Songwriter Equity Act of 2014

Songwriter Equity Act of 2014 - Amends federal copyright law regarding the exclusive rights of sound recording copyright owners to remove a provision that prohibits license fees payable for the public performance of sound recordings, by means of a digital audio transmission, from being taken into account in any administrative, judicial, or other governmental proceeding to set or adjust the royalties payable to copyright owners of musical works for the public performance of their works.

Requires Copyright Royalty Judges (CRJs), when setting royalty rates under the compulsory license available for the reproduction and distribution of musical works (commonly referred to as a "mechanical license"), to establish rates and terms that most clearly represent the rates and terms that would have been negotiated in the marketplace between a willing buyer and seller.

Requires CRJs, in establishing such rates and terms, to base their decision on marketplace, economic, and use information presented by the participants. Allows consideration of comparable uses and circumstances under voluntary license agreements.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4079 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 4079

   To amend title 17, United States Code, to ensure fairness in the 
 establishment of certain rates and fees under sections 114 and 115 of 
                  such title, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 2014

Mr. Collins of Georgia (for himself and Mrs. Blackburn) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To amend title 17, United States Code, to ensure fairness in the 
 establishment of certain rates and fees under sections 114 and 115 of 
                  such title, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Songwriter Equity Act of 2014''.

SEC. 2. EFFECT ON ROYALTIES FOR UNDERLYING WORKS.

    Section 114(i) of title 17, United States Code, is amended to read 
as follows:
    ``(i) Effect on Royalties for Underlying Works.--It is the intent 
of Congress that royalties payable to copyright owners of musical works 
for the public performance of their works shall not be diminished in 
any respect as a result of the rights granted in section 106(6).''.

SEC. 3. APPLICATION TO SECTIONS 112(E) AND 114(F) SOUND RECORDING 
              PROCEEDINGS.

    (a) Proceedings Not Affected.--Neither section 2 of this Act nor 
the amendment made to section 114(i) of title 17, United States Code, 
by such section 2 shall be taken into account in any proceeding to set 
or adjust the rates and fees payable for the use of sound recordings 
under section 112(e) or section 114(f) of such title that is pending 
on, or commenced on or after, the date of the enactment of this Act.
    (b) Decisions and Precedents Not Affected.--Neither section 2 of 
this Act nor the amendment made to section 114(i) of title 17, United 
States Code, by such section 2 shall have any effect upon the 
decisions, or the precedents established or relied upon, in any 
proceeding to set or adjust the rates and fees payable for the use of 
sound recordings under section 112(e) or section 114(f) of such title 
before the date of the enactment of this Act.

SEC. 4. FUNCTIONS OF COPYRIGHT ROYALTY JUDGES.

    (a) In General.--Section 801(b)(1) of title 17, United States Code, 
is amended by striking ``The rates applicable under sections 
114(f)(1)(B), 115, and 116 shall be calculated to achieve the following 
objectives'' and inserting ``The rates applicable under sections 
114(f)(1)(B) and 116 shall be calculated to achieve the following 
objectives''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to any proceeding that is pending on, or commenced on or after, 
the date of the enactment of this Act.

SEC. 5. ROYALTY PAYABLE UNDER COMPULSORY LICENSE.

    (a) In General.--Section 115(c)(3)(D) of title 17, United States 
Code, is amended by striking ``In addition to the objectives set forth 
in section 801(b)(1), in establishing such rates and terms, the 
Copyright Royalty Judges may consider rates and terms under voluntary 
license agreements described in subparagraphs (B) and (C).'' and 
inserting the following: ``The Copyright Royalty Judges shall establish 
rates and terms that most clearly represent the rates and terms that 
would have been negotiated in the marketplace between a willing buyer 
and a willing seller. In establishing such rates and terms, the 
Copyright Royalty Judges shall base their decision on marketplace, 
economic, and use information presented by the participants. In 
establishing such rates and terms, the Copyright Royalty Judges may 
consider the rates and terms for comparable uses and comparable 
circumstances under voluntary license agreements.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to any proceeding that is pending on, or commenced on or after, 
the date of the enactment of this Act.
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