Evening star., 1932-08-26
RADIO VICTORY WON
BY MUSIC OWNERS
Royalties to Amount to More
Than 400 Per Cent During
Next Three Years.
BY ROBERT MACK.

Faced with the loss of copyrighted
music for performance over the radio.
organized broadcasters finally have
capitulated to the demands of the
copyright owners" for a stupendous
increase in royalties to amount to more
than 400 per cent during the next
three years.
A smashing victory for the Amer
ican Society of Authors, Composers and
Publishers, the new scale means that
whereas broadcasters heretofore nave
paid less than $1,000,000 year to
enjoy the kind permission of the copy
right owners" they will pay about So
100000 in 1888, about S4,000000 in 1884
and about $5,O00,O00 in 1895 and each
year thereafter.
Months Wrangle Ended.
The agreement for the time being
ends the row over the use of popular
music over the radio which began last
April and which had been deadlocked
since July. 1t becomes effective Sep
tember /. The difference in the method
of assessing royalties lies in a percent
age basis, as against the present fiat
rate basis Stations will pay 3 per
cent of their net receipts from the sale
of time to advertisers during 1888, plus
a flat-rate sustaining" license to be
readjusted in such way as to realize
approximately the same amount OF
guarantee" revenue that the copyright
owners now receive. In 1884 the per-
centage will be boosted to per cent
and in 1885 and thereafter to per
cent.
The National Association of Broad
casters, acting for the industry, accepted
the proposition under protest. Broad
casting stations are in a furore, some
even threatening to disregard the agree
ment and to attack the American So
ciety in the courts as an illegal monop-
oily. Acceptance of the new scale does
not mean an amicable settlement. A
legislative fight is almost certain In
Congress this Winter.
Those to Bear Burden.
According to E. C. Mills, general man
ager of the society. about 100 large
stations and the networks will bear the
brunt of the increased rates, with some
300 smaller stations given reductions
through readjustment Of their sustain
ing licenses. All stations broadcasting
with 500 watts power or less have been
given extensions of their present IL
censes until october /, during which
period Mr.. Mills will work out with them
a readjusted sustaining license designed
to bring about equitable treatment
That the broadcasters will battle the
society, despite the agreement, is seen
in their appointment of Oswald F.
Schuette of Washington to carry on the
copyright fight with "dictatorial pow
ers." Mr.. Schuette several years ago
established a reputation es a trust
buster" He organized the Radio Pro-
tective Association in 1927, representing
independent set manufacturers, and was
instrumental in bringing about the Gov
ernment's antitrust action against the
Radio Corporation of America, now
pending in the courts.
1t is known that broadcasters are
giving serious thought to the creation
of their own music survey, which would
lid them of dependence upon the So
ciety. One Of Mr.. Schuette's immediate
tasks, it is understood, will be to devise
methods Of establishing such music
supply and reservoir for radio.
tcopyright 1882. by the Consolidated Press).