In his testimony before the House Judiciary Committee dated March 8, 2005, the President of the NMPA, David M. Israelite, testified that the lack of a compulsory license for use of songs in subscription music digital services has "placed songwriters and music publishers at an inherent disadvantage in negotiating mechanical rates for subscription services." He also stated "songwriters and music publishers have yet to earn royalties from subscription services, and the subscription services in turn have been unable to close their books due to uncertainty as to royalties they owe for musical work rights." He closed his testimony with this appeal: "We look forward to working with Congress to find a way to correct this problem."

This testimony is a refreshing step towards progress in setting up clear parameters for use of songs in subscription music services. For years, as Israelite points out, there has been uncertainty, and still is, as to a fair royalty rate for payment to the songwriters and publishers from subscription digital music services.

Downloads of songs, on the other hand, trigger a 8.5 cent payment to the songwriters pursuant to a compulsory license rate set up by the Copyright Law. According to Israelite "the compulsory license has made it possible over the past century for virtually any performing artist to record our members' musical compositions, while guaranteeing compensation to songwriters for their creative efforts. Consumers have been the winners."

As Israelite points out, the compulsory rate for mechanicals has worked well to compensate songwriters, and at the same time give a reasonable rate for users of music. Extending a compulsory license for the use of songs in subscription services will also have a beneficial affect for the songwriters, the subscription services and the public.

The record companies should take notice. A compulsory license could also help the labels assure their continued existence. If they would finally allow the legalization music file sharing in return for a compulsory rate that all users must pay which is reasonable the labels might salvage their future.