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September 29, 2006 

Subcommittee Markup Statement on Music Copyright Bill


Today we begin the process of bringing the music industry – a multi-billion dollar business – into the digital age.

While the legislation hits the right notes, I recognize some still have concerns about a few words in the lyrics. And we will continue to discuss those concerns with the interested parties.

This historic bill has been many years in the making. It would not have been possible without the steady input and counsel of the Ranking Member, Howard Berman, and I thank him for this joint effort.

Also, many individuals have participated in the process and have acted both in the interest of their industry and in good faith. This symphony of effort is rare in the music industry and for that reason is all the more appreciated.

And two counsels of the Subcommittee, Joe Keeley and Shanna Winters, have helped orchestrate today’s event.

The legislation before us reforms Section 115 of the Copyright Act, which addresses mechanical licensing.

It paves the way for legal music services to offer a full range of music to consumers. No longer will licensing issues limit services like iTunes, Real, Yahoo, and others from offering consumers what they want, when they want it.

The legislation also puts escrowed money into artist hands. Since 2001, advance money has been paid into escrow by the legal services to pay artists once a final rate was set. This legislation empowers the Copyright Royalty Board to set these final rates and then pay artists the money they have earned years ago.

If this isn’t a platinum award-winning piece of legislation, I don’t know what is.

The legislation also benefits consumers by enabling mechanical licensing of all music, not just certain artists or certain categories of music.

To help retailers, the legislation also covers in-store music purchases of hybrid products. Retailers and online companies should be competing with each other, not competing with piracy.

I can download almost anything on the Internet today and that list should include legal copies of all music. The legislation ensures that this will happen.

There is no question about the need, only about how to reform American music licensing laws. Music licensing reform is necessary to pay artists what they are due and to make legal copies of all music available to every consumer.

This legislation is a major step forward in achieving that goal.


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Congressman Smith is the Chairman of Courts, the Internet, and Intellectual Property Subcommittee of the House Judiciary Committee. Read more about Congressman Smith's positions on high technology.



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