American Music Fairness Act of 2025This 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.
The bill impacts current state and federal laws governing music rights and broadcasting by introducing standardized royalty rates for radio stations, especially benefiting smaller broadcasters. For instance, specific fees have been set for terrestrial stations based on their revenue, which allows smaller entities to thrive while ensuring artists receive fair compensation. These changes aim to create a more balanced market for music usage, supporting both artists and smaller radio stations that may struggle under current financial obligations.
House Bill 861, titled the American Music Fairness Act of 2025, aims to amend Title 17 of the United States Code focusing on the treatment of radio stations and artists concerning the use of sound recordings. This bill addresses the ongoing issue of unequal compensation that artists receive for the use of their music by terrestrial and online radio stations. By aligning terrestrial broadcasts with existing performance rights for digital platforms, the act seeks to establish a more equitable framework for royalty payments across all audio transmissions.
Notable points of contention surrounding HB 861 include concerns from small broadcasters about the financial implications of increased royalty rates. While the act provides protections and reduced fees for smaller stations, critics argue that any additional regulatory burden could threaten their viability. Additionally, there are apprehensions regarding how these changes will be enforced and whether they could inadvertently lead to less music diversity on air if stations become more selective in their song choices due to financial constraints. Furthermore, there is a dialogue about ensuring the rights of songwriters are preserved, as noted in the provisions meant to protect their existing royalties and performance rights.