Clear Channel stopped asking independent musicians to forego onli...
Clear Channel stopped asking independent musicians to forego online royalty payments to get air play allotted to upstart artists, said company officials and an artist advocacy group. The company had asked artists to waive digital performance right royalties when…
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submitting online requests for songs to be played, prompting the Future of Music Coalition (FMC) to complain to the FCC (CD July 16 p14). In settling an FCC payola inquiry, Clear Channel agreed to air 1,600 hours of songs from independent artists. On July 12, Clear Channel reworded its online song submission form to clarify that it is not asking artists to forego royalties, said an executive. The same day, FMC said Sen. Russ Feingold, D-Wis., queried Clear Channel and three other broadcasters participating in a $12.5 million FCC payola settlement. FMC hailed the Clear Channel move, saying it “ensures artists can keep their rights to their public performance royalties.” The fracas was a “David vs. Goliath story,” said FMC Executive Director Jenny Toomey. “After years of dictating terms to the music industry, Clear Channel is clearly on the defensive now,” she said. Disputing FMC’s characterization, Clear Channel said it reworked the online royalty contract terms after the American Association of Independent Music (A2IM), which brokered the air time deal, brought the matter to its attention. “We never had any intention of not paying licensing fees for radio air play or for online streaming of simulcast programs,” said Clear Channel Chief Legal Officer Andy Levin. “We clarified it well before FMC filed its misleading and misinformed petition.” FMC’s complaint is “a perfect example of no good deed goes unpunished,” he said. Despite Clear Channel’s contract rewrite, FMC will not withdraw its FCC complaint; it wants the commission to clarify all broadcasters’ obligations, it said. “We want to make sure the rules are as clear as possible so we don’t ever have to get into this situation again with anyone else,” said Toomey. “We want a clear line in the sand, because there is nothing to prevent them from reverting to a similar practice.” Clear Channel, A2IM and the Recording Artists Coalition on Friday asked the FCC to dismiss FMC’s petition. The three entities said in a joint FCC filing that the “revised license terms will ensure fair treatment to recording artists and independent labels.”