Skip to comments.Deal Would Mandate FM Radios In Cell Phones - agreement between NAB/RIAA headed to Congress
Posted on 08/23/2010 2:08:49 PM PDT by a fool in paradise
There may be an FM radio in your next cell phone whether you want it or not. The National Association of Broadcasters is lobbying Congress to stipulate that FM radio technology be included in future cell phones. In exchange, the NAB has agreed that member stations would pay about $100 million in so-called performance fees to music labels and artists. Radio stations would be required to pay performance royalties on a tiered schedule with larger commercial stations paying more than smaller and non-profit stations.
The agreement is part of a compromise between the NAB and the Recording Industry Association of America, which will take the deal to legislators mulling changes to the laws that govern the music and radio industries. Under the proposal, non-profit stations and small commercial stations with less than $50,000 in annual revenue would pay $100 or 1% of revenue, whichever is the lesser amount. On the other end of the spectrum, stations with more than $1.25 million in annual revenue would pay 1% of their revenue.
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The fees havent been approved yet and there is no guarantee the proposal will pass in this session of Congress, or even in any session.
It is important to note that stations with incidental music use news, talk and sports radio would not pay for music, said NAB spokesman Dennis Wharton earlier this month in a statement.
Additionally, religious services not religious music would be exempt from music fees. Broadcasters have also argued that FM radio access on cell phones would have public safety benefits by alerting and informing citizens in crisis situations.
Online radio already is required to pay performance fees and many online music providers have said the fees caused them to abandon their service or sharply curtail it.
The proposed legislation would require all future cell phones to include an FM chip representing an estimated cost of about $1 for each chip. Although most cell phone manufacturers oppose being mandated to supply FM chips, many cell phones already include FM chips.
A coalition of six technology industry associations announced their opposition to the chip mandate on Monday. Calls for an FM chip mandate are not about public safety but are instead about propping up a business which consumers are abandoning as they avail themselves of new, more consumer-friendly options, according to a coalition statement.
The coalition consists of the CTIA the Wireless Association, the Consumer Electronics Association, the Information Technology Industry Council, the Rural Cellular Association, TechAmerica and the Telecommunications Industry Association.
Is not the US Federal government’s only role to
FORCE the citizens to buy selected products?
It certainly is NOT protecting the US border.
transmitter as well, no doubt.
In “crisis situations” I wouldn’t plan on relying on cell service. Anyway, stupid idea.
Why in the world would I want to listen to FM radio on my phone?
Let’s just cut to the chase and GIVE RIAA the cash, and leave cell phones alone.
I guess once they get the idea that they can mandate sales from the Federal level it starts to look good in other arenas.
I’m sorry. You’ve reached a number that is disconnected or no longer in service. If you would like to listen to some soothing FM music while you ponder your next move, please press 1.
Once had a phone with an FM radio.
Utterly useless. It only worked with a wired earphone that was both the source of sound and the antenna. The only use for a radio like this is for talk radio and ballgames, yet those are all on AM.
Yet another pass-thru cost aimed at us for a service we don’t particularly want. That poor, tortured Commerce Clause ...
This is patently absurd.
All I listen to is AM.
If they put AM on my phone, which has an S9 bluetooth, I would love it.
FM doesn’t have Rush or Levin.
Too much government interference and a dereliction of duty when it comes to addressing border secuity and permitting a Gulf oil spill to be cleaned up.
Then again, there was deliberate willful neglect in the banking crisis as well.
While the idea of forcing FM chips into cell phones is ridiculous, you’re wrong about it being useless. My current (and previous) phone has an FM chip which I use everyday at work to listen to a DC sports talk station (106.7). If I get bored listening to the radio, I use it as an mp3 player. I can also use the SlingPlayer on it to watch TV.
While you may not use it, lots of people like me consider it a useful feature.
Mandatory FM? Adding to the cost of my phone, and my phone bills?
Next thing is some lawyer-legislator will introduce a bill allowing it to be treated as a “public utility” and to add fees.
Your school district, city, county and state will add a “FM Radio-Cell Phone Surcharge”
But what if I prefer AM radio? Prefer Satellite radio? Prefer short wave radio? Prefer no radio?
Freedom. Freedom from paying for things I don’t want or use.
They got away with getting the FM requirement for car radios and UHF became required for all TVs years ago.
They are practicing the liberal art of incrementalism.
That's not the issue.
FM chips are fine. But if the government requires them, then I would like to see the broadcasting industry go bankrupt.