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Big Radio Aims To Take Small Business Aid Under New Stimulus Bill

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Believe it or not, Big Radio could use funds and protections for small businesses to increase their staggering corporate wealth
Nate Hertweck
Advocacy
May 20, 2020 - 3:54 pm

Big Radio is trying to enrich their organizations by draining federal stimulus funds meant for struggling small businesses that are trying to survive during this unprecedented and unpredictable pandemic.  

On May 15, the House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. While the $3 trillion stimulus bill includes multiple creator-friendly provisions – such as another round of direct payments and extending the Federal Pandemic Unemployment Compensation (FPUC) benefit of $600 through the end of the year – the bill would offer major radio stations direct financial assistance.

"There is a difference between supporting vital local news outlets and billion dollar broadcast conglomerates, especially given that these enormous [terrestrial] radio conglomerates refuse to compensate recording artists for using their music."

Under the legislation, Big Radio and broadcasting companies would be eligible for Paycheck Protection Program loans, which were originally intended to keep small businesses afloat during this tough economic time. Rather than saving funds to help your favorite mom-and-pop restaurant keep their lights on, Big Radio will instead take the limited federal relief money and increase their staggering corporate wealth if this bill is enacted into law.

While many believe that this House-passed legislation is ‘dead on arrival’ in the Senate, the worry remains that the upper chamber could adopt a similar negotiating proposal to aid Big Radio.

Along with A2iM, the Future of Music Coalition, and SoundExchange, the Recording Academy released a statement condemning this provision in the HEROES Act, stating, “there is a difference between supporting vital local news outlets and billion dollar broadcast conglomerates, especially given that these enormous radio conglomerates refuse to compensate recording artists for using their music, in contrast with satellite radio and streaming services that do pay.”

The statement concludes with the sober recommendation: "With so many people in need at this time, let's keep the focus where it should be: small businesses and workers, not on big broadcasters."

Instead of bailing out Big Radio, Congress should focus on passing relief for the true small businesses—including the smallest of small: artists, songwriters, producers, and creators struggling with the pandemic.  One such step would be passing the AM-FM Act, a bipartisan and bicameral bill that would require radio stations to ask permission and negotiate a fair market rate before playing a creator’s music. You can add your voice to the chorus of support for the AM-FM Act by contacting your Members of Congress today and urging them to support this necessary legislation. 

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Harvey Mason jr.

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Recording Academy's Harvey Mason jr. Testifies On AM-FM Act & Stimulus

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The music industry membership organization's Chair & Interim CEO took the (virtual) stand today on behalf of music makers
Nate Hertweck
Advocacy
May 27, 2020 - 3:54 pm

With so many people and professions affected by the coronavirus crisis, now is the time for music industry leaders to speak up and advocate for their community. With this in mind, Recording Academy Chair & Interim CEO Harvey Mason jr. testified today in front of the Senate Judiciary Intellectual Property Subcommittee on the scope of music rights in sound recordings, the dire need for the United States to catch up with other free countries by passing the Ask Musicians for Music (AM-FM) Act, and the importance of supporting music creators in the next phase of COVID-19 relief stimulus.

"Any future relief package should get people back to work, not give industries unfair advantages," said Mason jr. "Unfortunately, musicians will not be able to get back to live performances soon, so the next stimulus should ensure they get paid fairly for their music that has been a lifeline for our fellow citizens. As the Section 512 study showed last week, there are many ways Congress can do more to help the music community, such as including the AM-FM Act in the next COVID-19 bill."

The AM-FM Act, a bipartisan and bicameral bill introduced by Sen. Marsha Blackburn (R-Tenn.) and House Judiciary Chairman Jerry Nadler (D-N.Y.), would establish a performance right for sound recordings broadcast by terrestrial radio, ending a decades-long loophole that has enabled AM/FM radio broadcasters to use the music of hard-working performers and producers without obtaining any form of permission or paying any compensation. Under the AM-FM Act, artists, producers, and copyright owners would be able to negotiate fair market rates with broadcasters in exchange for permission for it to be aired.

“Radio is the only business in America that can use someone else’s intellectual property without permission or compensation. Fixing this copyright anomaly should be a priority of the Senate Judiciary Committee," Mason jr. said.

This blind spot in American policy also underscores the glaring discrepancy between the U.S. and other countries around the world, including the U.K. and Canada, who pay performance rights royalties to the musicians and artists' whose music is played on terrestrial radio.

"The United States of America: the one country in the world that should be a leader in free market transactions, a leader in protecting intellectual property, and a leader in assuring fair pay for one’s work. Yet sadly, we are the one country that does not recognize a performance right for sound recordings," said Mason jr.

With millions of music makers living in uncertainty,  Congress holds a valuable opportunity in its hands to ensure they receive fair support alongside other small business and finally institute the long-overdue performance rights for sound recordings that would pay creators what they deserve for their work.

Ironically, the National Association of Broadcasters (NAB) has continued to fight against the AM-FM Act and performance rights for sound recordings even though the broadcasters themselves enjoy the very same rights to permission and compensation they are denying creators. Mason jr. explained:

"Just two weeks ago the NAB CEO, Gordon Smith, told his members: 'We don’t know how long this pandemic will last, or what the lasting effects of it might be on our economy. But there is one thing I do know… broadcasters endure.' I wish I could tell our members the same thing. In this crisis, many workers are sadly not getting paid because their work is not needed at this time. But on radio, musicians are not getting paid while their work is needed more than ever. The current crisis has shone a bright spotlight on this injustice. And the time to fix it is now."

During the hearing, Mason jr. discussed how local radio provides entertainment for the general public, which is primarily due to the efforts of music creators. For non-music content serving as “entertainment” on terrestrial radio, Mason jr. reminded the panel that stations pay those entities a fee to broadcast that content on their airwaves, specifically sporting events. Mason jr. stated that he is open to having future discussions with the NAB about these issues and requested Congressional involvement in those negotiations.  

The AM-FM Act is finally getting its due consideration by the Senate Judiciary Committee and would be a critical victory for artists’ rights. You can help to advance the bill by contacting your lawmakers and ask for their support.

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Music Community Unites To Send Letter To Congress Seeking New Relief

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"Our situation is dire," the letter states. "There is a hole in this safety net that Congress must fix in the next version of the CARES Act"
Nate Hertweck
Advocacy
May 13, 2020 - 3:56 pm

As the coronavirus crisis continues to devastate music makers, the music community has come together to draft and send a united letter to Congress on May 8, and the message is simple: "our situation is dire."

In the letter, which was written in collaboration with our fellow allies in music, the Recording Academy called on Congress to reduce unfavorable restrictions for the self-employed in the Paycheck Protection Program (PPP), to amend the Economic Injury Disaster Loan (EIDL) to better assist the self-employed, and to improve the Pandemic Unemployment Assistance Program (PUA) to more adequately accommodate workers with mixed-income sources.

"While we appreciate the efforts of lawmakers to meet the challenges of this pandemic, we need to ensure that our community is getting the aid they need to survive," the organizations wrote in a joint statement. "Musicians are struggling to access the basic financial resources available due to conflicting and burdensome requirements in relief programs. Simply, there is a hole in this safety net that Congress must fix in the next version of the CARES Act."

The music community’s message was amplified by members of Congress this week. A letter led by Chairman Jerry Nadler (D-N.Y.) of the House Judiciary Committee outlined similar concerns, elaborating on the issues facing the creative workforce and calling on House Leadership to address these concerns in an upcoming relief package.

While an additional letter led by Reps. Judy Chu (D-Calif.) and Adam Schiff (D-Calif.) focused on fixing PUA for workers with mixed-income sources. Their letter, signed by more than 20 members of the House of Representatives, asked for additional protections for independent workers with multiple types of income in future coronavirus legislation. Currently, independent workers have been struggling to receive much needed financial relief under the CARES Act due to the legislation favoring traditional employment arrangements.

“Due to the sporadic and unpredictable nature of work in film, television, theater, and music, many professionals in the entertainment industries earn a living through a combination of traditional (W-2) and independent (e.g. 1099) employment,” the Members wrote in their letter. “As a result, even if they have lost a substantial source of income due to coronavirus-related disruption of their independent work, these workers are ineligible for Pandemic Unemployment Assistance.”

The House is expected to vote on a new relief package, called the HEROES Act, as soon as Friday—but more negotiations will be needed with the Senate and White House before future assistance is delivered to the American workforce. With the music community and lawmakers coming together in support of the independent workers who need it the most, hopes are high that a bipartisan and bicameral relief package will address the unique needs of those in the music community who are suffering.

To further support music makers during these difficult and uncertain times, the Recording Academy and MusiCares recently established the COVID-19 Relief Fund.

For more information and developments related to the coronavirus, visit the World Health Organization and Centers for Disease Control and Prevention for ongoing news and updates.

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Streaming Is Down, Festivals Are Dark: How Music Is Coping With COVID-19

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The Recording Academy is offering daily Q&A, an online informative information hub, in-depth webinars and more to keep music creators going
Nate Hertweck
Advocacy
Apr 15, 2020 - 3:59 pm

One month since many Americans began to live life altogether differently, COVID-19 continues to devastate the music world. From taking the lives of such pillars of its community as John Prine, Hal Willner and Adam Schlesinger, to the financial fallout created from mass cancellation of all tours, festivals and events, music creators have been hit hard and fast by the pandemic. Even the relief plan passed to provide critical aid to music makers has encountered issues, as creators struggle to navigate the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

An Industry Hit Hard

Making matters worse, new data shows that streaming is down, contrary to widespread hopes that more time at home during the era of social distancing would result in a listening boom. Sadly, music streaming was down 7.6 percent for the week of March 13 with digital album sales also down 12.4 percent. Even physical sales took a big hit, dropping 27.6 percent, according to Rolling Stone's Alpha Data.

On the live event side of the business, Forbes reports over 300 festivals have announced cancellations or postponements, affecting 90 percent of workers in the festival industry. To put the festival falloff in perspective, Coachella, which boasted a $700 million economic impact in 2016, was supposed to start this past weekend.

Cities that usually thrive on live music, like New Orleans, are most susceptible to the crisis. The Big Easy has 38,000 "cultural workers" with jobs in music venues and restaurants, nearly 10 percent of its entire population, and musicians make an average of just $17,800 a year according to the Washington Post.

As the industry reels from the ongoing effects of COVID-19, the Recording Academy has made it a priority to work with lawmakers to ensure that the nation’s recovery efforts are inclusive of music makers and the industry. The CARES Act established many new parameters that should help the struggling artists, songwriters, studio professionals, and other industry workers who are out of work, underworked, or simply unable to work.

Valuable Resources

With so many challenges facing music creators, many of whom were already struggling to make a livable wage, it is important to know what support resources are available to the music community. The Recording Academy has joined other groups in the music community by helping to launch the Music COVID Relief website, which contains the latest updates on the Federal Government’s response to the coronavirus.

Also, if you missed last week’s CARES Act webinar, a detailed discussion of how the new law affects music creators, you can watch it here. Additional webinars and programming will be announced soon to further dive into these new benefits.

The Academy has also started posting “COVID-19 Relief for Music Creators: Question of the Day” on its social feed. The daily Q&A has already provided insight on how songwriters can file for "gig" employment status, how and where independent contractors should file for unemployment, and more.

If you have a question regarding the CARES Act, what aid is available, or how it impacts you, please feel free to submit questions to the Recording Academy’s CARES Act Helpline here. A team of legal and policy experts will get back to you with answers.

Making The Stimulus Work For You

Even with a $2 trillion stimulus already passed into law, the fight for relief is far from over. The Recording Academy continues to raise the voices of the music community, letting officials around the country know how critical this time and their support is for creators.

Along with other members of the music community, the Academy sent letters to several Governors and State Labor agencies, and to US Secretary of Labor Scalia, regarding the CARES Act. The letters address implementation of the Pandemic Unemployment Assistance (PUA) program for self-employed individuals, including the need for clear guidance on how to file for unemployment, a full accounting of annual income when calculating the weekly benefit amount for self-employed individuals, and retroactive payments under the PUA program.

Looking ahead, Congressional talks regarding additional COVID-19 relief funding have stalled. To stay informed on the latest developments, visit the Music Covid Relief website.

To further support music makers during these difficult and uncertain times, the Recording Academy and MusiCares recently established the COVID-19 Relief Fund.

If you are an artist or music professional who has been impacted by this unprecedented circumstance and are in need of assistance, please visit our MusiCares page to learn more about the financial, medical and personal emergencies services and resources offered by the Recording Academy.

For more information and developments related to the coronavirus, visit the World Health Organization and Centers for Disease Control and Prevention for ongoing news and updates.

Learn More About What The CARES Act Means For Music Makers

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Advocacy Questions And Answers: The Latest On COVID-19, CARES Act & More

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Keep up with the latest on how the stimulus affects music makers, what's next for Congress' "Phase Four" and how you can help support the music community
Nate Hertweck
Advocacy
Apr 8, 2020 - 3:45 pm

Across the U.S., this is a critical week in the fight to flatten the curve of coronavirus, and it's also a time when many music creators are figuring out their next steps through the crisis. Between the new $2 trillion stimulus, understanding the implemented law, and upcoming legislation, the path can be daunting to navigate for professionals who've made their life—and their living—in a creative field. The Recording Academy is providing resources to help creators access the much needed financial relief that they are entitled to under the CARES Act and other laws.

The $2 Trillion Stimulus, Unpacked

To help creators find their way forward, the Recording Academy kicked off this week by hosting a virtual panel to discuss the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Moderated by the Recording Academy’s Chief Industry, Government and Member Relations Officer Daryl Friedman and featuring Congresswoman Linda Sánchez (D-Calif.), Recording Academy Chairman and Interim CEO Harvey Mason jr., and experts from the Greenberg Traurig law firm, the one-hour discussion covered many timely topics for music creators.

The group unpacked the CARES Act and its key protections and provisions that put music creators in a better position for immediate and long-term financial relief. These include authorizing a new pandemic unemployment assistance program for eligible self-employed workers, creating new Small Business Administration loans for self-employed workers, and establishing a $75 million supplemental fund for the National Endowment for the Arts. If you did not have the opportunity to join us on Monday, the webinar can be viewed here.

Your Questions Answered Daily

To keep the information flowing, the Recording Academy will be sharing daily "Advocacy Questions and Answers" to help update our members on any changes to the CARES Act’s programs and benefits. As these programs are implemented, there will be a shifting landscape as to how to receive the benefits that creators are eligible for under the new law. Additional information regarding the CARES Act and its funding can still be found at MusicCovidRelief.com.

A Look Ahead At What’s Next

While the CARES Act is being implemented, Congress is continuing to look forward to other legislative solutions to relieve the financial burden on Americans. Already Congressional leaders are looking to quickly bolster one of the key SBA loan provisions in the CARES Act with additional funding, and beyond that Congress is actively beginning to form a “Phase Four” bill to continue to combat issues in the economy and the workforce. Again, you can stay closely posted at how upcoming legislative activity impacts music creators at MusicCovidRelief.com.

How Can You Help?

To further support music makers during these difficult and uncertain times, the Recording Academy and MusiCares recently established the COVID-19 Relief Fund.

If you are an artist or music professional who has been impacted by this unprecedented circumstance and are in need of assistance, please visit our MusiCares page to learn more about the financial, medical and personal emergencies services and resources offered by the Recording Academy.

For more information and developments related to the coronavirus, visit the World Health Organization and Centers for Disease Control and Prevention for ongoing news and updates.

Learn More About What The CARES Act Means For Music Makers