 ASCAP CEO John LoFrumento with President and CEO of the NMPA Edward Murphy, a leader in the passage of "La Cienega." (Photo by Lester Cohen) |
It All Comes Down To... By early 1998, ASCAP had accomplished the following:
Passage of the "La Cienega" bill in conjunction with the National Music Publishers Association (NMPA) and other allied music organizations. This bill had been "held hostage" by a few members of the U.S. Senate who were sympathetic to the demands of the National Restaurant Association.
ASCAP pioneered new agreements with the National Licensed Beverage Association and the National Religious Broadcasters, followed by the other performing right organizations. This moved the NLBA and the NRB into a neutral position regarding the "Music Licensing" bills, leaving the NRA to push for passage.
Following the ASCAP negotiated agreements with the NLBA and the NRB, extensive negotiations had taken place exclusively with the NRA at the request of Senate Judiciary Committee Chairman Orrin Hatch (R-UT) and House Intellectual Property Subcommittee Chairman Howard Coble (R-NC).
These negotiations had culminated in a late 1997 agreement covering only eating and drinking establishments. However, the NRA reneged on the Hatch agreement, much to the Senator's annoyance, indeed outrage. By that point, the NRA had been isolated.
ASCAP was instrumental in bottling up the unfair "Music Licensing" bills in both the House and Senate Judiciary committees. Despite overwhelming approval by the Senate and House Judiciary Committees of the "Copyright Term Extension" bills, these much-needed bills had also been stalled.
When "Copyright Term Extension" finally began to move, the NRA was unsuccessful in its effort to stop the bill. The NRA suffered a 2 to 1 defeat in the Senate Judiciary Committee on "Copyright Term Extension," and were on the short end of a better than 2 to 1 vote count in the House Judiciary Committee. The bill at long last appeared to be making its way through the Congress.
A coalition was formed, including the motion picture industry, to urge passage of "Copyright Term Extension." The NRA, once again playing political hardball, persuaded the House leadership to refuse a full House vote on the "Copyright Term Extension" bill unless Congressman Sensenbrenner was permitted to offer a "Music Licensing" amendment. The stage was set.
The details of Sensenbrenner's amendment were not revealed until 24 hours before the March 1998 vote in the House. Congressman Sensenbrenner's proposal went well beyond the demands of the NRA, and created a new and broader coalition than had existed up to that point.
To replace the now-neutral NLBA and NRB, Congressman Sensenbrenner added to the NRA the National Federation of Independent Business (NFIB) and the National Retail Federation (NRF) by extending the "Music Licensing" exemption to retailers, and the National Homebuilders Association (NHBA), the American Society of Association Executives (ASAE), and the Consumer Electronics Manufacturers Association of America (CEMA).
 ASCAP brought together songwriters, composers and music publishers with key Members of the Senate Judiciary Committee. Shown above (l-r) are U.S. Senator Fred Thompson (R-TN), ASCAP members Sandy Brooks and Garth Brooks, ASCAP Board Member Donna Hilley of Sony/ATV Music Publishing in Nashville, Senate Judiciary Committee Chairman Orrin Hatch (R-UT), ASCAP Nashville VP Connie Bradley and Senator Patrick Leahy (D-VT).
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Perhaps the most potent adversary of all was the National Federation of Independent Business, representing hundreds of thousands of small businesses in Congressional districts across the country. The pressure was on.
On the day of the House vote on "Copyright Term Extension" in March 1998, these organizations listed it as a "key vote," which is part of their system of determining whether a candidate merits their future political and financial support. While the "Copyright Term Extension" bill had strong support across the political spectrum, Congressman Sensenbrenner was successful in his attempt to attach his "Music Licensing" bill as an amendment. His strategy worked; he had successfully bypassed the House Judiciary Committee, which had blocked his "Music Licensing" bill for so long.
In its final form, the Sensenbrenner Amendment contained an exemption of 3,500 net sq. ft. for eating, drinking, and retail establishments; an end to vicarious liability for "general" licensees; a mandated system of local arbitration around the country for any establishment wishing to challenge the fairness of ASCAP rates.
After Congressman Sensenbrenner's victory in the House, the "Copyright Term Extension" bill with his amendment languished in the U.S. Senate where Senators Orrin Hatch, Fred Thompson, Patrick Leahy, Ted Kennedy and other ASCAP supporters clearly indicated that they would prevent the bill from passing. At ASCAP's urging and with the active support of Vice President Gore, Secretary of Commerce William Daley wrote to the appropriate legislators indicating that anything like the Sensenbrenner amendment would generate a veto recommendation to the President. |