snipped-for-privacy@bbs.cpcn.com wrote in news: snipped-for-privacy@telecom-digest.org:
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(IANAL, this is just my opinion, do not rely on this as legal advice. Furthermore, this reflects my understanding of the situation in the USA only. If you need legal advice, hire a lawyer.)
Yes, and no. Radio stations pay a royalty to the composers and (lyric) authors (or, more correctly, to the publishing company to which they sold the rights) indirectly through license contracts with ASCAP and BMI (and sometimes a 3rd agency, SECAC, which represents a miniscule portion of the authors and composers). ASCAP and BMI license their entire libraries (and not just to radio stations, but also to stores that play music, bars, restaurants, and night clubs) for a single negotiated fee, take samples of music usage, and distribute their collections (less collection fees and profits) to the rights holders in proportion to the works' standings in the sample results.
On the other hand, the actual performers (or the holders of their royalty rights) receive nothing from the radio stations. They are held to be fully compensated by the exposure they receive and the increased record and live performance ticket sales resulting therefrom. (Except, of course performer- author-composers, who still receive their author/composer royalties, but nothing extra as performers.)
Record companies don't figure into the equation, unless you consider the illegal practice of payola, wherein they allegedly pay stations or DJs to play certain songs, but we all know that's illegal, so no one would actually to that (wink, wink; nod, nod). In fact, most folks in the radio biz would be "shocked! shocked!" (like the police chief in _Casablanca_), to hear that anything like that goes on.
As to the 2nd question, IANAL, but my understanding is that under the Sony Betamax decision, a person has at least the right to record off the air for the purpose of time shifting, that is, a single viewing in their own home for the enjoyment of themself and their family. I think (with less certainty) one may also have the right to keep the recording around for more than one viewing. I certainly believe one does not have the right to sell (for cash or barter) the recording or charge admission to a viewing. I suspect trading or lending like for like with other enthusiasts to fill gaps in one's viewing is a gray area.
-- Rich Wurth / snipped-for-privacy@att.net / Rumson, NJ USA
[TELECOM Digest Editor's Note: Regards the first part of your statement on paying royalties what about classical music stations, where a great deal of the music itself is in the public domain, owing to the age of the compositions, etc? PAT]