I have introduced legislation to do this. Corporations making profits by building and running prisons and detention centers. We need to invest in drug courts and medical and Mental Health intervention. [applause] substance addiction should be seen as an illness and treated as such. [applause] we need to and minimum sentencing. And very importantly, we need to develop, which we do not have today, a path back from person to civil society. And when we talk about issues facing our country, i want everybody here not to forget that there are are 11 Million People in this country today who are undocumented, who are living in fear and living in the shadows. Those people must have the rights of legal status. We must have comprehensive immigration reform. [applause] and we must move toward a path toward citizenship. [applause] what i hope that we can do as a nation and as a people is to think big, not small. Many people dont know this but we today are the wealthiest nation in the history of the world. Most people dont know that because almost all of the wealth is resting in the hands of a few our job is to say that as the wealthiest nation in the history of the world, with an enormously productive workforce, with some great universities and scientists and teachers, there is nothing if we put our minds to it that we cannot accomplish. Dont get yourself involved in a worldview which says do we cut education by 2 or races by 1 . That is not the dynamics that we should be looking at. Our job is the same that in the wealthiest country on earth why isnt a situation existing in which every parent goes off to work, his or her kids are in the best quality prek and childcare in the world. [applause] y. Can we do it . Tell me why. We can do it. Tell me why we cannot do with many other countries do to make sure that everybody in the country has the ability is able to get all of the education they need regardless of their income. Why income. Y. Can we do it . [applause] please dont tell me that in this country we have to have the highest rate of childhood poverty of almost any major country on earth. Dont tell me we have to have that. Dont tell has to be the only major country to provide health care or to provide paid family and Health Health care medical leave. [applause] dont tell me that the United States has to continue having more income and wealth inequality than any other major country on earth that have corporations that make billions when they are paying almost nothing in taxes. Dont tell me that is the country we have to be. [applause] but do tell me that we can have the best Health Care System in the world for our people. Do tell me that they we can lead the world in transforming how Energy Systems and combating climate change. [applause] do tell me that Health Care Workers in the United States will not be losing the pensions they were provided. [applause] and that our seniors and people with disabilities will in fact see an increase in their Social Security benefits. [applause] do tell me that together we will and racism and sexism and. [applause] this is the country we can create when we come together, when we stand up and fight back and when we create a government that works for all of us and not just a handful of billionaires. [applause] please join the political revolution. Thank you all very much. [applause] [applause] [applause] [applause] [inaudible conversations] [inaudible conversations] [inaudible conversations] [applause] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [applause] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] we talked to the head of the Recording Industry association cary sherman. Denver march and cia director john brennan who said today the militant group isis isis has other terror attacks in the pipeline. Now on cspan we want to introduce you to cary sherman, the chairman and ceo of the Recording Industry association of america. Mr. Sherman who does your organization represent . Guest we are one of americas major music companys iconic names like columbia Warner Brothers capital, motown and rca. We do a wife or a deep things that support them in supporting their artists. Host such as . Guest we give gold and platinum records. We do lobbying to ensure the protection of intellectual property rights. We do litigation to make sure that they law supports protecting rights. We do antipiracy work. We promote and transition to the digital marketplace. Host s those are some issues where going to talk about today on the communicators with you but how do people get their music . Guest in an unbelievable variety of ways. 10 years ago you got it basically by buying a cd or listening to radio. Now you can stream it. You can stream like an Internet Radio station like pandora. You can stream whatever song you want to hear on spotify or apple music. You can do it on google. You can do it on pc. You can download the original tracks. You can download the dual albums. There are for idea voice that people can listen was inconceivable 20 years ago. Host that transition from what we knew 10 years ago to what we know today, what has that done to the Music Industry . Guest it has caused a lot of difficulty as we have transitions. The fact of the matter is the transition has operated relatively smoothly when you consider that we are now 75 digital so there has been an extraordinary transition but there have been lots of lumps along the road as we figure out well what rights are necessary to license a Download Service. What rights are necessary to download the streaming service and how to deal with situations, how to make sure that is sufficient to make the industry sustainable. So every time we think we have finally gotten to a point of growth we find there is a new transition coming along the way which is what is making is a challenging but its also what makes it so interesting and the opportunities are so great because you are finding new audiences in a way to deliver music. The audience is finding a way to connect with fans. Host and want to bring in alex byers a politico into this conversation. Guest 2015 its never been easier for someone to record music at home or at a small studio. Use thirdparty services to upload to spotify our platform like that. Do we still need record labels at this point . Will weigh in 10 years at technology continues to develop . Guest when the internet first started becoming the new Development People thought the air of labels would be over. Why would you need them when in fact they can go directly to their fans. The conclusion now is that labels are more pork than ever because everybody who wants to be an artist actually has the opportunity to be on line and put their work out there and try to find an audience. And the result is more clutter than ever. We need somebody whos going to be a pacemaker is going to be their Financial Resources find a particular artist saying this person is worth hearing. I think labels are actually more important than ever and they have certainly played a significant role in developing the artist careers. Guest the fact that we still have an opportunity for artists to do it themselves is great and that way artists can choose what they want to do. Many artists like getting into the business and getting into the fan relationships and touring and so on and so forth but there are other artists who really does want to focus on perfecting their craft and making music and for them having the services of the label makes all the difference. Guest now you talk about what about our roles is growing on capitol hill. We have seen is a big topic of discussion over the last few years especially in the House Judiciary Commission where there are 20 hearings on the subject over the last few years. At the same time we know that its really tough for congress to do pretty much anything not to mention something as complicated as licensing. Do you really think we are going to see legislation to change some of the things you would like to change . That seems like a tall order looking at the political atmosphere right now. Guest i think it is a tall order. Chairman goodlatte has basically approached this issue on a systematic way, attempting to gather a lot of information. He has made clear that the industry itself has to try and develop incentives about how music licenses can be reformed and legislation. The Digital Music services need to be part as well. That is a very tall order and is going to be very hard to do but that doesnt mean we wont try. Host cary sherman who are the players in this debate over how we get our music and who pays for his . Guest okay well we represent record labels and we are the Business Partners of the artists so we create what are technically called sound recordings and its basically when you make a copy of the words and the music to a song. Then there are the songwriters and publishers. They write the words and the music so they have their own separate copyright and entirely separate licensing mechanisms and organizations so it becomes quite complicated because you were having to license to creative works for one use by a streaming service or a Download Service and so on and so forth. Then you have the license entities themselves as bmi represents the songwriters and publishers but they have their own views about what is best for licensing. They have Digital Music services and Digital Music services are in a very different position because they often operate under different regulatory regimes. Pandora for example is a non interactive Radio Service which means it gets the benefit of a government compulsory license. We are required to make all of their music available to pandora as long as they pay a rope he raped that is set by the government and you have satellite radio. They also get the benefit of government compulsory license except that they operate under a different rate standard than pandora does. Then you have spotify or apple music or audio and others, rhapsody. They operate in the marketplace where there are services are called and Interactive Music Service so that you can pick what song you want to hear right now and it will play that song where that album without having to negotiate in the marketplace with record companies. And the publishing side it gets even more complicated going and i wont bother going into all of that now. Just goes to show that we have a hybrid licensing system where if you are in the car listening to music, if you listened to it over a. M. Fm radio with the artist will not get a sense. If you connect your cell phone to your car stereo and is on pandora you will get one rates. If you connected and it comes over spotify they will get a higher rates. Its crazy. Its a broken system and is way too complicated for her world in which people need to license 20 million tracks at a time instead of one song or one album at a time and thats why its so difficult for this transition to take place. Host so if you got to decide how this changed, how would it change . What change would you like to see . Guest a lot of changes is the problem and there are a lot of players involved. First off, we would want to be paid by am fm radio. I think its a marketable. Most people are shocked to learn that in todays age am fm radio pays nothing to artists and record labels when they broadcast their music. They do pay the songwriters and publishers but they dont pay artist label so this is a 16 billiondollar industry where their earnings 16 billion in advertising revenues every year from basically the use of the music and they pay nothing for it. There is no other copyright that is discriminated against that way and there are virtually no other developed countries in the world that discriminate recordings that way. Yet, special exemptions in u. S. Law, a unique u. S. Situation. We would want to fix the below market rate standard that sirius xm enjoys. For some reason they were grandfathered at the time when they were a startup and that grandfather still exists even though they are making money hand over fist. They ought to be sharing their revenues more fairly with the people who create the music on which their services space. That needs to be fixed as well. We really need to do something about making sure that all creators are paid fair market value regardless of the platform that they are on and that is not the Current Situation right now. We also need to revise whats called the manic mechanical license system. Its an odd term but its the royalty thats paid for the reproduction and distribution of a copy of a recording. So when a Record Company licenses a song or a cd, it gets a mechanical license. The law for that was written in 1909, so you have to send a certified letter by mail one song at a time you now know saying im going to take advantage of this license. When you are licensing 30 million tracks at a time you are not sending out certified letter swan song at a time and by the way nowadays there are multiple songwriters and publishers for every one song. We need a blanket licensing system where you file one piece of paper and youve got a license and then you handled the distribution of money afterwards. These are just some of the things we need to do and all of them are challenging. Guest i have heard you talk about regulatory parity with regard to the broadcasters sirius xm and the middle that global pandora that usually stops at least from what ive heard from the industry recently before we get to the interactive services. Would you want to see some type of equilibrium between what is not interactive and what the interactive have to do worse should they stay outside of the compulsory system . Guest as a matter of practical reality the laws not going to change. We understand that there are efficiencies that have the compulsory license though we are not able to change that. It is odd that we have a compulsory license for music but im not a nuclear warhead. We understand that thats going to continue but certainly we dont want the compulsory license extended beyond that which already exists. The marketplace deals work a lot better for the industry. The rates that we get from spotify or for apple music for their Ondemand Services are much much greater and much more beneficial for the industry than the rates we get for pandora. Guest its also my understanding and i dont have exact figures here but a lot of labels have a stake in some of the interactive platforms like spotify. That makes it the governance here and who is paying him more complicated than that already is. How does that factor into, you know its kind of like a platform that has a label investment being paid, paying a label or being paid by label. Help us sort that out a little bit. Guest that issue is a little complicated because first of all there are lots of deals where the Digital Music service wants to license source to take an equity stake because they want them to have a stake in the success of the service