|
Music hearing draws rock stars, crowds WASHINGTON, April 3 (UPI) -- Rock stars Don Henley and
Alanis Morissette spoke in favor of the popular song-sharing service Napster
while some record industry leaders criticized it before a Senate hearing
Tuesday on online music entertainment. The music executives railed against Napster at the Senate
Judiciary Committee hearing, calling the company's policies "cybershoplifting."
Hilary Rosen, president of the Recording Industry Association of America,
said it was hard for other media providers to make a living "when
Napster gives songs away for free." While media conglomerates dubbed Napster's service "piracy,"
Morissette instead called it publicity that could help many musicians
survive. "Most recording artists never receive royalties past their
initial advance," she explained. "Free Internet distribution
allows the artist to aggregate an audience ... this in turn allows that
artist to generate compensation through other outlets, such as touring
and merchandise." Henley, co-founder of the Recording Artists Coalition
and former Eagles lead singer, asked officials to protect Napster, which
is working on becoming a fee-based service that pays artists and companies.
"Seventy percent of people surveyed said that they were willing to
pay for this type of service," Henley noted. Entertainment giant Bertelsmann AG has invested $50 million
in Napster, and Ken Berry, head of the recorded music division for EMI,
the world's third largest music corporation, told senators his company
was willing to license its song catalog to Napster. However, a new online music subscription service named
MusicNet from media conglomerates AOL Time Warner, EMI and Bertelsmann
AG may soon leave Napster in the dust. Richard Parsons, co-chief operating
officer for AOL Time Warner, said the three multinational corporations
are teaming up with Internet media company RealNetworks to provide the
fee-based service. Parsons told the senators that the team is currently testing
the technology that will make MusicNet work. He said that the service
may be up and running for the public by late summer or early fall. Parsons added, however, that this timetable presumed copyright
and reimbursement arrangements went smoothly, which have proven enormously
complex up to now. Sen. Orrin Hatch, R-Utah, who chaired the hearing,
said he was willing to hold weekly meetings on online entertainment until
a working business model was hammered out. He recommended the debate could
benefit from "a lame-brained Hatch idea" -- the orphan drugs
bill. Orphan drugs treat rare disorders. Pharmaceutical companies
do not want to spend money on researching such drugs because the small
customer base means small financial returns. The bill provided a tax incentive for orphan drugs and,
Hatch said as a result there are now some 200 orphan drugs where there
was only a handful before. If online entertainment followed a similar
model, the senator said business could flourish. The meeting drew hundreds of music and Napster fans that filled the Senate hearing room to overflowing. The senators were not untouched by the aura of celebrity -- Sen. Patrick Leahy, D-Vt., took a snapshot of Don Henley while the former Eagles' lead singer was speaking. Later during the hearing, Leahy expressed his appreciation for the Eagles' song "Hotel California," citing it as one of his favorites. |