NARM Positions on Digital Distribution
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Copyright law should apply in cyberspace. Copyright law should continue to protect
the rights of copyright owners to collect revenue for the manufacture, distribution,
or performance of copyrighted works, which are digitally distributed. NARM
retailers are law-abiding companies with a long history of supporting the
anti-piracy efforts of their association and their industry. We support the enforcement of copyright law
in digital distribution, and insist on enforcing it completely. The laws that limit the reach of copyright
protection should be enforced with the same vigor as the laws that extend it.
·
Copyright law must not trump privacy laws. Consumers
have purchased music, video, and books for years without having to divulge
personal information. Retailers must
not be put in the position of having to choose between competing laws. An individual's right to privacy must not be
forsaken in the name of protecting the rights of copyright owners.
·
Copyright law should not become a tool for stifling
competition and innovation. There has been a sensible system of checks
and balances in copyright law, which curb the rights of copyright owners in
ways which foster competition and innovation in the marketing, sale, and use of
intellectual works. Under this system
new technologies (like VCR's and MP3's) and new ideas (like video rental and
digital lockers) enhance the consumer experience of the work, and ultimately
it's value. First sale doctrine, fair
use, and exceptions for in-store play should all apply to digitally distributed
products.
·
The needs of copyright owners must be balanced
against the needs of consumers.
Consumers
buy books, videos, and CD's with the expectation that they can read, watch or
listen to them wherever and whenever they want, that they can loan them to
friends, donate them to libraries, and leave them in their wills. These basic consumer expectations should not
surreptitiously be eliminated by End User License Agreements buried deep in the
text files of digitally distributed products.
In fact, lawful uses of lawfully made products cannot be rendered
unlawful just because the copyright owner objects to them. No one should ever need a license to give
away a legal copy of a book, movie or sound recording, and the person receiving
the gift should never have to pay to enjoy it.
·
A digital transmission is either a performance or a
reproduction, but not both. Retailers (and therefore consumers) are
being asked to pay royalties multiple times on the same digital
transmissions. The only reasonable
royalty system is one, which provides appropriate compensation to copyright
owners one time for the applicable use. If the transmission is in furtherance
of a public performance, a performance royalty would apply. If the transmission is for the purpose of
making a reproduction, then the mechanical royalty would apply.
The National Association of
Recording Merchandisers (NARM) is the not-for-profit trade association founded
in 1958 whose nearly 1000 member companies represent the retailers,
wholesalers, and distributors of prerecorded music in the United States. Our members include such familiar retailing
names as Tower, Best Buy (Musicland, Sam Goody), Wherehouse, TransWorld
Entertainment (Camelot, Coconuts, Record Town, Specs, Strawberries, The Wall,
Waxie Maxie, FYE), Borders Books and Music, Target, Newbury Comics, Waterloo
Records, CDNow, and Amazon.com.
Our associate member
companies represent the full spectrum of entertainment suppliers including
major record labels, independent labels, home video companies , as well as
companies offering products and services which support entertainment retailing. This member category includes such companies
as Arista, Capitol, Epic, RCA, Warner Bros., MCA, Rounder, Telarc, Walt Disney,
Welk Music Group, Wind-Up, Paramount Home Video, Buena Vista, Case Logic,
Recoton, and Billboard Magazine.
NARM is a full service
organization whose mission is to represent the common interests of our members
to industry and public policy makers and to promote the visibility and image of
the entertainment software industry.
Key offerings are:
·
Member Services: NARM offers a range of
programs and services including a member directory, a newsletter, educational
materials on merchandising, loss prevention, and operations; a database of
product offerings, and a website.
·
Events: NARM sponsors an annual convention and other
conferences and seminars throughout the year, which provide networking,
selling, and educational opportunities to our members.
·
Research and Statistics: NARM
gathers, commissions, and disseminates research and information on topics
ranging including annual sales figures and trends for our members, used CD's,
listening stations, record clubs, and digital distribution.
·
Marketing and Promotion: NARM
sponsors merchandising campaigns for seven major televised awards shows
including the Grammy's, the MTV Awards, and Soul Train. NARM originated the "Give the Gift of
Music" campaign over 20 years ago to promote music sales at Christmas, for
Valentine's Day, birthdays and graduations.
NARM has offered low-cost CD samplers for classical and jazz (that have
topped the Billboard charts) along with music teaching guides for use in
schools.
·
Advocacy: NARM's advocacy efforts have helped to forge
industry consensus and support on a range of issues from street dates to
packaging standards to source tagging.
·
Public Affairs: NARM provides leadership and
advocacy on key issues affecting our members at all levels of government.