Performance Fee Legislation Talk Leads To Yet Another Serious Disagreement

Broadcasters Want FM On Mobile Devices

There's been many things that broadcasters and those supporting a Performance Fee for radio have disagreed on -- but one that they both embrace wholeheartedly -- adding FM tuners to mobile phones and other portable devices. 

However, there is a group staunchly against the idea. THE CONSUMER ELECTRONICS ASSOCIATION, reports ARSTECHNICA.COM.

The trade group, whose members build the devices that would be affected by such a directive, is more than angry. "The backroom scheme of the [NATIONAL ASSOCIATION OF BROADCASTERS] and RIAA to have Congress mandate broadcast radios in portable devices, including mobile phones, is the height of absurdity," said CEA President GARY SHAPIRO. Such a move is "not in our national interest."

Rather than adapt to the digital marketplace, NAB and RIAA act like buggy-whip industries that refuse to innovate and seek to impose penalties on those that do.

"Rather than adapt to the digital marketplace, NAB and RIAA act like buggy-whip industries that refuse to innovate and seek to impose penalties on those that do," continued SHAPIRO. "The performance royalty legislation voted out of the Senate Judiciary Committee does not include this onerous and backward-looking radio requirement."

Broadcasters have been seeking to not only lessen the amount the proposed performance fee would impose, but to get something in return for agreeing to it in the first place. What they want is mandated FM radio chips in portable devices.

"As regards the chip, this is a key issue for the radio industry," MUSICFIRST told ARS. "MUSICFIRST, too, likes FM chips in cell phones, PDAs, etc. It gives consumers access to more music choices."

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