Congress Faces Online Music
April 3, 2001 -- Congress should give online music services the same rights as radio, the acting CEO of Napster said today in a Congressional hearing on digital music.
"Licensed music should be available over the Internet just like it is on the radio," Hank Barry, the interim head of Napster told the Senate judiciary committee. He said that such a license should include direct payment to artists similar to the so-called "writer's share" of public performances — royalties that artists receive when their work is used or performed.
"We want songwriters and artists to be paid," Barry said to the committee.
Today's hearing follows a similar discussion of copyright laws and online music held nearly a year ago.
Alanis Morissette, Don Henley Testify
In lawsuits filed since December 1999, prominent members of the recording industry have stated that Napster, an Internet site that allows music fans to swap digitized files of recordings, infringes upon their copyrights.
Last month, a federal injunction went into effect to limit the distribution of copyrighted material on its Web site. Napster has also announced plans to enact a subscription service by teaming up with Bertelsmann, a German media company.
Singer-songwriter Don Henley, formerly of Eagles, and Canadian singer-songwriter, Alanis Morissette, both weighed in today in support of the online music swapping site. They argued that musicians have been eclipsed in the debate between online music services and big record companies.
"The RIAA [Recording Industry Association of America] doesn't speak on behalf of artists, although sometimes they've given the impression that they do," Henley said. "Napster has changed everything … the solution resides in the marketplace, not the courtroom."
Morrisette said music companies and artists needed to embrace technology that can bring them closer to their audience.
"For the majority of artists, this so-called piracy has worked in their favor," she said. Morissette, one of the best-selling female pop musicians of the 1990s, said Napster helps less known musicians form an audience, which they can translate into payment through concert sales and merchandise.
Record Companies Stand Ground
Executives from some of the world's biggest media companies also testified in front of the Congressional committee chaired by Utah Sen. Orrin Hatch.
Jack Valenti, President & CEO of the Motion Picture Association of America and EMI executive Ken Berry testified that it is wrong for online users to have access to copyrighted material without paying for it. Hilary Rosen testified on behalf of the Recording Industry Association of America, a group that represents record companies.
Berry said EMI has invested in digital music adaptation, in the form of digital downloads and personalized compact disks. But music companies can't build businesses on the Internet when their copyrighted material is available for free elsewhere online, he said.