Statement of Pamela Horovitz

NARM President

On the Music Online Competition Act of 2001

We are extremely gratified that, through the leadership shown by Representatives Boucher and Cannon with the introduction of the Music Online Competition Act of 2001, a necessary public policy dialog can be initiated on many of the important issues surrounding the digital distribution of music. The retailers of music represented by NARM have grown increasingly concerned that the marketplace of the future, as envisioned by the entertainment conglomerates, is one in which the consumer will not enjoy the variety of options in selection, service, convenience, and price which competition between retailers has always ensured. The legislation now before the House of Representatives appropriately recognizes that basic retail functions such as offering consumers a chance to preview music prior to purchase deserve a place in cyberspace, but wisely does so in such a way as to benefit both consumer and artist alike. It would also ensure that competition in the digital distribution of music is enhanced by making clear that copyright owners who license content to affiliated entities must also license such content to entities not affiliated with them on non-discriminatory terms and conditions. We welcome the opportunity to support this legislative initiative and to offer the kind of common sense solutions which retailers are best equipped to provide.