American Music Fairness Act
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. (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 get 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 119th Congress]
[From the U.S. Government Publishing Office]
[S. 326 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 326
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 SENATE OF THE UNITED STATES
January 30, 2025
Mrs. Blackburn (for herself, Mr. Padilla, Mr. Tillis, and Mr. Booker)
introduced the following bill; which was read twice and 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
subparagraphs (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 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)'' in
each place it appears.
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
paragraphs (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 Senate
Read twice and referred to the Committee on the Judiciary.
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