Broadcasting (Oct 1931-Dec 1932)

il&©APCA§TD Copyright Evils Aired Before House Group By SOL TAISHOFF Sirovich Calls A.S.C.A.P. "Racketeers," to Draft New Bill; Caldwell, NAB Counsel, Outlines Industry's Position NEW COPYRIGHT legislation designed to protect broadcasting and other interests from the "racketee ring'' tactics of the American Society of Com posers, Authors and Publishers, and to thwart lessor groups seeking tribute for purported copyright ownership, will be drafted by Rep. William I. Sirovich, (D.) of New York, and chairman of the House Committee on Patents. Specifically charging the ASCAP with what he called "racketeering," Chairman Sirovich launched an exhaustive inquiry into its corporate setup and operation preparatory to ! drafting new legislation to modernl! ize the copyright laws. Testimony from the various groups interested in copyright legislation has been heard by the committee during the last month, and two officials of the ASCAP remain to be interrogated before the hearings are closed. In behalf of the organized broadcasters, Louis G. Caldwell, special counsel for the National Association of Broadcasters, testified Feb. 15. He presented the plight of the broadcaster in dealing with the ASCAP, as well as with other copyright units, telling of the iniquities of the existing law and suggesting legislative remedies. Gene Buck Testifies 1 THE ASCAP had its day Feb. 26, with Gene Buck, its president, J leading the usual retinue of cele j brated composers and authors before the committee. Nathan Burkan, chief counsel, and E. Claude Mills, new general manager of the ASCAP, who recently left the Radio Music Co., NBC subsidiary, ; were absent, but will testify at a date to be fixed later. Mr. Burkan is in Cuba recuperating from a recent illness. Flanking Mr. Buck, who bore the brunt of the Society defense, were John Philip Sousa, famed bandmaster and composer. The magic spell which the ASCAP has held over Congress seemed to have broken, however, . under the sharp questioning of And They Say It'll Be More Next Year Copyright, 1932. Drawn for Broadcasting by "The Congressman-Cartoonist" Rep. Sirovich. He drew from Mr. Buck the admission that the ASCAP is "getting justice" from broadcasters in collecting between $900,000 and $1,000,000 per year in copyright fees. Thereby, he evidently committed his organization to a readjustment rather than a blanket increase in copyright tolls from broadcasters under the "new yardstick" being worked out. Chairman Sirovich said dissolution of the ASCAP is not sought. The complaint, he asserted, is the manner in which the organization is operated. He demanded better treatment for the composers and authors, and an "equitable readjustment" of copyright fees down the line. He drew the promise from ASCAP witnesses that the ice cream parlor, barber shop and other minor interests would be excluded from copyright licensing of radios or mechanical reproductions of music for their patrons. ASCAP realizes about $2,000,000 annually, of which about $900,000 comes from radio, $700,000 from motion picture houses and about $400,000 from dance halls, cabarets, etc. Mr. Buck said radio had killed sheet music and phonograph record sales, and thereby had curtailed income. Mr. Romberg also stressed these points, and said that when television becomes a practical medium, all that will be left will be the income from what goes over the air in voice and pictures. Mr. Buck testified he now receives $35,000 a year in salary, but March 1, 1932 • BROADCASTING last year got $25,000. Prior to that he said he drew no salary for 14 years as ASCAP president. Mr. Burkan, he declared, draws $25,000 and Mr. Mills will draw $50,000 as against his $74,000 from Radio Music Co. and its associates. Recommendation that the two cent per record fee be stricken from the statutes and that composers be left to bargain with RCA-Victor, Columbia, Brunswick and other phonograph record companies on each composition, was made by Mr. Buck. W. W. Clark, of RCA-Victor, agreed. In presenting the broadcaster's case, Mr. Caldwell was introduced by Harry Shaw, NAB president. Describing the copyright problem as one of the most vital affecting broadcasting as well as the radio public, Mr. Caldwell told the committee that no person or combination should have the power under the law to nullify the license of a station through assessment of fees which will "stifle this new industry and cripple the service which it is giving to the public." Congress should not be misled in its consideration of copyright legislation by the "highly exaggerated stories of the profits a few stations are said to be making," the NAB counsel declared. He pointed out there is a great disparity in the economic condition of the 600 stations and that an outlet in New York City presents a far different economic picture from that of a station in the sparsely settled Rocky Mountain area. "The truth is," he said, "and the information now being gathered by the Radio Commission will bear this out, that comparatively few stations have made substantial profits in the past, and the great majority of stations are in no position to be subjected to heavy burdens of expense for research in copyright matters or for defending litigation for alleged copyright infringements which are innocent and yet impossible to guard against in the present state of the law." The broadcaster has no quarrel with the claims of the author and composer as presented at the current hearings, Mr. Caldwell asserted, and, subject to proper safeguard, he agrees in principle with their demands. Moreover, he declared, the broadcaster is not seeking the privilege of broadcasting copyrighted works without payment, despite charges to the contrary, but recognizes that he is under obligation to pay a "reasonable-fee". Mr. Caldwell explained that the Page 5