Guys, this will affect all of us somehow, in some way if the music industry has its way and convinces Congress to make a law forcing XM to pay significantly higher royalties than the currently HIGHEST ROYALTIES paid in the business.

XM's Reponse:
http://www.xmradio.com/lineup/statement.jsp?refsrc=hp_ex

Read the article, and futher below are portions of Gary Parson's (Chairman of XM) testimony.

I urge you to write an email to your congressman and let them know what a scam this is and how it may affect YOUR wallet if passed. Don't you think the music industry gets enough money already?

Here is a website to help you locate your congressperson in regard to THE PERFORM ACT:

http://www.house.gov/writerep/

http://www.senate.gov/general/contact_information/senators_cfm.cfm

http://www.redherring.com/article.aspx?a=16642

Music Gets Loud in US Senate

XM and Warner square off as music industry pushes bill to force satellite and Internet radio to pay the piper.

April 26, 2006

Entertainment industry representatives pushed a U.S. Senate committee on Wednesday to consider new legislation that would force emerging music resellers such as satellite, cable, and Internet radio to pay more royalties to the music industry.

The bipartisan bill—Parity, Platforms and Protection: The Future of the Music Industry in the Digital Radio Revolution—seeks to update the compensation structure in the music industry to match relationship changes initiated by the emergence of digital music services.

The Perform Act, as the bill is called for short, is sponsored by Senators Dianne Feinstein (D-California), Lindsey Graham (R-South Carolina), and majority leader Bill Frist (R-Tennessee).

The judiciary committee heard from industry leaders such as Edgar Bronfman Jr., chief executive of Warner Music Group; Gary Parsons, chairman of XM Satellite Radio; N. Mark Lam, chief executive of Live365, an Internet radio company; and Todd Rundgren, lead singer of The New Cars.

The hearings struggled to define what constitutes music performance versus music distribution in a rapidly changing market.

How they Charge

The music industry charges royalties along a continuum. The rates depend on whether the listener can possess copies of the music. Purely passive listening, or performance as it is called, as happens in free, traditional radio is at one end of the continuum. iTunes, which charges the user to download copies of the music for personal play, is at the other end.

Satellite and the Internet are governed by compulsory licenses, which are closer to the performance end of the scale. But satellite subscribers can download songs they hear on their receivers to MP3 players, and therein lies the rub.

XM executives seek to define their downloads as something more akin to listeners taping a song from the radio for free.

"Our subscribers, just like radio listeners have done for 50 years, have the right to make a single copy of a song for themselves,” said Mr. Parsons of XM, the largest satellite radio distributor in the United States. “They don’t have the right to distribute that copy on the Internet for others.”

But the music industry has stood foursquare against this view of performance versus distribution.

"XM has paid market rates for everything from Oprah Winfrey to baseball, but not the music on which it built its business,” said Warner’s Mr. Bronfman. “It is not fair for satellite radio to turn performances into distributions without paying distribution licenses.”

Mr. Bronfman likens XM’s sponsored download device to the iPod, saying it is simply an iPod-like device linked to a supply of “free iTunes music.”

XM Pays Sirius Royalties

XM and its satellite radio rival Sirius actually pay tens of millions of dollars in performance royalties to the labels, writers, and performers while terrestrial radio pays nothing. XM pays more in royalties than any other single company, under the terms of a deal established in 1998.

“Consumers want more choice as to where they hear their music, such as places where the satellite signal cannot reach,” Mr. Parsons said. “We designed these [MP3] devices to fully comply with copyright law. Recording from the radio is not a download service.

“Everything recorded from the radio is locked to the device,” he continued. “It cannot be transferred to the Internet ensuring that it is only for personal use. And you can only hear the material as long as you remain an XM subscriber.”

The Perform Act seeks to clarify the definition of performance as in the passive listening of a song on the radio after which it disappears forever, and distribution in which the listener takes possession of a copy of the music.

***********END OF ARTICLE**********

Here are some portions of Gary Parsons' testimony in regard to this bill.

XM RADIO CHAIRMAN GARY PARSONS TESTIFIES
AT SENATE HEARING ON “THE FUTURE OF THE MUSIC INDUSTRY
IN THE DIGITAL RADIO REVOLUTION”

Washington, D.C. – April 26, 2006 -- Gary Parsons, XM Satellite Radio chairman of the board, is scheduled to testify today before the Senate Judiciary Committee at a hearing entitled "Parity, Platforms, and Protection: The Future of the Music Industry in the Digital Radio Revolution."

In prepared testimony, Parsons says:

“Satellite radio is an American success story, and we play by the rules. We pay for the right to play music. And our manufacturers pay for our subscribers’ right to record what is played.”

“In addition to exposing customers to new music, XM also pays tens of millions of dollars to performing artists, songwriters, record labels and music publishers. While terrestrial radio giants are exempt from paying performance rights, XM Radio is the largest single payor of sound recording performance royalties.”

“Congress created balanced copyright laws to protect the rights of users as well as rightsholders. XM protects the interests of content owners, and will strongly fight to defend consumers as well.”

“We pay [royalties] under the structure put in place by Congress in 1998 and supported by the major record labels at that time. Now, the record industry is back, asking you to rewrite the established rules for performance rights…just as we begin the renegotiation of rates for the next five years. Based on our current rates alone, satellite radio will pay hundreds of millions of dollars over this period.”

“The proposed Perform Act is not about piracy. And given that it changes the rules for XM but not for broadcast radio, it is not about parity either.”

“The labels also seek to eliminate long-held consumer rights. For decades, a consumer’s right to record material for their personal use off the radio has been upheld by the courts, honored by Congress, and reinforced by the Audio Home Recording Act.”

“We have introduced a new generation of innovative devices to let subscribers hear live XM on the go…Just because it’s convenient, doesn’t mean it’s illegal. XM and its manufacturing partners designed these devices to fully comply with copyright law. And despite the record companies’ claims, recording from the radio is not a download service.”

About XM Satellite Radio
XM is America's number one satellite radio service with more than 6.5 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM's 2006 lineup includes more than 170 digital channels of choice from coast to coast: the most commercial-free music channels, sports, talk, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Toyota, Hyundai, Nissan and Volkswagen/Audi, is available in more than 130 different vehicle models for 2006. XM’s industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com .

# # #

Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include demand for XM Satellite Radio’s service, the Company's dependence on technology and third party vendors, its potential need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 10-K filed with the Securities and Exchange Commission on 3-3-06. Copies of the filing are available upon request from XM Radio’s Investor Relations Department.
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www.MyRadioStore.com - XM Radio & Opie & Anthony Hats/Shirts. The latest XM Hardware and ALL Accessories! Pioneer Inno, Skyfi 3, Samsung Helix, and More!

Last edited by Ziggy on Mon Sep 11, 2006 3:07 pm; edited 5 times in total

Terrestrial should have to pay for the music they play, instead of getting paid to play the same shit, over and over...

I did my part. Write the letter and post when you have finished.
bnh

I contacted my representative just now. Hopefully this bill will not get passed. Why are AM and FM stations not affected by this? THEY are the ones who should be paying the higher fees since listeners can hear the stations for free.
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You can check out http://xmbootcamp3.blogspot.com to read my XM blog!

I've blocked the CC music channels from my radio (including WSIX)!

Done.

It'd be nice to get O&A and Ron and Fez on this. I'm sure the pests could stir something up.
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PDuffman004

Bring back Music Lab!!!

I feel better now. Just e-mailed all my representatives in Virginia. Recently, I heard they passed some piece of legislation that will tax satellite radio subscriptions in VA.
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FCC, PLEASE KILL THE MERGER BEFORE THE MERGER KILLS SATRAD!

Wow! I have both an Inno and MyFi. neither allow you to record a specific artist. What a load of crap!

I did my part.
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