photo by Rusty Hodge
On Monday July 30 – Tuesday July 31, 2007 I had the honor of travel to the city where i was born, with Ted Leibowitz (BAGeL Radio), Elise Nordling (Soma FM) & Rusty Hodge (Soma FM) with purpose and passion. Armed with packets of information and appointments both which were fully organized by my new friend and a woman for which i have much admiration, the amazing Elise Nordling. Prior to our visit Elise spent countless hours calling the offices of more than 100 congress members & staff members, senators, committee members and chiefs of counsel so that upon arrival, we were efficient, prepared, and most importantly: confident. Because of Elise’s tenacity, passion and experience we penetrated the epicenter of USA Government with concise information, leaving behind an impression with people ranging from Chief Counsels & Congressmen to the folks at Sound Exchange.

Upon arrival we attended one meeting together, and then broke into groups. I am not a small webcaster. I was along to help explain the choke hold on promotions of independent music resulting from the CRB ruling and how it affects more than the industry of webcasting, but also the independent music industry as a whole. Artists both independent and major label bound are on an even playing field in the webcasting environment. The market is normalized – therefore providing opportunity for art of all genre to be heard. Commerce ensues.

I watched Ted, Rusty and Elise explain to chief counsels and legislative assistants that while Sound Exchange is claiming to be offering a settlement to small webcasters, Soma FM & BAGeL Radio have not only not heard from SoundX, but they have yet to get a return a phone call. Even my cat knows that the lack of communication is not indicative of any notion or efforts toward settlement.

Small webcasters are now operating in a gray area. Congress wants Sound Exchange to offer a fair settlement. HR 2060 is flawed. And where do artists fit into all of this? the artist and their team are, by default, navigating a legal battle which may or may not prevent them from exposure to a willing audience of potential consumers, and the leading providers of this exposure are facing lengthy battles for the right to encourage a willing audience to purchase product from an artist. From the artist representative/ music marketing/ manager/ indie label perspective, this “gray area” teeming with dollar signs is a very uncomfortable sphere in which to involve product. The copyright owner makes more money from the exposure, but is forced to collect money (now retroactively even though it was already paid) from the purveyors of that very promotion which would otherwise enable them to sell more music for a longer period of time. In other words – the artist makes more money when these rates are normalized.

Small Webcasters WANT to pay artists. yes, even the listener supported stations WANT to pay and DO PAY NOW – but CAN’T pay when they are bankrupt. And after bankruptcy, ***there is no more money to be made at all!!! Come on, people!!!***

::sigh::

we also found ourselves explaining that while sound exchange is the only company to issue payments, they only actually have 20,000 artists on board. And yes, it’s obvious to you and me, but we explained that there are many more musical artists than a meager 20,000. We touched on issues of rights disputes, territory rights, indie label promotions (and how terrestrial radio is dead to us and THAT IS FINE with us, because we have the internets). And so on. And so forth.

Music industry education from indies is needed on the hill. And while multiple Representatives and Senators have gold and platinum records hanging on the wall, they are without extensive multi-perspective and reality driven knowledge about how the industry itself is successfully adjusting and will successfully adjust to the change in medium from sheet music, to vinyl, to cassette, to cd, to zeros and ones.