Howard Berman: “Section 4 of this bill requires that agents directed by the copyright office to distribute webcasting royalties must…”

“Section 4 of this bill requires that agents directed by the copyright office to distribute webcasting royalties must make direct payment of those royalties to featured and nonfeatured recording artists and musicians. Section 4 also allows such agents to deduct their administrative and other reasonable expenses from the royalties they distribute. These provisions are somewhat unusual, so I want to confirm my understanding of their import with the distinguished chairman. It is my understanding that both provisions simply codify what is the current practice in the marketplace. Copyright office regulations require direct payment of royalties for the years 1998 to 2002, and the only distributing agent currently designated by the copyright office has contracted to make direct payments. Further, royalty recipients have agreed to allow that distributing agent to deduct its expenses from royalties. Is it the chairman's understanding that these provisions simply codify those current practices?”