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SCHUETTE SUBMITS PROPOSAL TO MILLS
Acting under the "absolute powers" conferred on him by the St. Louis Convention, Oswald F. Schuette, director of NAB Copyright Activities, has submitted to E. C. Mills, general manager of the American Society of Composers, Authors and Pub¬ lishers, a revised copyright contract limiting the royalty to a percentage of the advertising revenue received from programs using ASCAP music.
In the conferences which preceded the submission of the new proposal, Mr. Mills repeated his admission that a contract so restricted constituted a better measurement of the royalty than the levy of a percentage on the entire income of broadcast¬ ing stations. However, he declared that the ASCAP Board of Di¬ rectors has repeatedly gone on record as opposed to a change in the contract and held out little hope that the Board would be induced to change its mind.
"While it seems difficult to believe that the ASCAP di¬ rectors will cling to so shortsighted a policy, in the face of the unanimous decision taken by the broadcasting industry at St. Louis, it is not at all unlikely that the industry will have to find some way of enforcing its right to a reasonable contract", declares the NAB News Bulletin. "The situation has already been discussed with members of both houses of Congress and it is therefore likely that this subject will be an important topic in the Winter sessions, despite the fact that the present Con¬ gress dies on March 4, 1933.
"Apparently the broadcasters have been diligent in dis¬ cussing the situation with their Congressmen and there is no doubt that the latter will know more about the necessity of protect¬ ing the broadcasting industry against copyright extortion. At the same time, other victims of similar threats of copyright ex¬ tortion have discovered that their interest can be protected only by joint action. The newest action in this line has re¬
sulted from the demand by ASCAP for three times the previous re¬ venues obtained from amusement parks. These institutions, as well as dance halls and other places of entertainment, find them¬ selves at the mercy of ASCAP because there has been no concerted effort to create a pool of music on which there would be no fees for public performance.
"This is to emphasize the importance on the part of the broadcasters of undertaking the immediate creation of such apool and doubtless this will be one of the contributing mo¬ tives to speeding up action by the Board of Directors of the NAB on the proposal for a radio program foundation endorsed at the St. Louis convention."
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