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WINTER 2008NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES®
ADVANCING THE RIGHTS OF THE MUSIC COMMUNITY®
GRAMMYs on the Hill Finale: Sen. Ted Kennedy, Quincy Jones and Brett James perform Jones’ “We Are The World” Photo: Douglas A. Sonders/WireImage.com
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CONGRESS EMBRACES MUSICAT RECORDING ARTS DAYCONGRESS EMBRACES MUSICAT RECORDING ARTS DAYRecording Academy advocacy day puts creators’ message center stage
From the Speaker of the House to afreshman congressman with hit records to his name, Congress could not miss themessage of music at Recording Arts Dayon Capitol Hill on Sept. 5. The musiccommunity’s day on Capitol Hill, conceivedand annually produced by The RecordingAcademy, brought nearly 150 music professionals to Washington for a day of music advocacy and music making.
In addition to the music professionalsparticipating, 20 organizations representingevery aspect of the music communityserved as co-hosts of the day’s events,including American Association ofIndependent Music, American Federationof Musicians, American Federation ofTelevision and Radio Artists, ASCAP,BMI, Country Music Association, ChurchMusic Publishers Association, GospelMusic Association, GRAMMY Foundation,and the Harry Fox Agency.
Also hosting were the Latin Academyof Recording Arts & Sciences, MusicManagers Forum — US, NashvilleSongwriters Association International,National Association of RecordingMerchandisers, National Music Publishers’Association, Producers & Engineers Wing,Recording Artists’ Coalition, RecordingIndustry Association of America, Rhythm& Blues Foundation, SESAC, SongwritersGuild of America, and SoundExchange.
Lobbyists For A DayThe morning session was designed to
brief the music community on key musicissues facing Congress in order to betterequip participants to meet with their
representatives. A panel of experts,including attorneys Bill Hart and MontserratMiller, as well as the RIAA’s Mitch Glazierand NMPA’s David Israelite, discussedcritical issues such as user-generatedcontent, copyright enforcement, and cultural exchange.
Then, to better understand how toengage in a productive meeting with amember of Congress, the participantswent right to the source. CongresswomanLinda Sánchez (D-Calif.) kept the moodlight and delighted the audience with hertips on how to interact with legislators.
The morning’s keynote was given bythe chairman of the National Endowmentfor the Arts, Dana Gioia, who encouragedthe music makers in the room to keepculture alive and to help the NEA makethe arts part of every American’s life.
The next stop for the group was thegrand Library of Congress for an eventand tour, a first-time visit for RecordingArts Day. In honor of The RecordingAcademy’s 50th Celebration, and to recognize its and the Library’s mission of
music preservation, a plaque was presentedby Academy President/CEO Neil Portnowto the Librarian of Congress, Dr. JamesBillington. To symbolize both organizations’commitment to music preservation, theplaque contained an original LP and sheetmusic of Bob Wills’ “New San AntonioRose.” The recording has been inductedinto both the GRAMMY Hall Of Fame andthe Library’s National Recording Registry.
Then, to bring that song to life, RayBenson of Asleep At The Wheel (currentlystarring in a play about the legendaryWills) performed “New San AntontioRose” on acoustic guitar.
An informal lunch reception offeredmembers of Congress and the musicindustry a chance to mingle. “It was awonderful opportunity to talk to a con-gressman from my state one-on-one insuch an informal setting,” commentedTexas Chapter Board member MaureenDoherty after meeting with Rep. CharlesGonzalez (D-Texas). Other members ofCongress in attendance included Reps.Marsha Blackburn (R-Tenn.), HowardCoble (R-N.C.), Stephanie Herseth-Sandlin(D-S.D.), Adam Schiff (D-Calif.), and HenryWaxman (D-Calif.).
Music Fills Halls Of Congress AsAcademy Members Visit Capitol HillAcademy’s Recording Arts Day connects music and congressional leaders
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Phil Ramone (left) and Jimmy Jam (right) present theGRAMMYs on the Hill award to Sen. Ted Kennedy
Recording Arts Day advocates at the Library of Congress
Sen. Orrin Hatch (left, at head of table) listens to the words — and music — of The Academy’s leadership
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Bringing Down “The House” In a packed hearing room transformed
into a concert hall, the “GRAMMYs at 50”celebration commenced, hosted by theGRAMMY Foundation. Using live perform-ances by BeBe Winans and Keb’ Mo’, aswell as historical GRAMMY clips, the eventshowcased the Foundation’s efforts to
preserve music on film and living historiesof great artists. In an “only at RecordingArts Day” moment, Winans called up the “GRAMMY Congressional Band” to join him, Keb’ Mo’ and Ray Benson in “America The Beautiful.” The band, an informal group of legislators who support music issues, included two newmembers who are no strangers to themusic business, former Orleans bandmember John Hall (D-N.Y.) and musicianPaul Hodes (D-N.H.). Joining them wereband veterans Reps. Mary Bono (R-Calif.),Connie Mack (R-Fla.), Stephen Cohen (D-Tenn.), John Lewis (D-Ga.), and AdamSchiff (D-Calif.).
During the final panel of the day,“Congressional Outlook For MusicIssues,” Reps. Mary Bono and StephenCohen shared with attendees some ofthe important concerns Congress will be addressing this coming session. The discussion was moderated by GreenbergTraurig’s Diane Blagman, The RecordingAcademy’s chief legislative consultant.
GRAMMYs On The HillThe closing dinner was a chance for The
Recording Academy, the music community,and members of Congress to honor thosewho have improved the environment formusic. This year’s honorees were Sen.Edward Kennedy (D-Mass.), Rep. MarshaBlackburn (R-Tenn.), Quincy Jones andGRAMMY Foundation Signature SchoolChesnee High School music department.
The evening began with a surpriseperformance of an amazingly original version of the national anthem performedby the Godfather of Go-go, Washington,D.C.’s own Chuck Brown, joined by Paul Reed Smith, Ralph Perucci and Gary Grainger.
Television and radio personalityRobert Aubrey Davis kept the eveningmoving as host, beginning with a toast incelebration of The Recording Academy’s50th birthday. Presenters and speakersincluded hit songwriters Desmond Childand Steve Bogard, BMI’s Fred Cannon,The Recording Academy’s Daryl Friedman,
Rep. Bob Ingliss (R-S.C.), GRAMMYFoundation Board member Rusty Rueff,the GRAMMY Foundation’s DanaTomarken, Jimmy Jam and Phil Ramone.
Performing were John Rich (of Big &Rich), BeBe and CeCe Winans, and song-writer Brett James, who performed the hithe cowrote for Carrie Underwood, “Jesus,Take The Wheel.”
Recording Academy President/CEONeil Portnow gave the keynote address,unveiling the GRAMMY Music & Tech-nology Principles (see page 16).
The evening ended as it began, with a once-in-a-lifetime musical performance.Rich called up honorees Sen. Kennedy,Rep. Blackburn and Jones, as well asBenson, James and Jimmy Jam to singthe Quincy Jones-produced classic song,“We Are The World.”
That finale perhaps summed up theentire day — music-makers and policy-makers joining together to create harmonyand, as they sang, “make the world a better place.”
Recording Arts Day Continued from page 3
BeBe Winans (far right) conducts the “GRAMMY Congressional Band” with (standing, from left) Reps. Mary Bono,Connie Mack, Adam Schiff, John Lewis, Steve Cohen, John Hall and Paul Hodes. Guest artists (seated) Ray Bensonand Keb’ Mo’ accompanied the band
Host organization representatives David Israelite (NMPA), Linda Lorence-Critelli (SESAC), Jim Donio (NARM),John Styll (GMA), Mitch Glazier (RIAA), Steve Bogard (NSAI), Neil Portnow (The Recording Academy), KarenSherry (ASCAP), Fred Cannon (BMI), Rick Carnes (SGA), Richard Burgess (MMF-US), Elwyn Raymer (CMPA),Neeta Ragoowansi (SoundExchange), and Tom Lee (AFM)
Librarian of Congress James Billington receives aplaque from The Recording Academy leadership.(l–r) Neil Portnow, Billington, Ray Benson, QuincyJones, Jimmy Jam and Phil Ramone
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Sen. Richard Durbin (left) hears from music advocates (seated, fromleft) Neil Portnow, Terry Lickona and Quincy Jones
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Paul Reed Smith, Chuck Brown, Ralph Perucci and Gary GraingerGreenberg Traurig’s Diane Blagmanmoderates the congressional panel
John RichRep. Marsha Blackburn accepts her award from NSAI’s Steve Bogard (left)and BMI’s Fred Cannon
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NEA Chairman Dana Gioia andAcademy Chair Emeritus Terry Lickona
Recording Arts Day 2007
Tammy Genovese of the Country Music Association with Rep. Howard Coble
Rep. Stephanie Herseth-Sandlin with The Academy’s Neil Portnow
Rep. Joe Crowley (left) and Rep. Paul Hodes compare bids at the auction
Desmond Child
Rep. John Conyers shares a laugh with friend Quincy Jones (left)Ray Benson and Keb’ Mo’
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Chicago Chapter Fights For Arts EducationEvent initiates discussion between members and state legislators
Rick Nielsen (Cheap Trick, Chapter Governor), Peter Strand (Chapter Vice President), Michael Madigan (Illinoisstate Speaker of the House), Shirley Madigan (chairwoman, Illinois Arts Council), Michael Freeman (ChapterTrustee), and Tera Healy (Chapter Executive Director) Photo: Barry Brecheisen/WireImage.com
With one musical voice, ChicagoChapter members conveyed to statelegislators and officials the importanceof arts education programs. On May 2 inSpringfield, Ill., the Chicago Chapter, inpartnership with the Illinois Arts Council,hosted a reception to promote theimportance of continued funding formusic education in Illinois state schools.
Chapter members, Chapter Boardmembers Lyndia Johnson, Rick Nielsenand Rachel Barton Pine, Chapter PresidentAlice Peacock, and Chapter ExecutiveDirector Tera Healy delivered their message to Illinois education officials,including Illinois state Speaker of theHouse Michael Madigan, that educationin the arts cultivates creativity and innovation — vital for success in today’scomplex and fast-changing economy.
During the evening, Academy members interacted with other importantcultural organizations, including ArtsCouncil Executive Director Terry Scrogrumand representatives from the Illinois Music
Educators Association and the IllinoisState Board of Education.
Singer/songwriter Alice Peacockdemonstrated firsthand what music pro-grams can do and wowed the audiencewith her musical talent. Peacock alsohighlighted to the group the importanceof music education, noting that schoolswith music programs have significantlyhigher graduation and attendance rates.
Peacock’s parting words can serve asmotivation for involvement in all statesand at the national level: “I want toencourage all of you to look for oppor-tunities to increase arts education inpublic schools. We owe it to our childrento give them every experience andopportunity available to them, to allowthem to excel not only in the arts and ineducation, but also in life.”
The Academy will work with mem-bers of Congress to ensure that artseducation does not get pushed aside as Congress revisits the No Child LeftBehind Act.
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Recording Arts Day 2007 Continued from page 7
Recording Arts and Sciences Congressional Caucus Co-ChairsRep. Mary Bono and Majority Leader Rep. Steny Hoyer
Rep. Adam Schiff (second from left) meets constituents The Academy’sDavid Grossman, attorney Jay Cooper and TAG Strategic’s Ted Cohen
The Academy’s Wayne Zahner and Neil Portnow withRep. Henry Waxman
Rep. Linda Sánchez
CeCe and BeBe Winans
Quincy Jones and Speaker of the HouseRep. Nancy Pelosi
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Putting MusicFIRST, CoalitionFights For Artist RoyaltiesAcademy seeks radio performance right
On June 14, The Recording Academy,along with other major music organiza-tions, launched the musicFIRST Coalitionto begin the campaign to secure a terrestrial radio performance right forsound recordings.
Sound recordings are the only copy-righted work that can be performed withoutcompensating the creator or copyrightowner. Therefore, over-the-air radio stationscan play any record on the air withoutpaying the artist who created it. In everyother developed country in the world(and domestically on cable, satellite radioand the Internet), artists are compensatedfor the playing of their records. MusicFIRST(Fairness in Radio Starting Today) seeksto end this unfair exemption for corpo-rate radio.
“As we celebrate 50 years of theGRAMMY Awards, it is important to notethat artists have sought fair compensationfrom radio for each of those 50 years,”said Neil Portnow, President/CEO of TheRecording Academy. “Three years ago
in Washington, The Academy called foraction at its GRAMMYs on the Hill event.Today, with the launch of the musicFIRSTCoalition, that effort moves into high gear.
“And make no mistake, with ourmembership of both artists and songwriters,we will not allow the discussion to turn intoa zero-sum game, pitting one against theother. Current songwriter royalties shouldand will be protected. A new performanceroyalty for artists must be in addition tothat paid to writers.”
Following the creation of a performanceright, the creators of sound recordingswould begin to collect hundreds of millionsof dollars in royalties, as well as royaltiesfrom international airplay. Currently, royalties collected abroad for airplay of American artists are not shared withthose artists since the United States doesnot have a reciprocal right.
Months before the official launch ofmusicFIRST, The Recording Academyhosted a briefing in Los Angeles withleading members of Congress and the
music industry, including singer Patti Austin.The discussion was designed to advancethe campaign and educate key legislatorsabout the performance royalty issue.Members of Congress in attendance wereSen. Bob Corker (R-Tenn.) and Reps. JoeCrowley (D-N.Y.), Linda Sánchez (D-Calif.),and Maxine Waters (D-Calif.), as well asCommissioner Jonathan Adelstein of theFederal Communications Commission.High-level congressional staff were alsopresent to provide valuable input: DerrickBrent from the office of Sen. Barbara Boxer,Bruce Cohen of the Senate Judiciary Com-mittee, Alan Hoffman from the office ofSen. Joe Biden, Gene Smith from theoffice of Rep. Howard Berman and ShannaWinters of the House Judiciary Committee.
The launch of the coalition saw a flurryof activity in Washington, including congressional and media meetings withlegendary singer Martha Reeves, formerWashington, D.C. Chapter board memberRob Garza of Thievery Corporation, andrepresentatives from each coalition partnerorganization. Additionally, more than 100artists have joined the “Founders List” ofthe coalition, including Recording Academyleaders Cathy Fink, Jimmy Jam, Dave Koz,Keb’ Mo’, Nitty Gritty Dirt Band, ThieveryCorporation, Gerald Veasley and SuzanneVega, among others.
Chaired by Rep. Berman (D-Calif.),one of Congress’ most consistent sup-porters of music creator rights, the HouseSubcommittee on Courts, the Internet,and Intellectual Property held a hearingon July 31 to address the radio royaltyissue. At the request of The RecordingAcademy, legendary recording artistsSam Moore and Judy Collins testifiedon behalf of artists’ rights. Also support-ing the royalty for artists were Register
of Copyrights Marybeth Peters and Rep.Paul Hodes (D-N.H.). Opposing paymentsto artists was Charles Warfield, representingthe National Association of Broadcasters.
Moore, who began his career 45years ago as part of the duo Sam &Dave, noted, “While my records [such as“Soul Man” and “Hold On, I’m Comin’”]continue to bring joy to music loversworldwide, and continue to help theradio business become a $20 billionindustry, I struggle to make a living.These recordings are my legacy. Theydeserve to be protected with a perform-ance right.”
In addition to The Recording Academy,which holds a seat on the coalition’sexecutive committee, the musicFIRSTorganizations include American Associationof Independent Music, AmericanFederation of Musicians, Christian MusicTrade Association, The Latin RecordingAcademy, Music Managers Forum-USA,Recording Artists’ Coalition, RecordingIndustry Association of America,SoundExchange and the Vocal GroupHall of Fame.
FCC’s Jonathan Adelstein, Rep. Joe Crowley, Rep. Linda Sánchez, Daryl Friedman, Patti Austin and Sen. BobCorker at The Academy’s briefing in Los Angeles Photo: Alexandra Wyman/WireImage.com
Martha Reeves meets Rep. John Conyers during themusicFIRST launch
At a gathering once thought impossi-ble, The Recording Academy convenedCEO-level executives from both themusic and technology sectors for anunprecedented summit to address criticalissues affecting both industries.
The Music & Technology LeadershipRetreat (part of the GRAMMY IndustryRoundtable series) was held at GeorgeLucas’ Skywalker Ranch on July 19 and20. The retreat was a result of ongoingefforts by The Academy to affect a “truce”between the music and technology indus-tries, a policy first proposed in 2006 byAcademy President/CEO Neil Portnow atWashington’s GRAMMYs on the Hill dinner.
Portnow’s vision was realized somemonths later as presidents, CEOs andother high-level business leaders dedicated
significant time to this first-of-its-kind discussion. Executives from digital musicservices such as Rhapsody, Napster,eMusic, SNOCAP and Pandora; technologymanufacturers such as Microsoft andSanDisk; retailers including Best Buy andAmazon; major and independent musicpublishers; and all four major music labelscame to Skywalker Ranch for the retreat.Additionally, accomplished music creatorsRonnie Dunn (of Brooks & Dunn), pro-ducer/songwriter Jimmy Jam, Leslie AnnJones of Skywalker Sound, and producerPhil Ramone took part in the retreat. Theretreat was facilitated by music technologyguru Ted Cohen and digital entertainmentattorney Bobby Rosenbloum. Antitrustattorney Stuart Plunkett also attended.The retreat was produced by The
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GRAMMY Music & TechnologyLeadership Retreat Builds ConsensusUnique summit at Skywalker Ranch produces guiding principles
Academy’s Advocacy department and itsProducers & Engineers Wing.
Many of the executives were meetingface-to-face for the first time, and theyengaged in honest and open dialogueabout the current challenges and potentialsolutions existing in the music-technologymarketplace. In addition, the participantscontributed to several guiding philosophies,which formed the basis of The Academy’s“GRAMMY Music & Technology Principles.”
The principles were announced byPortnow before an audience of congres-sional and music industry leaders at the 2007 GRAMMYs on the Hill dinner (see “Sound Policy” on page 16 for more information).
Retreat participant Rusty Rueff ofSNOCAP noted, “The retreat was a successful and worthwhile endeavor forthose of us working to advance the legaldigital music marketplace. The RecordingAcademy is to be commended for theirefforts to bridge the gap between twoindustries that are so interdependent andhave so much at stake.”
Legislation and litigation will no doubtcontinue, but leaders of the music andtechnology businesses now have a frame-work for building consensus, and improvingthe marketplace for music makers andmusic fans.
Standing, l-r: Daryl Friedman, Richard Perna, David Pakman, Ted Cohen, Leslie Ann Jones, Joe Kennedy, Rusty Rueffand Chris Gorog. Seated, l-r: Ann Sweeney, Phil Ramone and Neil Portnow
MUSIC & TECHNOLOGY LEADERSHIPRETREAT PARTICIPANTS
Gary Arnold, senior vice president of entertainment,Best Buy Corporation
Pete Baltaxe, director of worldwide digital music,Amazon.com
Rio Caraeff, executive vice president of Elabs,Universal Music
Ted Cohen, managing partner, TAG StrategicMichael Downing, CEO, GoFishMaureen Droney, Executive Director of the Producers
& Engineers Wing, The Recording AcademyRonnie Dunn, artist/songwriter, Brooks & DunnDaryl Friedman, Vice President of Advocacy &
Government Relations, The Recording AcademyChris Gorog, chairman & CEO, NapsterThomas Hesse, president of global digital business,
Sony BMGJimmy Jam, producer/songwriter, Flyte TymeLeslie Ann Jones, director of music recording &
scoring, Skywalker SoundJoe Kennedy, CEO, PandoraMichael Nash, senior vice president of Internet strategy
& business development, Warner Music GroupDavid Pakman, president & CEO, eMusicRichard Perna, co-chief executive officer,
Evergreen CopyrightsNeil Portnow, President/CEO, The Recording AcademyPhil Ramone, producer, Phil Ramone Inc.David Renzer, chairman & CEO, Universal
Music PublishingBobby Rosenbloum, entertainment attorney,
Greenberg TraurigRusty Rueff, CEO, SNOCAPDaniel Schreiber, senior vice president of audio/
video, SanDiskDaniel Sheeran, senior vice president of music & video,
RealNetworks Inc.Ann Sweeney, executive vice president, Warner/ChappellChip Wood, senior director of business development
& strategy, MicrosoftBarney Wragg, global head of digital music, EMI
David Renzer with Chris Gorog Neil Portnow, Ronnie Dunn, J.W. Dunn and Bobby Rosenbloum
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Insurance Parity Bill Championed ByMusiCares Passes Both House AndSenate Committees
Mental health parity made it throughits checkups when HR 1424 (Paul WellstoneMental Health and Addiction Equity Actof 2007) was cleared by the House Energyand Commerce Committee on Oct. 16 bya vote of 32–13. The bill also receivedapproval from the House Ways and MeansCommittee on Sept. 26, approved by avote of 27–17, and the Education andLabor Committee by a vote of 33–9. Thebill now needs to be considered by thefull House. The Senate passed its versionof the legislation, S 558, on Sept. 18 by a voice vote. The House Mental HealthParity bill is more comprehensive thanthe Senate measure. If the bill clears the House, the differences between theHouse and Senate versions will need tobe reconciled in conference committee.
Progress Made On “White Spaces” IssueAn FCC study released July 31 con-
firmed that concerns raised by a coalitionof music organizations, including TheRecording Academy, with regard to newdevices intended to use wireless “white
spaces” are valid, resulting in slowedprogress for three Academy-opposedbills. The bills would seek to rush approvalfor new portable consumer devices thatwould use the wireless spectrum currentlyused by the concert industry for mics and monitors. The Academy and manyother music organizations oppose thebills because of concerns that new hand-held devices would cause interference at live concerts.
Lyrics Make Front-Page NewsOn Sept. 25, the House Subcommittee
on Commerce, Trade and ConsumerProtection heard testimony from 13 witnesses on how, as Universal MusicGroup’s Doug Morris put it, the “B-, H-and N-words” in hip-hop lyrics may impactsociety. Warner Music Group CEO EdgarBronfman Jr. testified that Warner complieswith labeling restrictions, but does not cen-sor the music they release. Rapper Percy“Master P” Miller said that he wants to bea part of the solution and not the problemgoing forward. Rep. Marsha Blackburn (R-Tenn.) commented that although shemay think that some lyrics are “filth,” regulating content is a slippery slope.
Advocacy Roll CallPolicy briefs for the music community
More Information @ GRAMMY.comGRAMMY.com is the best real-time source of information on Recording Academyinitiatives and news, as well as up-to-the-minute stories affecting the industry, technology and artists. Go to www.grammy.com/news and click on the “Advocacy”and “ArtsWatch” links for the latest stories, and www.grammy.com/action fortools to make your opinions heard on Capitol Hill.
Recording Academy MembersTestify Before CongressJudy Collins, Cathy Fink and Sam Moore speak out for artists’ rights
Artists are in front of audiences for aliving, but recently, leading Academymembers appeared before a differentaudience — members of Congress.Cathy Fink, a Recording Academy Trusteefrom Washington, D.C., and GRAMMY-winning recording artist, testified beforethe U.S. House Committee on SmallBusiness on June 28. Her testimony, supporting the fair market rates for musicset by a copyright royalty body, followedan e-mail campaign by more than 3,000music creators who petitioned Congress to support the rates.
Judy Collins and Sam Moore, Academymembers and GRAMMY-winning artists,testified for a Subcommittee on Courts,the Internet, and Intellectual Propertyhearing titled “Ensuring Artists FairCompensation” on July 31. The artists
testified in favor of ending the terrestrialbroadcaster exemption (allowing over-the-air radio stations to use sound record-ings without compensation to artists).The hearing was a strong start for themusicFIRST campaign to protect musiccopyrights (see story on page 10).
Academy members Sam Moore (left) and Judy Collins (right) testify before Congress on behalf of artist royalties.Charles Warfield (center), representing the National Association of Broadcasters, opposed the artists
Recording Academy Trustee Cathy Fink testifiesbefore Congress about the value of music
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How does it feel to turn 50? For somein the room, it may be a fond memory.For The Recording Academy and theGRAMMY Awards, on our 50th anniversary,we’re using the tagline: “For some it’s amilestone — but we’re just getting started.”
To a large extent, what that means tous is looking ahead to the next 50 years,and that includes preparing to turn overthe reins to the next generation. And forthat next generation of music makers,creators, executives, legislators and fans,these next 50 years will define the futureof the music industry and, indeed, thefuture of our entire cultural landscape.
As I travel, I meet students from ourGRAMMY Signature Schools from allacross the country and I can tell you, theymake me very optimistic about the futureof the music industry. They are bright,passionate and, who knows, maybe oneof them even dreams of growing up tobe a music lobbyist.
For all these reasons, I want to partic-ularly recognize our guests from ChesneeHigh School’s music department, whomyou just met. To them I say, keep up thegreat work, use this grant and recognitionwisely, and know that the current generationof music leaders is relying on you to carrythe future of our business to even greaterheights. As I add my personal congratu-lations to each of our GRAMMYs on the Hill honorees for their impressiveachievements that have allowed all of ourlives to be enriched through music, I’d liketo direct my comments tonight to musicstudents everywhere, and particularly tothe music students of Chesnee High Schooland the students from all of our GRAMMY
Signature Schools, each of whom willreceive a podcast of these remarks.
I know to many of you in high schoolmusic programs, it looks like we don’t havea clue. Technology is changing faster thanwe can manage it, and you — the youngmusic lovers — have mastered it far betterthan we have. It may even appear as ifwe are fighting new technologies, tryingto hold them back. And I can certainlyunderstand how it might look that way.
But let me assure you that every musicindustry leader in this room, every memberof Congress here tonight, every technol-ogist present, and every legislative stafferhere with us, is working as hard as theycan to prepare for and adjust to the newworld of music.
We may not always get it right. But ouroverriding concern is a noble one — pro-tecting the intellectual property of musicmakers and copyright owners so that musiccreation can and will continue. And if itappears that we are treading too slowlyinto the new world, it is because that
concern is paramount in our minds andcertainly is not easy or simple to address.
You should also know that technologyentrepreneurs and music industry leadersare working together each day to solvethese issues and hasten the digital transi-tion. And I’d like to share with you —publicly for the first time — one suchplace where this occurred at an entirelynew level.
Last year at this podium, I spoke aboutthe so-called music and technology war.Rhetorical battles were creating an envi-ronment in which cooperation was difficult.I called for a truce, and offered TheRecording Academy as the facilitator of a high-level summit between music andtechnology leaders.
That summit actually took place thissummer — at George Lucas’ SkywalkerRanch in Marin County, Calif. Why atSkywalker? No, it wasn’t because eachside saw the other as the evil empire.
It was because Lucas’ operation is onethat seamlessly — you might even say“magically” — melds content and tech-nology to produce results that are at onceartistic, popular — and profitable.
Sitting at a conference table in thecavernous Skywalker soundstage whereso many innovative films were scored, wewere inspired by what can happen whenmusic and technology work togethertoward a common goal.
So, we gathered our participants for a two-day retreat. To keep us honest, wemixed in four music creators: Ronnie Dunnof Brooks & Dunn, Leslie Ann Jones ofSkywalker Sound, and two of the industry’smost successful producers — who arehere with us tonight — Jimmy Jam andPhil Ramone.
Guided by our expert moderators,technology guru Ted Cohen and
digital entertainment attorney BobbyRosenbloum — and, I should disclose,under the watchful eye of an antitrustattorney — the participants set out tofind common ground.
Presidents, CEOs and other high-levelleaders dedicated significant time to thisunprecedented discussion. Executivesfrom digital music services such asRhapsody, Napster, eMusic, SNOCAPand Pandora; from technology manufac-turers such as Microsoft and SanDisk;from retailers including Best Buy andAmazon; from major and independentmusic publishers; and from all four majorlabels came to Skywalker for the retreat.
Many of these executives were meet-ing face-to-face for the first time and tous, that alone was important. That theyengaged in such an honest and opendialogue was even more fulfilling. Thatthey all agreed to continue the discus-sion beyond the retreat was gratifying allthe more. But perhaps paramount weretheir contributions to several guidingphilosophies, which we’re calling theGRAMMY Music & Technology Principles.These include:
First and foremost, music creators arethe foundation of the music businessand must be adequately compensatedregardless of the technology. We mustensure that whatever technology is usedto bring music to the public, creators arepaid, period.
Similarly, meeting the needs of consumers is critical, and the music andtechnology industries must provide awide array of business models that appealto consumers and value compensationto creators and copyright owners.Ultimately, consumers will tell us how theywish to enjoy music. Our job is to provide
SOUND POLICYSOUND POLICY by Neil Portnow
Continued on page 18
Sound Policy is a regular column by Recording Academy President/CEO Neil Portnowon Recording Arts issues. The following is a transcript of Portnow’s keynote address atGRAMMYs on the Hill in Washington, D.C., on Sept. 5, 2007.
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them with legitimate choices that valuecreators’ rights.
Third, new technologies are essential tothe future of the music business, thereforean environment for experimentation andinnovation — that respects copyright andmusic creators — should be fostered.Content providers must give entrepreneursthe freedom to explore new and untestedbusiness models — but in return, thoseinnovations must build in an appreciationand respect of copyright.
Fourth, interoperability across hardwareand services is essential to the consumerexperience and should be a priority in thedigital music space. We cannot continueto frustrate and confuse our customers.They know any DVD they buy plays onevery DVD player, and every CD plays on every CD player. Music files must dothe same.
Fifth, the best defense against musicpiracy is a vibrant, complete and legaldigital marketplace. Yes, legislation, liti-gation and education all play importantroles. But without giving the consumerlegal options that provide the same deepcatalogue as pirate sites, we will neversolve the problem of piracy.
Sixth, the industry must make fasterrights clearances a higher priority in orderto grow the legal digital distribution ofmusic and to more effectively competewith the volume of titles available throughillegitimate sources. Now, we all recognizethat music licensing is complicated bynature, and streamlining the process wouldhelp grow the business. Since the retreat,rights owners already have started tocompile a “roadmap” document to makethe process clearer.
Seventh, the music economy is not azero-sum game; music and technology
sectors can both benefit as the businessgrows. Perhaps the biggest disservice ofthe rhetoric wars is framing the debate asthough if content wins, technology losesand vice versa. The leaders at our retreatunderstood that this truly can be a win-win game.
Finally, and perhaps most importantly,continued dialogue among music andtechnology leaders is essential to facili-tating growth in the marketplace. Thatthese very busy leaders of their industriesleft the retreat committed to continuingthe dialogue is perhaps the most gratifyingprinciple of all.
Now, we realize that these principlesare just a first step in greater cooperationbetween the music and technology sectors.There will continue to be hurdles andchallenges ahead as we adapt to the newmarketplace. But I have great respect forthese leaders who came to Skywalker tobuild consensus, and I believe the entireindustry should follow their example andthe standards they have set forth.
So, to the music students listening:Know that we are working to create anenvironment for music that recognizes thevalue of both creators and consumers, anenvironment that rejects a winner-take-allapproach, and one that encourages inno-vation and experimentation. Even thoughthe music industry you will manage willlook very different from the one we havetoday, these concepts will remain constant.
Our generation will do its part to liveby the GRAMMY Music & TechnologyPrinciples, and we hope yours will too.We’re counting on all of you to ensurethat in another 50 years, the GRAMMYs’centennial will be a time to rejoice andcelebrate a music industry and a culturethat we all can be proud of.
CAPITOL TRACKS 1918 CAPITOL TRACKS
SOUND POLICYSOUND POLICY
Continued from page 17
Editors
Jennifer Cebra
David Konjoyan
Art Direction and Design
Top Design / Shachar Lavi [www.topdesign.com]
Pre-Press and Printing
Challenge Graphics / Tara Curtis
©2007 The Recording Academy®. All rights reserved.
National OfficersChair
Jimmy JamVice Chair
Neil TesserSecretary/TreasurerRichard PernaChair EmeritusTerry LickonaPresident/CEONeil Portnow
Advocacy AdvisorsLegislative Consultant, Greenberg Traurig
Diane BlagmanAdvocacy Committee Chair
Gerald VeasleyGeneral Counsel
Joel KatzNational Legal Counsel
Chuck OrtnerDeputy General Counsel Bobby Rosenbloum
For more information, please contact The Academy’soffice of Advocacy & Government Relations:
Vice PresidentDaryl P. Friedman
Manager, Advocacy & Government RelationsApril Canter
529 14th St. NW, Ste. 840, Washington, D.C. 20045
tel: 202.662.1285 • fax: 202.662.1342
www.grammy.com/advocacy
NATIONAL ACADEMY OFRECORDING ARTS & SCIENCES, INC.
CapitolTracks®
A Demotion Of The“Promotion” Fallacyby Daryl P. Friedman
As you read about the importantlaunch of the musicFIRST campaign(see page 10), I’d like to give you aglimpse of how the battle is playing outon Capitol Hill. Corporate radio simplycannot justify its decades-old free passthat allows it to broadcast soundrecordings without compensation. Sobroadcasters are shopping a fictionalargument in the halls of Congress:radio shouldn’t have to pay artistsbecause it “promotes” artists.
So far, Congress doesn’t seem tobuy it, and with good reason. First, themajority of radio airplay is no longercurrent music and oldies stations movescant product. Secondly, while radio hasgrown (thanks to music) to a $20 billionbusiness, record sales are falling, againdebunking radio’s effect in boostingsales. Third, Internet, cable and satelliteradio all pay royalties to artists. Anypromotional effect of AM/FM is surelyexceeded by the newer, more diversetechnologies. Why should big corporateradio get a free pass?
We should never allow a supposed“promotional” effect to substitute forfair compensation to music creators.And yet that is what radio has beendoing for years — broadcasting anysound recordings it chooses, selling adsaround the music to earn billions, andnot paying artists one cent. So whenradio lobbyists say they’re doing artistsa favor, well “thank you,” but we’ll takefair compensation instead.
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