Oct. 4 (Bloomberg) -- The National Association of Broadcasters, seeking to prevent legislation requiring payment of new music royalties by radio stations, asked Congress to investigate the relationship between artists and labels.

NAB President David Rehr said in a letter to Representative Howard Berman that any effort ``to improve the circumstances of performers'' should also look into the ties between artists and record companies.

Berman, a California Democrat who chairs a House subcommittee on intellectual property, plans to propose legislation this month requiring broadcasters including Clear Channel Communications Inc., the largest station operator, to pay their first-ever royalties to performers and labels for airplay.

``I've been planning on holding an additional hearing on performance royalties soon after the bill is introduced,'' Berman said in an e-mailed statement. ``I hope that the NAB will be prepared then to present arguments on the merits of the issue at hand, rather than continuing this attempt to divert attention away from the fundamental point.''

Under current law, free terrestrial radio stations don't pay royalties to performers and artists. They do pay songwriters and publishers. Satellite and Internet radio companies pay royalties to performers, labels, publishers and songwriters.

The NAB has accused the music industry of trying to ``tax'' stations and argued that radio play promotes artists and spurs music sales.

Hearings

Rehr urged Berman to call the four major record companies and their trade group, the Recording Industry Association of America, to hearings. He asked the congressman to ``explore more thoroughly the typical business practices of the recording industry.''

``Historically record companies have been accused by many artists of shabby treatment,'' said Dennis Wharton, a spokesman for the NAB in Washington. ``It's only fair for top executives of RIAA-member companies to address that.''

The major record companies are leader Vivendi SA's Universal Music Group, Sony Corp. and Bertelsmann AG's Sony BMG Music Entertainment, Warner Music Group Corp. and EMI Group, owned by Terra Firma Capital Partners Ltd.

Warner Music, based in New York, fell 1 cent to $10.83 at 4:32 p.m. in New York Stock Exchange composite trading. Vivendi rose 7 cents to 29.87 euros in Paris.

Berman has held one hearing on performance royalties, on July 31.

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net

Last Updated: October 4, 2007 17:55 EDT