Proposals have been launched in the US for new laws to provide clarification regarding the thin line between download platforms and interactive radio services. The proposals respond to concerns among content owners that certain interactive services run by radio companies may compete with more traditional download sales, and therefore should not be covered by traditional blanket broadcast licences. Both the radio and music industries tend to agree with that point in principle (in both the UK and US, and elsewhere), but the difficulty comes in defining just when an interactive service essentially becomes a download platform.
Negotiations are ongoing between the two sectors, and in the US satellite radio company Sirius has started to reach agreements with the major record companies regarding a new service which enables listeners to grab tracks off their output and listen back to those songs on demand via a special receiver. But US senators Dianne Feinstein, Lindsey Graham and Bill Frist are looking at legislation to protect content owners interests over and above the agreements made between individual media and content companies. The 'PERFORM Act', or the 'Platform Equality And Remedies For Rights Holders In Music Act' would require satellite, cable and internet broadcasters to pay "fair market value" for the performance of digital music, and to use available technology to protect content.
According to the Washington Post, Fernstein says: "The birth of the digital music place has been a boon for businesses and consumers. However, these new technologies and business models have become so advanced that the clear lines between a listening service and a distribution service have been blurred. I believe that the PERFORM Act would help strike a balance between fostering the development of new technologies and ensuring that songwriters and performers continue to be fairly compensated for their works".