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American Music Fairness Act
12/15/2023, 4:05 PM
Summary of Bill S 253
Under the current system, AM/FM radio stations are not required to pay royalties to artists and songwriters for playing their music. This has been a point of contention for many in the music industry, who argue that this lack of compensation is unfair and outdated.
The American Music Fairness Act seeks to rectify this issue by requiring AM/FM radio stations to pay royalties to artists and songwriters for the music they play. This would bring the US in line with many other countries that already have similar laws in place. Supporters of the bill argue that it is necessary to ensure that music creators are fairly compensated for their work, especially in an era where streaming services have become the primary way that people consume music. They believe that this legislation will help to level the playing field and provide much-needed income to artists and songwriters. Opponents of the bill, however, argue that it could place an undue burden on AM/FM radio stations, many of which are already struggling financially. They also raise concerns about how the royalties would be calculated and distributed, and whether smaller artists and songwriters would benefit as much as larger, more established ones. Overall, the American Music Fairness Act is a complex piece of legislation that seeks to address a longstanding issue in the music industry. Its fate in Congress remains uncertain, but it has sparked an important debate about the rights of music creators and the future of the industry.
Congressional Summary of S 253
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.



