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Satellite Digital Audio Radio Services and Copyright Law Issues (CRS Report for Congress)

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Release Date July 12, 2006
Report Number RL33538
Report Type Report
Authors Brian W. Cashell, Government and Finance Division
Source Agency Congressional Research Service
Summary:

Satellite radio services such as XM and SIRIUS provide high-quality digital audio programming to millions of subscribers who pay a monthly fee to enjoy listening to a wider variety of entertainment and news than traditional terrestrial (AM and FM) radio stations offer, including many genres of music, sports broadcasts, and talk radio. However, partly because of the digital nature of satellite radio broadcasts, when satellite radio providers transmit copyrighted content to their customers, several legal issues potentially arise that may not be present in terrestrial radio broadcasts. Copyrights in music are held by composers and recording artists or their record labels. The rights of these parties under the Copyright Act to control and financially benefit from third-party use of their creative works may affect the music licensing fees paid by satellite radio companies, and may limit the manner in which consumers listen to and enjoy music broadcast by satellite. This report explains the music copyright issues involved in satellite radio services, summarizes the concerns raised by some music copyright holders over particular broadcast recording features offered by satellite radio companies, and examines legislation introduced in the 109th Congress that seek to reform the current licensing scheme for digital audio transmissions and online music deliveries, including S. 2644 (PERFORM Act of 2006) and H.R. 5553 (Section 115 Reform Act of 2006).