect cost of program production time attributable to considering alternatives imposed by copyright clearance problems.
ADMINISTRATIVE COSTS NET is the organization whose programming operations most closely resemble those of the individual educational broadcaster. Like the average ETV stations, NET produces approximately five hours of programming a week which it offers without charge to ETV stations paying a $100 a year subscription fee. While the copyright fees it pays for recording rights are higher than for the individual station due to the larger size of the audience to which NET programs are exposed, the internal clearing operations should not differ substantially from those which an ETV station will be required to undertake. Where NET differs from the average ETV station is its heavy use of recording rights. Operating as a type of network it requires clearance of recording rights on all its productions. The individual broadcaster, on the other hand, clears only those programs that he will circulate. ETV program exchanges account for about 9% of ETV programs and represent the circulation of about one-third of the programs produced by the ETV stations (Table 1).
Table 1.-Sources of ETV programing, 1966
Total program schedule
Source of instructional broadcasting
Percent of total hours
6.7 30.0 3. 4 4.1
Source: "One Week of Educational Television," p. 69.
1 The ETS Service was started in March 1966. Its share of program time increased to 1.8 percent of programing or about 20 hours a week. in 1967. A truer measure of the exchange of programs among ETV stations should combine regional networks with the ETV and ETS exchanges. These represent a combined total of about 9 percent of total programing.
Currently, NET's legal staff is heavily engaged in negotiating copyright clearances. In this activity the chief counsel is assisted by two attorneys and one music specialist, plus additional research assistants from the production staff. These four full time persons are assisted by three secretaries. There is also office space, telephone and overhead expenses.
Judging from the size of the NET staff which handles as many hours of program production as the average ETV station it seems reasonable to assume that the direct administrative cost of copyright clearance for each educational broadcaster would fall for, at the very least, the equivalent of the services of one house counsel, a full time research assistant and a secretary.
On this assumption, Table 2 shows an estimate of $33,000 a year for the administrative costs of a copyright clearance department for each ETV station seeking to continue to produce some of its own programming. TABLE 2.-Copyright clearance estimated administrative costs per ETV station
1 $15,000 Research assistant
Total operating cost----
133,000 1 Outside legal advice of $1,000 should be added.
The impact of this cost upon the average ETV station is shown in Table 3. The average cost of operating an ETV station will increase by at least 13% and the average programming expenses of an ETV station will increase by more than one-third. These increased expenses result only from the clearing process, the cost of the copyright fees are additional. TABLE 3.--Estimated cost impact of a copyright clearance department [Per ETV Station)
Increase due to
administratire costs of copyright
cicarance Annual average per ETV station
(percent) Total Operating Costs : $256,000+
. 13 Total Program Costs: $100,000
1 Carnegie Commission Report, p. 241.
2 Based on an estimate of $33,000 a year for administering copyright clearance (see table 2). 3 Ibid., p. 244.
THE PROCESS OF COPYRIGHT CLEARANCE The task of obtaining permission to use copyrighted materials is facilitated by the degree of centralization of clearance facilities established by the owners of these rights. Clearance facilities range from the highly organized ASCAP and BMI operations to the diffuse and fractionated clearance system represented by the publishing industry.
Music Clearance: Performance rights for music are granted mainly by the two larger associations in the field, ASCAP and BMI, They generally issue a license to perform music and lyrics owned by their members. In the instance of educational television only dramatic performance rights are paid for and these are negotiated on an item by item basis. Non-dramatic use of musical and literary material is presently exempt from clearance.
When it comes to obtaining recording rights, which means the right of putting music and lyrics on tape or film for repeat broadcasts, perhaps 75% to 80% of the music publishers are represented by the Harry Fox organization. However, this does not exhaust the clearance process when reproduction for broadcasting involves an existing performance of a musical work, such as would typically be the case with a phonograph record.
To illustrate the extreme case, a broadcaster who wants to use only two minutes of a well-known recording must obtain the following clearances :
1. Radio Corporation of America ;
3. The pianist, Mr. Rubenstein;
6. The Musicians Union. Frequently, attempts at clearance are frustrated, as when one of the key performers happens to be out of the country and cannot be reached. Another type of problem arises when uncertainty exists whether a given piece of music is still covered by copyright or whether it has passed into the public domain. For a definitive answer, the counsel retained by the broadcasters generally uses the services of a specialized law firm in Washington, D.C.
Even when a station purchases a property, such as a film, or a taped program, it is not free of the responsibility of securing copyright clearance. The current practice is to obtain a warranty of copyright clearance for the material involved, a hedge which does not always stand the test of fact. Foreign sellers often issue only limited guarantees, thereby putting the burden of copyright clearance on the buyer. At any rate, enough well-founded insecurity exists to cause most TV stations to purchase broadcasters' liability insurance which covers them against any clearance errors made in good faith.
Literary Materials: In the area of literary properties and pictures, the clearing process is considerably more complex since it is completely decentralized. Here the user must search for the copyright owner of every item he wants to use in a program.
Thus, clearance of program materials other than music requires first, identifying the copyright owner, locating him, making the inquiry regarding his fee, waiting for his response and then deciding whether the fee is within the budgeting constraints of the producer. All the while valuable (and expensive) time is spent in negotiating a copyright release that, in the final analysis, may have to be rejected. Among commercial broadcasters there is a widespread policy of rejecting for use all materials not readily clearable. This would result in a serious impairment in the quality of educational programs and leave the copyright owners still without fees. Perhaps most important for the copyright owners is that they would lose the stimulation of consumer demand which ETV provides for their books, records and drama.
COPYRIGHT FEES Currently the ETV broadcasters are exempt from paying for the performing rights on non-dramatic music. Under the proposed law they will become liable for this fee.
Commercial television networks and commercial television broadcasters now operate under a blanket license from ASCAP and BMI which costs about 1% to 2% of gross revenue. Despite this license, one commercial network maintains a special department for music clearance which it reported to cost $200,000 a year in operating expenses. This same network reports paying music fees totaling three times the license fee.
If a 2% fee were applied to an ETV station's budget its cost impact would be that 2%. This would cost educational broadcasters as a group over half a million dollars a year for music performance rights alone or about 5% of the program budget of ETV stations (Carnegie Commission Report, pp. 241, 244). A more conservative estimate of the cost of performance rights might be 2% of program expenditures for ASCAP and BMI (about $2,000 per station).
Estimates of the potential cost of ETV stations of other changes in the copyright law can be made from the experience of NET. As noted earlier, the average ETV station and NET both produce an average of 5 hours of programming a week. The comparability between the two is limited, however, in the extent to which they record their programs for distribution.
Although about 9% of the educational programming shown on TV screens are exchanges, it is not known whether this represents fully 9% of the programs produced or merely multiple showings of a smaller proportion of the programs produced. Judging from the less than 5% of the programs reported as actually exchanged it may be assumed that a smaller proportion of ETV programs are now recorded for exchange purposes. This, it is believed, is attributable in part to the problems of copyright clearance of recording rights.
NET, however, records all of its programs. Since it produces about the same volume of programs per week as the average ETV station its expenditure for recording ("synchronization") rights can be employed as a basis for estimating