August 17, 2001
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Two RAIN readers
(one a webcast listener, one in the industry) have sent us copies of letters they wrote to members of Congress regarding current laws which they feel are unfairly detrimental to webcasting. Both gentlemen make excellent points in their well-written addresses, and we appreciate them sharing their efforts with us. What follows is the text of each of these letters:

"Innovation and consumer choice have been grossly harmed..."


Honorable Congressman:


I am writing because I am very concerned about how a federal law, the Digital Millennium Copyright Act (DMCA) of 1998 is impacting an industry that I care deeply about -- Internet radio broadcasting.

The DMCA mandates that radio stations must pay extra fees to the RIAA (Recording Industry Artists of America) when broadcasting songs over the Internet. Quite wrongly, I believe, the DMCA legislation and its fees apply to radio stations who broadcast their content free of charge to consumers over the Internet.

I believe the original intention of the DMCA was to mandate fees for digital broadcasting services such as MusicPlus and DMX that charge monthly fees to users. However under the pressure of RIAA lobbying, the 1998 DMCA legislation applied these fees to any broadcaster who transmitted songs over the internet, regardless of whether users had to pay a fee for content or not.

It has now become obvious that the DMCA and its requirements for federal copyright law has imperiled the entire Internet broadcasting industry.

In the past 6 months, over 1,000 licensed American radio stations have ended the internet broadcasts of their over-the-air signals. Several Internet streaming providers have gone out of business and the financial viability of others is financially threatened by these fees. Innovation and consumer choice are being grossly harmed by a requirement which appears to have been written into law to financially benefit a single powerful interest group -- the RIAA.

With the developments in copyright law now threatening the financial viability and long-term future of Internet broadcasting, the technological innovation and consumer choice building potential of online broadcasting may be lost forever.

One of the things I found most exciting about Internet broadcasting was its ability to allow a diversity of programming to reach people no matter where they lived. When I lived and worked in Southwest Missouri, a region of the country with a local media without any programming targeted toward African-American, Hispanic, or Asian audiences, the ability to listen to stations over the Internet from other parts of the United States which programmed African-American music and musical programming from other cultures was a true treasure.

In my hometown of Minnesota, a low-powered station that serves the African-American community -- KMOJ-FM -- has been able to reach a much wider audience of interested listeners in the Minneapolis-St. Paul region and even out of state, despite its very weak over-the-air signal that really only can effectively reach a portion of the City of Minneapolis.

The DMCA legislation and the associated court decisions affirming the right of the RIAA to collect fees for all Internet broadcasts of music has dramatically affected the Internet broadcasting industry. Many stations have decided they cannot afford to broadcast on the internet any longer. The wonderful diversity in consumer choice that was becoming available over the past few years is now disappearing and may be irretrievably gone when the radio stations and streaming service providers still online must start handing over the fee payments and decide to give up broadcasting.

With the DMCA legislation of 1998, it is now very clear that Congress wrote a very shortsighted and ill-conceived law that has negatively impacted consumers and the development of an entire industry in a very substantial fashion.

Some analysts are now predicting that with the fee requirement, the only companies that will be able to afford to broadcast music over the Internet will be the record companies themselves as they are not subject to the fees. That's called a monopoly. I believe that this may have been the intended outcome when the RIAA successfully lobbied for the original fees provisions in the 1998 DMCA law. The result of the 1998 legislation is becoming very clear, consumer choices in listening are rapidly disappearing as the radio industry gets cold feet and leaves the Internet.

This is America,
laws shouldn't benefit single interest groups like the RIAA and the record companies at the expense of millions of consumers and entire industries (in this case licensed radio stations and the internet streaming companies).

I implore you to introduce and build support for legislation that will best protect the rights of consumers and the broadcasting industry. The DMCA must be rewritten to exclude broadcasters who offer their programming free of charge to Internet users from paying extra fees to the RIAA. This rewrite must cover both Internet-only radio stations and traditional broadcasters who make their signals available to the public over the Internet. It is completely unfair to make broadcasters pay extra fees for broadcasting on the Internet when they are not charging consumers anything to access this content.

The DMCA needs to be amended promptly. As the copyright provisions of the 1998 legislation are implemented they will very likely destroy the entire internet broadcasting industry and leave consumers with no more listening choices than they had before the mid-1990s and the pre-Internet days. An amendment to the DMCA Act will reinvigorate the internet radio industry and bring back the potential of the internet to contribute in a very important way to diversity and consumer choice in American broadcasting.

Thank you for your time and attention to this matter.


"Utterly contrary to free enterprise..."


Dear Senator Hatch:

Thank you for your outstanding service to the people of America. I am writing as a small market radio broadcaster, single station owner, who would like to continue providing an audio stream simulcast of our over-the-air analog broadcast for listeners on the Internet. We program a unique oldies-based format employing local announcers without utilizing any automation. In the area of the coastal Carolinas it is called "beach music."

Although we are federally licensed and already pay music licensing fees, recent legislation (the DMCA), U.S. Copyright Office rulings (in December, 2000) and high profile court decisions (the Napster case), have virtually outlawed the simultaneous streaming of our terrestrial broadcast on the Internet.

For WGQR and any radio station that seriously examines the current law and rulings, the fees we will have to pay (though still not determined) and revised programming hoops we will have to jump through, not to mention the digital equipment we will have to purchase in order to display title/artist/record company, make playing the beach music and oldies we love on the Internet a virtual impossibility.

Last night on C-span, I watched your hearings with great interest, however, my specific topic was never addressed. I will tell you, with all due respect, that the RIAA has done a real number on radio broadcasters.

It is not just the new fees that will be collected and distributed to the record companies that I object to; it is the air play restrictions on how many times a song or CD can be played, how it is to be introduced, etc., and the requirement for a digital read-out of the artist, title and copyright holder on our streaming window that borders on the ridiculous. Senator Hatch, we still play 45's and LP's! Much of our CD library is over ten years old! I can't justify manually encoding every song played.

The more I study this issue,
it is apparent that the major record companies, almost acting alone, were able to rush self-interest protectionist legislation through Congress in 1995 and 1998, that is so utterly contrary to free enterprise and our system of justice.

Do your realize that you have created a defacto license, permitting copyrighted music to be played, which only the few, huge record companies can qualify for and afford? Time Warner or Sony, for example, don't have to pay fees to play their own libraries. They don't even have to get a compulsory license nor pay any fee whatsoever, if all they play is their own library. A mere handful of major record companies can put up giant Internet "radio stations" and force everyone else off the digital net.

An audio stream, though digital, is hardly a quality reproduction; with all the rapid technological advances, the latest stereo version from Real Player or Media Player doesn't hold a candle to the sound of a good CD; the broader the bandwidth used, the higher the cost.

Moreover, there is virtually no comparison in the number of people who effortlessly receive a single station major market radio broadcast over the air and the number of on line listeners who can download a specific audio stream at the same time. One can number in the millions without ever buffering or crashing. The other can only number in the mere hundreds before the hardware and bandwidth requirements make it economically unfeasible.

Napster's enabling was wrong and in that case, I can't blame the record companies for their position and actions. But waiting for a single specific song to download, is not at all the same thing as "tuning in" to an audio stream. There is no doubt in my mind that our small station's Internet audio stream, alone, stimulated thousands of dollars in beach music CD sales without us earning a dime or seriously trying to. The local record store we link to on our web page will easily verify this.

People have been copying for their own personal use songs played on radio stations since the first tape recorder. We've been doing the same thing with movies on television. The recording industry certainly hasn't been harmed. The motion picture industry certainly continues to thrive. In both instances air play stimulated individual original recording sales or in the case of movies, rentals.

What makes the Internet so different? That it is digital? Remember when we went from AM to FM to High Fidelity to FM Stereo; from black and white to color to HDTV. The technology has changed and the quality has improved, but this is certainly not a good reason to change all the rules.

Simply put: broadcasters who stream an identical simulcast of their terrestrial signal should be exempt because we are already subject to appropriate licensing and fees. Congress long ago decided that the retransmission of a broadcast signal did not constitute a separate performance. What makes the Internet so different?

Thank you for your consideration. I welcome the opportunity to discuss my points in detail with the appropriate person of your staff. I am enclosing a few sample email messages we have received. Feel free to use my comments in anyway you see fit.

Lee W. Hauser
Owner/General Manager, WGQR







 

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