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Music Industry 13 June, 2005

Clear Channel's Instant LiveTM-TM- Enters into HFA's 'Express Live' CD and DPD Licensing Agreement; Flexible Licensing Solution Enables Immediate Availability of Live Concert Recordings

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NEW YORK (Clear Channel) - The Harry Fox Agency, Inc. (HFA), the premier U.S. mechanical rights organization, announced today that Clear Channel's Instant LiveTM service has entered into HFA's "Express Live" mechanical licensing arrangement for CDs and permanent digital downloads (DPDs). The HFA Express Live license accommodates the special needs of Instant Live type recordings, making the format's quick turnaround possible.

HFA began to offer Express Live mechanical licensing in December 2004. This license arrangement is targeted at companies that enable music fans to purchase recordings or downloads of concerts almost immediately after the last note is played, either at the venue or from a web site after the concert.

"HFA's Express Live licensing program is a significant milestone in the development of the Instant Live business," said Stephen Prendergast, General Manager, Instant LiveTM, LLC. "HFA has proven that it can create a different, flexible licensing program that accommodates the immediacy of our live concert product that is also practical and easy for a licensee to use."

"We're pleased that Instant Live has signed on to use HFA's Express Live mechanical licensing agreement," said Michael Simon, Senior Vice President of Licensing and the Chief of Strategic Development and Marketing for HFA. "It was a challenge to create a licensing scheme that answered the distinct needs of this new kind of recording, and we're pleased to see that is being adopted by the market leaders for this new recorded concert product."

There are several differences between an Express Live and a standard mechanical license. For a standard license, the licensee must obtain a separate mechanical license for each individual recording of the song by the same recording artist.

Distinct from the standard mechanical license, Express Live licenses are limited to product recorded at live concerns and sold to consumers either at the concert venue or through mail delivery (if the licensee also wishes to distribute Express Live CDs or DPDs via a regular third-party retail channel, it must obtain a standard mechanical license before distribution). The license is "reusable," in that one license will cover all recordings of the same song by a particular artist in the Express Live context, though the individual recordings will be differentiated when the licensee submits its regular quarterly licensing reports and payments.

Express Live licenses are offered at the same statutory royalty rate as a standard compulsory mechanical license, which is currently 8.5cents for recordings five minutes or less, or 1.65cents per minute of playing time for songs over five minutes, rounded up to the nearest minute. First use, reduced rate, and other song restrictions will require publisher approval prior to the issuance of licenses by HFA. Others who have entered into HFA Express Live licensing agreements include Gov't Mule, Hyburn, Encore Distribution and Widespread Records.

Licensees interested in HFA's Express Live licensing program can contact Lauren Apolito at [email protected] or 212-922-3225.

About HFA
Established in 1927 by the National Music Publishers' Association, HFA represents over 27,000 U.S. music publishers for their mechanical licensing needs, issuing licenses and collecting and distributing royalties. HFA also provides collection and monitoring services to its U.S. publisher clients for music distributed and sold in over 75 territories around the world. For more information about HFA, or to become an affiliate publisher or a licensee, see www.harryfox.com.

About Clear Channel Music Group
Clear Channel Music Group, a division of Clear Channel Entertainment, focuses on global, national and local promoting, venue and festival management and artist touring services. The Music Group promotes live music concerts by a majority of the world's most popular performers, as well as many new up-and-coming artists. Clear Channel Music Group comprises 13 business units; Bill Graham Presents, Avalon Attractions, Evening Star Productions, PACE Concerts, Cellar Door North, Cellar Door South, Belkin Productions, Elevated Concerts, Electric Factory, Jim Koplik Presents, Ron Delsener Presents, Tea Party Concerts and Chuck Morris Presents. It currently owns, operates, or books approximately 80 live entertainment venues in the U.S., including 45 amphitheaters, 25 theaters and clubs, plus 8 venues in Europe. Clear Channel Entertainment is a subsidiary of Clear Channel Communications, a global leader in the out-of-home advertising industry. More information may be found by visiting www.cc.com and www.clearchannel.com






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