House panel OKs digital licensing bill
By Anne Broache
Staff Writer, CNET News.com
Published: June 8, 2006, 6:10 PM PDT
A U.S. House of Representatives panel on Thursday approved a digital copyright bill that critics say could imperil home-use copying of music and video recording devices like TiVo. The Section 115 Reform Act, or SIRA, introduced by Texas Republican Lamar Smith, attempts to overhaul a piece of copyright law that established a complex system of "mechanical royalties" for record companies, recording artists, songwriters and publishers in exchange for the right to reproduce and distribute their music.
There's a general consensus among politicians, the U.S. Copyright Office and the music industry that the law, first written in the era of piano music rolls, is in need of updates for a digital era. Right now, companies wishing to sell music have to negotiate separate licenses for each song's recording.
SIRA proposes establishing a "blanket licensing" system in which those entities would apply for and receive licenses through a one-stop shop. Established by the Copyright Office, that body would act as a representative for music publishing companies with the greatest share of the market.
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