Tennessee Republican Senator Fighting Internet Radio Fairness Act

Sen. Bob Corker Says IRFA Benefits Pandora, Hurts Music Industry
Republican Tennessee Senator Bob Corker is seeking to drum up oppostion to the Internet Radio Fairness Act (IRFA). He's calling on his colleagues to oppose the measure, which he says will mainly benefit Pandora to the detriment of the music industry. In a letter, currently being circulated, the Senator, whose constituents include representatives from the country music hub of Nashville, writes that "while the stated purpose of the IRFA is to achieve parity, this bill would interfere with property rights and in effect force America property owners and creators to provide a subsidy to digital radio service, primarily Pandora." The Internet Radio Fairness Act, introduced by Sen. Ron Wyden (D-OR), proposes to place Internet radio services on the same royalty-setting standard as cable and satellite radio services, such as SiriusXM, so the royalty fees paid by each radio platform are level with one another. Corker says, "It is incumbent on digital radio companies to develop and implement a business model that provides the revenue they need, rather than expect government to reduce their costs." He continued, "the standard for establishing rates for music or any American product should be based on marketplace benchmarks, not a below-market standard that favors one side." Wyden has said that the current royalty rules for Internet radio are obsolete and favor the recording industry over Internet radio stations. If Pandora and other webcasters paid lower royalty fees, Wyden contends, recording artists and musicians would earn more money because there would be a larger market for Internet radio stations, But in his letter Corker writes, "We all want Pandora -- and Internet radio -- to succeed and grow. But it can do so without legislation and without harming the artists it relies on," Corker writes. "A consumer-driven marketplace has been a hallmark of innovation on the Internet and the same market forces should decide the value both of competing music delivery services and the music content they deliver." Corker concludes, "I agree that we should be working toward parity in the way royalties are determined. However, parity should be based on free market principles and achieved in a comprehensive way that levels the playing field for all copyright holders and across all mediums for music. Please join me in opposing S. 3609."