NAB Responds To 'False Statement' From musicFIRST

Not In Agreement

YESTERDAY (NET NEWS 10/25) THE NATIONAL ASSOCIATION OF BROADCASTERS Radio Board Of Directors voted in favor of presenting musicFIRST representatives a legislative "Term Sheet" designed to resolve the longstanding performance fee issue.

The cooperative mood didn't last long.

TODAY (10/26), NAB Pres./CEO GORDON SMITH issued a statement in response to a posting on the musicFIRST COALITION website, which suggested that an agreement had been reached in JULY regarding the performance fee issue. 

musicFIRST spokesperson TOM MATZZIE said, “While we are pleased that the radio broadcasters have for the first time acknowledged their obligation to pay the artists who are the foundation of their business, we are disappointed that they failed to vote on the deal both parties agreed upon in JULY. After a quick review, this new term sheet differs significantly from that agreement. We will be reviewing their term sheet further.”

SMITH responded, "We are disappointed by comments from our friends at musicFIRST representing that there was a definitive JULY agreement or a handshake settlement with NAB on terms for resolving the performance royalty issue. This is demonstrably false. If this were true, why would our two sides have continued with negotiations in AUGUST, SEPTEMBER and OCTOBER?"

Clear Channel Backs Up The NAB

Meanwhile, CLEAR CHANNEL has released a statement, supporting the NAB's efforts to forge a compromise:

CLEAR CHANNEL is very appreciative of the consistent and tireless work of the NAB Radio Executive Board on public performance royalties. We have encouraged -- and continue to encourage -- NAB to stay engaged in good-faith discussions with MusicFIRST. Those discussions should continue.

[Do you think musicFIRST will soften and see this move by the NAB as a nice olive branch? Please post your comments below!]

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