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Radio Distortion Bulletin #15

15 July 2009

During a May 18, 2009 appearance on the Russ Parr show, Radio One, Inc. Chairperson and Founder Cathy Hughes put an interesting spin on the free market system:

"Allow us to participate in the capitalistic system and not tie our hands behind us or put us out of business."

THE FACTS: If you create something of value, you have a right to be fairly compensated for the use of your work. That's "Capitalism 101." However, under the current system, performers are forced to allow broadcasters to use their music for free with no legal right to compensation. That may be what Ms. Hughes considers a -capitalistic system‖ she wants to participate in, but it certainly isn't capitalism.

Radio broadcasters are compensated by advertisers who choose to use radio's airwaves. The Performance Rights Act simply establishes that performers should have a right to be compensated by broadcasters who choose to use performers' music in order to make billions of dollars from those advertisers who know that people love to listen to music and don't mind the occasional commercial interruption.
Capitalist or not, certainly Ms. Hughes can see the logic in that.

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