Dale Dietrich
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Proposed “Perform Act” to Restrict Satellite & Web Streaming Recording

Categories: Big Media v InternetBigMedia v NewTechCopy RestrictionsFair Use/DealingLegal ReformSatellite Radio

Text of Proposed Perform Act
The PERFORM Act (“Platform Equality and Remedies for Rights Holders in Music Act of 2006“) was introduced into Congress yesterday. The bill prohibits satellite radio from offering its subscribers devices capable of recording off the air unless royalties are paid and content is locked with DRM. The catalyst for the bill was new devices XM Radio is bringing to the market that allow customers to save songs on the receivers. Sirius had already made deals with the major record companies that compensate them for downloads on its S-50 receiver.

Also in the bill is a provision that would effectively require music webcasters to use DRM-laden streaming formats, rather than the MP3 streaming.

Sources: EFF Deep Links | ars technica | BBC | TMCNet | Reuters | Billboard | CNet | Tech News – HRCC’s response | Red Herring | Hollywood Reporter | Washintgon Times | Techdirt | PublicKnowledge | Cathy Kirkman

Dale’s Comment: Aspects of this bill have merit. I agree that anyone wishing a permanent, transferable copy of a song broadcast through XM or Sirius should pay for it. If, however, the device does not permit the user to copy the song to an external device, then the concept is more akin to a PVR such as TiVo and fair use rights should allow the user to enjoy the song within the specific device for a reasonable period of time without an additional royalty payment – remember, XM and Sirius subscribers already pay compulsory royalties via their subscriptions to these services. To the extent an additional royalty payment is made to purchase a song, the user should have the right to copy/transmit the song off the XM/Sirius device to any other device owned by the user and, of course, all the other incidents of fair use for purchased music that I advocate for on this site should apply – the right to of the owner to transcode it to any other format, the right to play it on any device owned by the consumer, the right to sell/give-away/alienate the purchased copy (without retaining a copy) etc. If, however, this bill results in an obligation to pay for music that can’t be removed from the device or otherwise fairly used by the user, it should not be adopted.

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