American Music Fairness Act of 2022
This bill establishes that the copyright holder of a sound recording shall have the exclusive right to perform the sound recording through an audio transmission and addresses other related issues. (Currently, the public performance right only covers performances through a digital audio transmission in certain instances, which means that nonsubscription terrestrial radio stations generally do not have to secure a license to publicly perform a copyright-protected sound recording.)
Under the bill, a nonsubscription broadcast transmission must have a license to publicly perform such sound recordings. The Copyright Royalty Board must periodically determine the royalty rates for such a license. When determining the rates, the board must base its decision on certain information presented by the parties, including the radio stations' effect on other streams of revenue related to the sound recordings.
Terrestrial broadcast stations (and the owners of such stations) that fall below certain revenue thresholds may pay certain flat fees, instead of the board-established rate, for a license to publicly perform copyright-protected sound recordings.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4130 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4130
To amend title 17, United States Code, to provide fair treatment of
radio stations and artists for the use of sound recordings, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 24, 2021
Mr. Deutch (for himself, Mr. Issa, Mr. Nadler, Mr. McClintock, Ms.
Bass, Mrs. Harshbarger, and Ms. Chu) introduced the following bill;
which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 17, United States Code, to provide fair treatment of
radio stations and artists for the use of sound recordings, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Music
Fairness Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Equitable treatment for terrestrial broadcasts and internet
services.
Sec. 3. Timing of proceedings under sections 112(e) and 114(f).
Sec. 4. Special protection for small broadcasters.
Sec. 5. Distribution of certain royalties.
Sec. 6. No harmful effects on songwriters.
Sec. 7. Value of promotion taken into account.
SEC. 2. EQUITABLE TREATMENT FOR TERRESTRIAL BROADCASTS AND INTERNET
SERVICES.
(a) Performance Right Applicable to Audio Transmissions
Generally.--Paragraph (6) of section 106 of title 17, United States
Code, is amended to read as follows:
``(6) in the case of sound recordings, to perform the
copyrighted work publicly by means of an audio transmission.''.
(b) Inclusion of Terrestrial Broadcasts in Existing Performance
Right and Statutory License.--Section 114(d)(1) of title 17, United
States Code, is amended--
(1) in the matter preceding subparagraph (A), by striking
``a digital'' and inserting ``an'';
(2) by striking subparagraph (A);
(3) by redesignating subparagraphs (B) and (C) as (A) and
(B), respectively; and
(4) in subparagraph (A), as redesignated by paragraph (3),
by striking ``nonsubscription'' and inserting ``licensed
nonsubscription''.
(c) Technical and Conforming Amendments.--
(1) Definition.--Section 101 of title 17, United States
Code, is amended by inserting after the definition of
``architectural work'' the following:
``An `audio transmission' is a transmission of a sound recording,
whether in a digital, analog, or other format. This term does not
include the transmission of any audiovisual work.''.
(2) Conforming removal of digital.--Title 17, United States
Code, is amended--
(A) in section 112(e)(8), by striking ``a digital
audio transmission'' and inserting ``an audio
transmission'';
(B) in section 114--
(i) in subsection (d)--
(I) in paragraph (2)--
(aa) in the matter
preceding subparagraph (A), by
striking ``subscription
digital'' and inserting
``subscription''; and
(bb) in subparagraph
(C)(viii), by striking
``digital signal'' and
inserting ``signal''; and
(II) in paragraph (4)--
(aa) in subparagraph (A),
by striking ``a digital audio
transmission'' and inserting
``an audio transmission''; and
(bb) in subparagraph
(B)(i), by striking ``a digital
audio transmission'' and
inserting ``an audio
transmission'';
(ii) in subsection (g)(2)(A), by striking
``a digital'' and inserting ``an''; and
(iii) in subsection (j)--
(I) in paragraph (6)--
(aa) by striking
``digital''; and
(bb) by striking
``retransmissions of broadcast
transmissions'' and inserting
``broadcast transmissions and
retransmissions of broadcast
transmissions''; and
(II) in paragraph (8), by striking
``subscription digital'' and inserting
``subscription''; and
(C) in section 1401--
(i) in subsection (b), by striking ``a
digital audio'' and inserting ``an audio''; and
(ii) in subsection (d)--
(I) in paragraph (1), by striking
``a digital audio'' and inserting ``an
audio'';
(II) in paragraph (2)(A), by
striking ``a digital audio'' and
inserting ``an audio''; and
(III) in paragraph (4)(A), by
striking ``a digital audio'' and
inserting ``an audio''.
SEC. 3. TIMING OF PROCEEDINGS UNDER SECTIONS 112(E) AND 114(F).
Paragraph (3) of section 804(b) of title 17, United States Code, is
amended by adding at the end the following new subparagraph:
``(D) A proceeding under this chapter shall be
commenced as soon as practicable after the date of the
enactment of this subparagraph to determine royalty
rates and terms for nonsubscription broadcast
transmissions, to be effective for the period beginning
on such date of enactment, and ending on December 31,
2028. Any payment due under section 114(f)(1)(D) shall
not be due until the due date of the first royalty
payments for nonsubscription broadcast transmissions
that are determined, after the date of the enactment of
this subparagraph, by the Copyright Royalty Judges.
Thereafter, such proceeding shall be repeated in each
subsequent fifth calendar year.''.
SEC. 4. SPECIAL PROTECTION FOR SMALL BROADCASTERS.
(a) Specified Royalty Fees.--Section 114(f)(1) of title 17, United
States Code, is amended by inserting at the end the following new
subparagraph:
``(D)(i) Notwithstanding the provisions of
subparagraphs (A) through (C), the royalty rate shall
be as follows for nonsubscription broadcast
transmissions by each individual terrestrial broadcast
station licensed as such by the Federal Communications
Commission that satisfies the conditions in clause
(ii)--
``(I) $10 per calendar year, in the case of
nonsubscription broadcast transmissions by a
broadcast station that generated revenue in the
immediately preceding calendar year of less
than $100,000;
``(II) $100 per calendar year, in the case
of nonsubscription broadcast transmissions by a
broadcast station that is a public broadcasting
entity as defined in section 118(f) and
generated revenue in the immediately preceding
calendar year of $100,000 or more, but less
than $1,500,000; and
``(III) $500 per calendar year, in the case
of nonsubscription broadcast transmissions by a
broadcast station that is not a public
broadcasting entity as defined in section
118(f) and generated revenue in the immediately
preceding calendar year of $100,000 or more,
but less than $1,500,000.
``(ii) An individual terrestrial broadcast station
licensed as such by the Federal Communications
Commission is eligible for a royalty rate set forth in
clause (i) if--
``(I) the revenue from the operation of
that individual station was less than
$1,500,000 during the immediately preceding
calendar year;
``(II) the aggregate revenue of the owner
and operator of the broadcast station and any
person directly or indirectly controlling,
controlled by, or under common control with
such owner or operator, from any source, was
less than $10,000,000 during the immediately
preceding calendar year; and
``(III) the owner or operator of the
broadcast station provides to the nonprofit
collective designated by the Copyright Royalty
Judges to distribute receipts from the
licensing of transmissions in accordance with
subsection (f), by no later than January 31 of
the relevant calendar year, a written and
signed certification of the station's
eligibility under this clause and the
applicable subclause of clause (i), in
accordance with requirements the Copyright
Royalty Judges shall prescribe by regulation.
``(iii) For purposes of clauses (i) and (ii)--
``(I) revenue shall be calculated in
accordance with generally accepted accounting
principles;
``(II) revenue generated by a terrestrial
broadcast station shall include all revenue
from the operation of the station, from any
source; and
``(III) in the case of affiliated broadcast
stations, revenue shall be allocated reasonably
to individual stations associated with the
revenue.
``(iv) The royalty rates specified in clause (i)
shall not be admissible as evidence or otherwise taken
into account in determining royalty rates in a
proceeding under chapter 8, or in any other
administrative, judicial, or other Federal Government
proceeding involving the setting or adjustment of the
royalties payable for the public performance or
reproduction in ephemeral phonorecords or copies of
sound recordings, the determination of terms or
conditions related thereto, or the establishment of
notice or recordkeeping requirements.''.
(b) Technical Correction.--Section 118(f) of title 17, United
States Code, is amended by striking ``section 397 of title 47'' and
inserting ``section 397 of the Communications Act of 1934 (47 U.S.C.
397)''.
SEC. 5. DISTRIBUTION OF CERTAIN ROYALTIES.
Section 114(g) of title 17, United States Code, is amended--
(1) in paragraph (1), by inserting ``or in the case of a
transmission to which paragraph (5) applies'' after ``this
section'';
(2) by redesignating paragraphs (5), (6), and (7) as (6),
(7), and (8), respectively; and
(3) by inserting after paragraph (4) the following new
paragraph:
``(5) Notwithstanding paragraph (1), to the extent that a
license granted by the copyright owner of a sound recording to
a transmitting entity eligible for a statutory license under
subsection (d)(2) extends to such entity's transmissions
otherwise licensable under a statutory license in accordance
with subsection (f), such entity shall pay to the collective
designated to distribute statutory licensing receipts from the
licensing of transmissions in accordance with subsection (f),
50 percent of the total royalties that such entity is required,
pursuant to the applicable license agreement, to pay for such
transmissions otherwise licensable under a statutory license in
accordance with subsection (f). That collective shall
distribute such payments in proportion to the distributions
provided in subparagraphs (B) through (D) of paragraph (2), and
such payments shall be the only payments to which featured and
nonfeatured artists are entitled by virtue of such
transmissions under the direct license with such entity.''.
SEC. 6. NO HARMFUL EFFECTS ON SONGWRITERS.
Nothing in this Act, or the amendments made by this Act, shall
adversely affect in any respect the public performance rights of or
royalties payable to songwriters or copyright owners of musical works.
SEC. 7. VALUE OF PROMOTION TAKEN INTO ACCOUNT.
Pursuant to section 114(f)(1)(B) of title 17, United States Code,
in determining rates and terms for terrestrial broadcast radio stations
under this Act, and the amendments made by this Act, the Copyright
Royalty Judges shall base their decision on economic, competitive, and
programming information presented by the parties, including whether use
of the station's service may substitute for or may promote the sales of
phonorecords or otherwise may interfere with or may enhance the sound
recording copyright owner's other streams of revenue from the copyright
owner's sound recordings.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
ASSUMING FIRST SPONSORSHIP - Mr. Nadler asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 4130, a bill originally introduced by Representative Deutch, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
Reported (Amended) by the Committee on Judiciary. H. Rept. 117-693.
Reported (Amended) by the Committee on Judiciary. H. Rept. 117-693.
Placed on the Union Calendar, Calendar No. 509.
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