FOR IMMEDIATE RELEASE

April 18, 2011

Contact:

CTIA: Amy Storey, astorey@ctia.org,
202-736-3207

CEA: Jason Oxman, joxman@ce.org,
703-907-7664

The Recording Academy: Kristen Hainen, Kristen@lawmedia.net,
202-785-2100

RIAA: Jonathan Lamy, jlamy@riaa.com,
202-775-0101

Music,
Wireless and CE Join Together

Oppose
Mandate for FM Chips in Mobile Devices,

Urge
Radio Broadcasters to Compensate Artists

WASHINGTON - The Recording Academy,
CTIA-The Wireless Association®, the Consumer Electronics Association (CEA) and
the Recording Industry Association of America (RIAA) today announced their
support for H. Con. Res. 42-the "Creativity and Innovation
Resolution"-sponsored by Rep. Daryl Issa (R-CA) and Rep. Anna Eshoo (D-CA).
(Resolution attached below.)

The resolution recognizes that the U.S.
is a world leader in the creation of technology and musical, film and literary
works and argues that compensating artists and innovators is essential to
maintain this global leadership and to incent the creative genius that is
behind it. The resolution also makes clear its strong opposition to any
government mandates for FM chips, or any terrestrial broadcast chip, in mobile
devices including phones, smartphones and tablets.

In coming together to support the
resolution, all three industries recognize the unique, cooperative and
beneficial relationship between CE innovators, wireless companies and the music
community.

"The music community wants to see the
growth of distribution platforms that compensate musicians and performers. The
most exciting new mobile devices are also the distribution platforms that fully
compensate musicians and performers. FM Radio, by contrast, does not," said
Neil Portnow, president of the National Academy of Recording Arts and Sciences,
The Recording Academy®, after completing last week's "Grammys on the Hill"
advocacy day.

"With more than 650 unique wireless
devices in the U.S., consumers have a variety of options,
including handsets with FM chips. The hallmark of our industry is one
that offers consumers numerous choices so they can customize
their wireless experiences, through innovative streaming music services such as
Pandora or downloading an indie artist's app," said
Steve Largent, president and CEO of CTIA-The Wireless Association.

"An FM chip mandate is unnecessary and
unjustified. These new mobile devices are platforms for innovation and
creativity, and Americans can decide for themselves what functions and features
they want. Requiring today's digital phones to include an analog FM Chip makes
as much sense as requiring them to include a telegraph," said Gary Shapiro,
president and CEO of the Consumers Electronics Association.

"Every platform in the industrialized
world respects property rights but one - terrestrial radio in the
U.S.    So the idea of the government rigging the playing field
to expand the scope of the existing taking makes zero sense.  That's why
we welcome this resolution and the broader concept of policies that reward
technical and creative innovation," added Mitch Bainwol, Chairman and CEO of
the Recording Industry Association of America.

These associations and others will
continue to secure additional sponsors for the resolution. More than 150
musicians asked members of Congress to support the resolution last week as part
of the annual "Grammys on the Hill" advocacy day.

###

H.CON.RES.42 --
Entitled the 'Creativity and Innovation Resolution'. (Introduced in House - IH)

HCON 42 IH

112th CONGRESS

1st Session

H. CON. RES. 42

Entitled the 'Creativity and
Innovation Resolution'.

IN THE HOUSE OF
REPRESENTATIVES

April 14, 2011

Mr. ISSA (for himself and Ms.
ESHOO) submitted the following concurrent resolution; which was referred to the
Committee on the Judiciary, and in addition to the Committee on Energy and
Commerce, for a period to be subsequently determined by the Speaker, in each
case for consideration of such provisions as fall within the jurisdiction of
the committee concerned

CONCURRENT
RESOLUTION

Entitled the 'Creativity and
Innovation Resolution'.

Whereas creativity and innovation
are the backbone of the American economy;

Whereas the genius of American
artists has created a great cultural legacy and continues to create a
critically important source of income to the American economy;

Whereas American technology
innovators lead the world in providing new products to benefit consumers and
the American economy;

Whereas American technology
innovators support protecting the livelihoods of American artists, creators,
and innovators;

Whereas the creative industries
represent a substantial portion of the gross domestic product of the United
States;

Whereas the United States wireless
industry has spent more than $240 billion in capital investments since 2001 to
deliver advanced wireless telecommunications to Americans;

Whereas supporting both creativity
and advanced technological innovations is vital to the economic and cultural
future of the United States;

Whereas investment in the creation
of great recorded music and cutting-edge technological advances should be
nurtured and encouraged;

Whereas it is important to the
American economy as a whole that the appropriate economic incentives are
present for creators, innovators, and their investors to take the risks
necessary to continue to create and innovate;

Whereas the principle that creators
and innovators should be protected is enshrined in clause 8 of section 8 of
article I of the Constitution;

Whereas the United States should be
a leader in promoting the creative industries and the advancement of innovative
technologies;

Whereas the United States should
provide fair and meaningful protection for artists, creators, and innovators;

Whereas copyrights need to be
supported to encourage creative development;

Whereas Internet, satellite, and
cable radio support the creation of new music by compensating the artists whose
talent and hard work are at the core of the music and the investors who support
them and bring their music to the public;

Whereas the development of new
technology, including innovative mobile devices that offer consumers these
advanced radio services, ought to be encouraged; and

Whereas a new Government mandate
that will force mobile device manufacturers and wireless carriers to include
terrestrial broadcast radio tuners in new mobile devices will stifle
innovation, competition, and consumer choice: Now, therefore, be it

• Resolved by the House of
  Representatives (the Senate concurring), That Congress
  should--

• (1) protect those who create
  intellectual property and provide economic incentives that will encourage
  American artists, creators, and innovators to take the necessary risks to
  create and innovate; and

• (2) oppose any mandate for the
  inclusion of terrestrial broadcast radio tuners in the manufacture or sale of
  mobile devices, which would stifle innovation, competition, and consumer
  choice.