NAB reports (Jan-Dec 1941)

1626 K STREET, N. W. WASHINGTON, D. C. Vol. 9, No. 5, January 31, 1941 THE WEEK IN WASHINGTON BMI signed a consent decree in the United States District Court for the Eastern District of Wisconsin, in which BAII agreed not to engage in activities which the Justice Department alleged would constitute viola¬ tions of the Sherman Act. The Department then an¬ nounced it would proceed criminally against ASCAP under the antitrust laws. (p. 95) NAB and AAAA committees are continuing their efforts to compose any differences remaining between the two groups in respect to recommended station facili¬ ties contract, (p. 98) FCC officials and members of the National Television Systems Committee on January 24 and 25 saw demon¬ strations of recent television developments, (p. 100) District meetings were held in Districts 10, 14, and 17. (p. 102) The Attorney-General’s Committee on Administrative Procedure made public its report last Saturday, (p. 103) The House of Representatives appropriated $4,259,729 for the FCC for the fiscal year starting next July 1. (p. 105) BMI Consent Decree The Department of Justice announced last Monda>' that Broadcast Music, Inc., had signed a civil decree in the United States District Court for the Eastern District of Wisconsin, in which it agreed not to engage in activities which the Department alleged would con¬ stitute violations of the Sherman Act. Following is the Department’s statements: 'Tn order to avoid placing Broadcast IMusic, Inc., at a competitive disadvantage, the decree will take effect only when similar restraints have been imposed upon the American Society of Composers, Authors and Publishers either by way of consent or litigation. ‘Tn the light of this voluntary action, the Department will withdraw its previously announced prosecution against Broadcast Music, Inc., the National Broadcasting Com¬ pany and the Columbia Broadcasting System. There is no change in the Department's announced intention promptly to proceed criminally against the .-\merican Society of Composers, Authors and Publishers. Nego¬ tiations looking to a settlement in that case ended abruptly in late December. “Under the decree signed Monday, Broadcast Music, Inc., agrees, when the decree become effective, not to engage in the following practices which the Department deems to be in violation of the antitrust laws: “1. BMI agrees not to exercise exclusive control, as agent for any other person, over the performing right of music of which it floes not own the copyright. "2, BMI agrees never to fliscriminate either in price or terms among the users of cop>Tighted music. .Ml BMI compositions will he offered for performance to all users of the same class on equal terms and conditions. "3. BMI agrees to license music on a pay-when-you-play basis. That is. broadcasters will be enabled to buy BMI music either on a per piece or per program basis, if they desire, and in no case will a broadcaster be required to pa>' a fee which is based on programs which carr>' no BMI music. ■'4. BMI will never require a license from more than one station in connection with an> network broadcast. Licenses will be issued to networks or originating stations. “3. Manufacturers of electrical transcriptions, or sponsors, or advertisers on whose behalf such electrical transcriptions are made, will, if they so desire, be able to obtain licenses for the use of such transcriptions for broadcast purposes. "6. BMI agrees never to engage in an all-or-none policy in licensing its music. That is, motion picture exhibitors, restaurants, hotels, radio stations, and all commercial users of BMI music will be able to obtain the right to perform any BMI compositions desired without being compelled to accept and take the entire BMI catalogue. “7. BMI agrees that it will not attempt to restrict the perform¬ ance rights of its music for the purpose of regulating the price of recording its music on electrical transcriptions made for broadcast use,” Neville iMiller issued the following statement in Wash¬ ington after the Justice Department had issued the above statement: “The provisions of the voluntary civil decree signed by BMI today embody both the spirit and intent behind the original organ¬ ization of BMI. BMI was formed after the broadcasters of .America had vainly struggled for ten years to induce the .American Society of Composers, .Authors and Publishers to discontinue its monopolistic practices. These practices compelled broadcasters to buy popular music as a whole, regardless of how little of it the (Continued on page 96) January 31, 1941 — 95