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HEARING

BEFORE THE

SUBCOMMITTEE ON INTELLECTUAL PROPERTY

AND JUDICIAL ADMINISTRATION

OF THE

COMMITTEE ON THE JUDICIARY
HOUSE OF REPRESENTATIVES

ONE HUNDRED SECOND CONGRESS

SECOND SESSION

ON

H.R. 3204

AUDIO HOME RECORDING ACT OF 1991

FEBRUARY 19, 1992

Serial No. 114

Printed for the use of the Committee on the Judiciary

U.S. GOVERNMENT PRINTING OFFICE

66 469 CC

WASHINGTON : 1993

For sale by the U.S. Government Printing Office
Superintendent of Documents, Congressional Sales Office, Washington, DC 20402

ISBN 0-16-040902-0

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COMMITTEE ON THE JUDICIARY

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JACK BROOKS, Texas, Chairman DON EDWARDS, California

HAMILTON FISH, JR., New York JOHN CONYERS, JR., Michigan

CARLOS J. MOORHEAD, California ROMANO L. MAZZOLI, Kentucky

HENRY J. HYDE, Illinois WILLIAM J. HUGHES, New Jersey

F. JAMES SENSENBRENNER, JR., MIKE SYNAR, Oklahoma

Wisconsin PATRICIA SCHROEDER, Colorado

BILL MCCOLLUM, Florida DAN GLICKMAN, Kansas

GEORGE W. GEKAS, Pennsylvania BARNEY FRANK, Massachusetts

HOWARD COBLE, North Carolina CHARLES E. SCHUMER, New York

LAMAR S. SMITH, Texas EDWARD F. FEIGHAN, Ohio

CRAIG T. JAMES, Florida HOWARD L. BERMAN, California

TOM CAMPBELL, California RICK BOUCHER, Virginia

STEVEN SCHIFF, New Mexico
HARLEY O. STAGGERS, JR., West Virginia JIM RAMSTAD, Minnesota
JOHN BRYANT, Texas

GEORGE ALLEN, Virginia
MEL LEVINE, California
GEORGE E. SANGMEISTER, Mlinois
CRAIG A. WASHINGTON, Texas
PETER HOAGLAND, Nebraska
MICHAEL J. KOPETSKI, Oregon
JACK REED, Rhode Island

JONATHAN R. YAROWSKY, General Counsel
ROBERT H. BRINK, Deputy General Counsel
ALAN F. COFFEY, JR., Minority Chief Counsel

SUBCOMMITTEE ON INTELLECTUAL PROPERTY AND JUDICIAL ADMINISTRATION

WILLIAM J. HUGHES, New Jersey, Chairman JOHN CONYERS, JR., Michigan

CARLOS J. MOORHEAD, California MIKE SYNAR, Oklahoma

HOWARD COBLE, North Carolina PATRICIA SCHROEDER, Colorado

HAMILTON FISH, JR., New York DAN GLICKMAN, Kansas

F. JAMES SENSENBRENNER, JR., BARNEY FRANK, Massachusetts

Wisconsin CHARLES E. SCHUMER, New York

CRAIG T. JAMES, Florida
RICK BOUCHER, Virginia

TOM CAMPBELL, California
MEL LEVINE, California
GEORGE E. SANGMEISTER, Illinois

HAYDEN W. GREGORY, Counsel
EDWARD O'CONNELL, Assistant Counsel
ELIZABETH FINE, Assistant Counsel

LINDA C. HALL, Editor
PHYLLIS HENDERSON, Staff Assistant
VERONICA L. ELIGAN, Staff Assistant
THOMAS E. MOONEY, Minority Counsel
JOSEPH V. WOLFE, Minority Counsel

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OPENING STATEMENT
Hughes, Hon. William J., a Representative in Congress from the State of

New Jersey, and chairman, Subcommittee on Intellectual Property and
Judicial Administration

WITNESSES
Green, Wayne, Ph.D., publisher, CD Review Magazine, and secretary,

Independent Music Producers Society, Hancock, NH
Lebow, Irwin L., Ph.D., author, private consultant, and former Chief

Scientist-Associate Director for Technology, Defense Communications
Agency
Litman, Jessica, professor of law, Wayne State University
Manilow, Barry, recorder and songwriter, Hollywood, CA
Nimiroski, Stanson G., vice president and manager, Sony Music Pitman

Manufacturing Plant, Pitman, NJ
Oman, Ralph, Register of Copyrights, Library of Congress, accompanied by

Dorothy Schrader, General Counsel, and Charlotte Givens Douglas,
Principal Legal Adviser to the General Counsel
Roach, John V., chairman of

the board, chief executive officer, and president,
Tandy Corp., Fort Worth, TX
Smith, Joseph, president and chief executive officer, Capitol-EMI Music, Inc.,

Hollywood, CA
Weiss, George David, president, Songwriters Guild of America, New York,

NY, on behalf of the Copyright Coalition, accompanied by Cary Sherman,
Esq., Arnold & Porter, on behalf of the witnesses

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING
Conyers, Hon. John, Jr., a Representative in Congress from the State of

Michigan: Prepared statement
Green, Wayne, Ph.D., publisher, CD Review Magazine, and secretary,

Independent Music Producers Society, Hancock, NH: Prepared statement
Lebow, Irwin L., Ph.D., author, private consultant, and former Chief

Scientist-Associate Director for Technology, Defense Communications
Agency: Prepared statement
Litman, Jessica, professor of law, Wayne State University: Prepared

statement
Manilow, Barry, recorder and songwriter, Hollywood, CA: Prepared

statement
Nimiroski, Stanson G., vice president and manager, Sony Music Pitman

Manufacturing Plant, Pitman, NJ: Prepared statement
Oman, Ralph, °Register of Copyrights, Library of Congress: Prepared

statement
Roach, John V., chairman of the board, chief executive officer, and president,

Tandy Corp., Fort Worth, TX: Prepared statement

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Page

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Smith, Joseph, president and chief executive officer, Capitol-EMI Music, Inc.,

Hollywood, CA: Prepared statement
Weiss, George David, president, Songwriters Guild of America, New York,
NY, on behalf of the Copyright Coalition: Prepared statement

APPENDIXES
Appendix 1.-Letter from Michael R. Klipper, vice president, Legal and

Governmental Affairs, Association of American Publishers, Inc., to Hon.
William J. Hughes, chairman, Subcommittee on Intellectual Property and

Judicial Administration, February 18, 1992
Appendix 2.-Statements and material submitted by Frank Beacham, New

York, NY
Appendix 3. Jessica Litman, "Copyright Legislation and Technological

Change," Oregon Law Review, vol. 68, No. 2, (1989) at 275
Appendix 4.- Technical reference document for the Audio Home Recording

Act of 1991
Appendix 5.-Owen C.B. Hughes, "Digital Audio Recording: A Look at

Proposed Legislation," New York Law Journal, October 1, 1991
Appendix 6.—Digital Audio Tape Decks," Consumer Reports, October 1990,

at 660-661

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AUDIO HOME RECORDING ACT OF 1991

WEDNESDAY, FEBRUARY 19, 1992

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON INTELLECTUAL PROPERTY

AND JUDICIAL ADMINISTRATION,
COMMITTEE ON THE JUDICIARY,

Washington, DC. The subcommittee met, pursuant to notice, at 9:37 a.m., in room 2237, Rayburn House Office Building, Hon. William J. Hughes (chairman of the subcommittee) presiding.

Present: Representatives William J. Hughes, John Conyers, Jr., Patricia Schroeder, Carlos J. Moorhead, and Howard Coble.

Also present: Hayden W. Gregory, counsel; Elizabeth Fine, assistant counsel; Phyllis Henderson, staff assistant; and Thomas E. Mooney, minority counsel.

OPENING STATEMENT OF CHAIRMAN HUGHES Mr. HUGHES. The Chair has received a request to cover this hearing in whole or in part by television broadcast, radio broadcast, and still photography, or by any of such methods of coverage.

In accordance with committee rule 5(a), permission will be granted unless there is an objection. Is there objection?

(No response.)
Mr. HUGHES. Hearing none, permission is granted.

Good morning. Today, the subcommittee is pleased to consider H.R. 3204, the Audio Home Recording Act. I joined Chairman Brooks in introducing H.R. 3204 last August. Since then our ranking Republican member, Carlos Moorhead of California, and 8 other members of this subcommittee have joined the ranks of what are now 57 cosponsors of the bill. The Senate is considering similar legislation under the leadership of Senator DeConcini in the other body.

The Audio Home Recording Act represents a dramatic compromise reached between the recording and music industries, the consumer electronics industry and consumers themselves. The agreement will encourage the development and introduction of advanced consumer products and will at the same time assure that the copyrights on creative works are properly protected.

This legislation attempts to solve the problem of home taping of recorded music, a problem that is already of concern to the recording industry. The American recording industry estimates that it loses close to a billion dollars in revenues each year to home recording. The dispute over home taping of recorded music, however, took on a new dimension 5 or 6 years ago with the introduction of

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