The Digital Media Association (DiMA) and the National Association of Recording Merchandisers (NARM) asked a federal court today to rule that digital stores' 30-second audio clips are fair use. The effort stems from the position of performing rights organizations (ASCAP, BMI and SESAC) that those clips merit public performance royalties paid to songwriters and publishers.

"If ASCAP succeeds in pressing its demand for a new payment for these previews," said Jonathan Potter, Executive Director of DiMA, "Internet music retailers would be disadvantaged simply because they are selling online, and songwriters and music publishers would be getting a royalty for the preview on top of the appropriate and well-deserved royalty that is paid when the music itself is sold."

It's understandable that every party seeks every royalty it can get, but I believe adding an expense to brief audio clips -- which are totally promotional in nature -- puts an unfair burden on a retailer. Download stores do a service to songwriters and publishers by allowing consumers to preview tracks.

Posted by Glenn at 11:34 AM | Link
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