How much money do you think Clear Channel has? I mean, really - everywhere I go and everything I listen to seems to be connected to this radio/live music behemoth. I’ve got no problems with a company working hard to establish itself and make some bucks off of consumers…I do live in America, after all. What I do take issue with is the subversive tactics they’re using to avoid any real repercussions of the FCC investigation into allegations of payola at some Clear Channel stations, all at the expense of independent artists.

Background: Clear Channel (and other broadcasters alleged to have taken money for airplay) and the FCC reached a recent settlement stop the payola investigation on the condition that the broadcasters agreed to play 4,200 hours of local and independent music. In response, Clear Channel set up a website to allow qualifying artists to submit their music for consideration under the program. Sounds efficient, but the American Association of Independent Music (A2IM) found some shady language in the licensing agreement that artists were required to check in order to submit their music. In short, the terms allowed “Clear Channel the royalty-free non-exclusive right and license, in perpetuity […] to use, copy, modify, adapt, translate, publicly perform, digitally perform […]” to any content submitted via their website. In essence, if the artist wanted airplay, he or she would have to waive any rights to public performance royalties normally paid by the broadcaster.

Sickening, isn’t it? ‘Unconscionable’ also comes to mind. Fortunately for the little guys, the A2IM and advocacy group The Future of Music Coalition went public with its findings and within a week had support from Congress in questioning Clear Channel’s commitment to honoring the terms of their agreement with the FCC. Senator Russ Feingold (D-Wis), one of my childhood political heroes, lead the government charge by sending a letter to each of the offending radio groups to remind them of the terms of payola consent decree.

By the end of last week, Goliath’d had enough and Clear Channel modified the language in their licensing agreement and removed the words “royalty-free.” Independent artists are once again ensured proper rights to their performance royalties. It’s a major victory for artists in the quest to be properly compensated for their work, but the war rages on.

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