NARM Positions on Digital Distribution

 

·        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.

  

National Association of Recording Merchandisers

                                                                                                                                                   

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.