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CONTENTS OF TECHNICAL APPENDIX (organized by exhibit supported)
A. No Economic Justification for an increase.
Mechanical Royalties Out pace Inflation and Median Family Income,
and Median Family Incone, 1963-1972
Rates Paid are Statutory Rate and Standard Variations
J. In 1974 as in 1963 Tunes were licensed at 24 or Standard
FULL STATEMENT EXHIBITS
STATUTORY LICENSE ROYALTIES AND RECORD COMPANY PRICE: 1909 VS.
2 3. INC ME TO COPYRIGHT OWNERS FROM RECORDINSS, 1973 vs. 1963
1763 . 2
*** _ ; that An N THE UNITED STATES, T971-1994
MRY LICEYSE RATE
11 DGA? OF A CCPY! ) FTE INCREASE ON JUKE BOX OWNERS
ONIZATION IN THE PHONOCRAPH RECORD INDUSTRY 1947-1970 16 0 7:17: ROYALTY RATES PAID ON COPYR:CHTS
# R o k CROS RELEASES BY TWO
SUNS IARY EXHIBITS
For data supporting material in the "Summary Statement", see the appropri. ate sections in the full statement (pp. 33-118) and in this Technical Appendix.
Exhibit A.. No Economic Justification for an increase
This exhibit summarizes the conclusions of the full statement. The basis for the finding that copyright owners' income has outpaced inflation is provided in Section 1.B. of the full statement, pp. 37 to 43. The impacts of an increased statutory rate are spelled out in Section II.A. to II.D. of the full statement, pp. 56 to 81.
Exhibit B .. Price Per Tune is Down; Copyright Owners' Share is up
This conclusion is based on Exhibit I, p. 36. it should be noted that the price per tune received by record companies has declined in current dollars since 1909, even though today's product is far superior in quality.
Exhibit C - Mechanical Royalties Have More Than Doubled
The data in this exhibit are based upon Exhibit 3 in the main report, p. 59. The source of the figures is CRI's financial survey of recording companies, which is explained in detail later in this appendix under "Exhibit
These data are also based on Exhibit s in the main report, p. 39. Data pertaining to the Consumer Price Index and Median Family Income are from the Statistical Attract of the lited States,
Exhibit E -- Mechanica! Rovalties Paid Per Released Twe
These data are based upon the analysis in Exhibit 4 of the sain report,
p. 43. The assumptions bety and the exhibit are discussed later in this technic** apperdix under "Exitit 2".
Tel.-4.4 11 e aired on pages 56-60; the underlying data are to be found u .1.'16 ", which are discussed in this appendix Suffice it to say here But the $€* aiiion figure does not assume that all licenses would be paid at
It is based on the study finding that the existing rate structure, with $tendard disputs off the statutory rate, would prevail .. but at a higher 3.8*** for i! rates This study finding is explained in Section 11. E. of the t... 1'' t
Note that the increase in sechanical royalties paid would be more than the 1 .1.bered by raising the rat. from 2 to 5¢ because of the effect of the opposed playing time provision in Sec. 115 of H.R. 2223. (See Exhibit 6.)
Ciculation of the increase -- more precisely $97 6 million -- is shown Ha e.dit 19, page " Note that the increase to Consumers is consiserably
"flas $4' miilium increase to recording companies. The logic for this 3* *7 4.*•$ ls 1919 emaisa! Aspendix under Exhibi: 9.
?r*.**Breate er .fm? !!** anter Nese data cane directiy frue Exhibit is of the sain written report, p. 74 ***** of that eu. 11, y conducted by Cambridge Research Institute
:), l. 410.Jsod iater in this appendix urder "Exhibit 130.
TIL . Po ! are ran
arla'! 99 *** per ***25*are computed directly from Einibit aI. p 118, which is Barin.twil later in this technical Appenix.
licenses, were paid at rates other than standard variations. This amounts to 0.81 of the tunes sampled.
The left-hand side of Exhibit J is taken from the 1965 Statement of John Desmond Glover on H.R. 4347 Section 113 (c) (2).
Exhibit K - No Economic Justification for an increase
This exhibit restates the conclusions of Exhibit A.
This concludes the section of the Technical Appendix covering the Summary exhibits.
is conectates the section of the technical asendis coverine the comm