[Congressional Record (Bound Edition), Volume 150 (2004), Part 19]
[Extensions of Remarks]
[Page 25387]
[From the U.S. Government Publishing Office, www.gpo.gov]




           A SPEECH BY THE PRESIDENT OF THE RECORDING ACADEMY

                                 ______
                                 

                             HON. MARY BONO

                             of california

                    in the house of representatives

                       Friday, November 19, 2004

  Mrs. BONO. Mr. Speaker, one of our nations most precious exports is 
intellectual property. It is up to our country to care for and nurture 
this commodity. Thankfully, when it comes to the recording arts, we 
have an able and willing partner in the Grammys. To outline some of the 
challenges and creative measures taken by the industry, I would like to 
submit for the Record a speech given by Neil Portnow, President of the 
Recording Academy.

       It's always a pleasure to be back in Washington, and 
     particularly a pleasure to be back at our signature event in 
     the capital, GRAMMYs on the Hill. All of us at the Academy 
     consider it a privilege to have the opportunity to recognize 
     our distinguished honorees: Senator Hillary Clinton, 
     Representative Mary Bono, and the legendary Natalie Cole.
       Although it's been an interesting and challenging year for 
     the music community, it's also been an exciting one. Since we 
     last gathered for this event one year ago, we've seen a 
     number of positive developments--in the industry, in 
     technology, and on the Hill. And for the Recording Academy, 
     it has been a particularly busy year. One year ago, at this 
     very event, I announced the formation of our GRAMMY Cultural 
     Policy Initiative: designed to advance the rights of the 
     music community through advocacy education and dialogue. I'm 
     pleased to report significant progress in the Initiative's 
     first year.
       Our off-the-record GRAMMY Industry Roundtables serve as the 
     place for productive dialogue between sectors of our industry 
     that don't often interact. Roundtable participants have 
     included artists such as Dave Matthews and Jimmy Jam, 
     industry trade reps from RIAA and NARM, label executives, and 
     legal scholars. By putting such diverse minds together, we 
     believe our community can begin to develop solutions to the 
     challenges we face.
       Public forums, such as our GRAMMY Town Halls bring key 
     legislators, GRAMMY winning artists, and the public together 
     to discuss important issues such as broadcast decency and 
     file sharing, while our ``What's the Download'' PSA campaign 
     has given hundreds of thousands of consumers valuable 
     information about the legal and ethical issues involved in 
     downloading.
       Through hands-on action in Washington, D.C., we help our 
     legislators understand the importance of sound cultural and 
     intellectual property policies. Recording Academy executives 
     and artists from around the country are frequent visitors to 
     the Hill as part of our Cultural Policy Initiative. To 
     further advance artists rights in Washington, the Academy 
     worked closely with our friends Rep. Steny Hoyer (D-MD) and 
     Rep. Mary Bono (R-CA) to help them launch the Recording Arts 
     and Sciences Congressional Caucus, a congressional body 
     designed to advance artists' rights in the House of 
     Representatives.
       We are pleased with the progress of the first year of our 
     GRAMMY Cultural Policy Initiative. But there is much more 
     work to be done. These are critical times for artists--and 
     the music community (labels, artists groups, PRO's and 
     unions) must all work together to improve the environment for 
     creators.
       As I travel around the country to our 12 Chapters, I have 
     the opportunity to speak to thousands of music professionals. 
     It's a diverse group, representing many genres and cultures, 
     young and old, male and female. I speak to platinum artists 
     and those hoping for their first big break. When we discuss 
     the complex legal and economic issues facing artists today, I 
     hear a lot of differing views. I hear about decreased CD 
     sales, barriers to radio airplay, and other challenges 
     artists face. But the one word I hear most often may surprise 
     you. That word is ``respect.''
       Musicians want their works respected. They want the choice 
     to decide how their music will be distributed. They want to 
     decide when their new work will be released. And they want to 
     control the quality of those recordings. So while there are 
     plenty of discussions about lost revenue in our industry, 
     allow me to focus on that all important R-word, and 
     specifically address two areas in which artists are 
     disrespected. File sharing is one such issue. Tracks are 
     often uploaded on P2P sites before their release dates. 
     Quality is often poor. Songs are ``traded'' like a commodity 
     without any consent by the owner or creator. Yes, we know 
     file sharing services cause damage to our industry. Yes, we 
     know they hamper legitimate services from fully blossoming. 
     But let us never forget an equally grievous outcome: These 
     services disrespect artists.
       So how do we address this problem? The most significant 
     response and deterrent available to the industry has been to 
     sue individual computer users. Everyone in our community 
     would prefer a better way. Well, thanks to some forward-
     looking Senators, including our honoree Senator Clinton, 
     there may in fact be another option. That is why the 
     Recording Academy supports the Induce Act.
       Co-sponsored by Senators Alexander, Boxer, Clinton, 
     Daschle, Frist, Graham, Hatch, Leahy, Sarbanes and Stabenow, 
     this bi-partisan Act would put responsibility where it 
     belongs: at the feet of those companies whose sole service is 
     to induce others to violate copyright laws.
       In a recent Billboard column, the Consumer Electronic 
     Association CEO Gary Shapiro claimed that, ``Aside from the 
     MPAA and RIAA, the [Induce] bill has no public supporters.'' 
     Well, with all due respect to the CEA, ASCAP, BMI, SESAC; AFM 
     and AFTRA; Recording Artist Coalition, The Songwriters Guild, 
     Nashville Songwriters Association, Music Manager Forum, and 
     others all join the Recording Academy in supporting the 
     Induce Act.
       So to our friends in the technology community, please 
     understand that our organizations, together representing 
     hundreds of thousands of creative professionals, are all VERY 
     public supporters of this bill. We want to work with you. We 
     urge you to work with us, as well as with these visionary 
     Senators. Together we can help to pass a fair bill that 
     protects legitimate technologies, prevents illegal file 
     duplication, and respects the backbone of our industry, the 
     creative artists.
       Finally, on the subject of respecting artists and the music 
     they create, there is one area the Academy is determined to 
     address. The time has come for U.S. radio stations to join 
     the rest of the industrialized world and compensate artists 
     for using their works on the air.
       A performance right for artists is long overdue. Hundreds 
     of millions of dollars that rightly belong to copyright 
     owners and creators go unpaid without this right, and we call 
     on Congress to correct this historic inequity as soon as 
     possible.
       We will not allow the discussion to turn into a debate 
     about radio's so-called promotional benefits. To appreciate 
     the absurdity of that argument, imagine this: A movie studio 
     tells a novelist he will not be compensated for the rights to 
     his book, because the movie version will promote his sales. 
     Such a concept would never be accepted in any other industry. 
     But it is standard practice in ours.
       And we will not allow the discussion to turn into a zero 
     sum game, pitting artist against songwriter. Current 
     songwriter royalties should and will be protected. A new 
     performance royalty for artists must be in addition to that 
     paid to writers.
       This goal is not without its challenges, and our efforts 
     will not be without opposition. But through the combined 
     efforts of our music coalitions, and with the help of a 
     Congress that understands the importance of music to our 
     economy and certainly to our quality of life, we will see a 
     future that not only provides fair compensation to creators, 
     but also gives artists the respect that they deserve.

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