| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 861 |
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| 5 | 5 | | To amend title 17, United States Code, to provide fair treatment of radio |
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| 6 | 6 | | stations and artists for the use of sound recordings, and for other purposes. |
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| 7 | 7 | | IN THE HOUSE OF REPRESENTATIVES |
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| 8 | 8 | | JANUARY31, 2025 |
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| 9 | 9 | | Mr. I |
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| 10 | 10 | | SSA(for himself, Mr. NADLER, Mr. GREENof Tennessee, Mr. MCCLIN- |
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| 11 | 11 | | TOCK, and Mr. LIEU) introduced the following bill; which was referred |
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| 12 | 12 | | to the Committee on the Judiciary |
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| 13 | 13 | | A BILL |
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| 14 | 14 | | To amend title 17, United States Code, to provide fair treat- |
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| 15 | 15 | | ment of radio stations and artists for the use of sound |
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| 16 | 16 | | recordings, and for other purposes. |
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| 17 | 17 | | Be it enacted by the Senate and House of Representa-1 |
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| 18 | 18 | | tives of the United States of America in Congress assembled, 2 |
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| 19 | 19 | | SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 |
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| 20 | 20 | | (a) S |
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| 21 | 21 | | HORTTITLE.—This Act may be cited as the 4 |
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| 22 | 22 | | ‘‘American Music Fairness Act of 2025’’. 5 |
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| 23 | 23 | | (b) T |
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| 24 | 24 | | ABLE OFCONTENTS.—The table of contents for 6 |
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| 25 | 25 | | this Act is as follows: 7 |
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| 26 | 26 | | Sec. 1. Short title; table of contents. |
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| 27 | 27 | | Sec. 2. Equitable treatment for terrestrial broadcasts and internet services. |
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| 28 | 28 | | Sec. 3. Timing of proceedings under sections 112(e) and 114(f). |
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| 29 | 29 | | Sec. 4. Special protection for small broadcasters. |
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| 32 | 32 | | •HR 861 IH |
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| 33 | 33 | | Sec. 5. Distribution of certain royalties. |
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| 34 | 34 | | Sec. 6. No harmful effects on songwriters. |
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| 35 | 35 | | Sec. 7. Value of promotion taken into account. |
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| 36 | 36 | | SEC. 2. EQUITABLE TREATMENT FOR TERRESTRIAL |
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| 37 | 37 | | 1 |
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| 38 | 38 | | BROADCASTS AND INTERNET SERVICES. 2 |
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| 39 | 39 | | (a) P |
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| 40 | 40 | | ERFORMANCE RIGHTAPPLICABLE TOAUDIO 3 |
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| 41 | 41 | | T |
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| 42 | 42 | | RANSMISSIONSGENERALLY.—Paragraph (6) of section 4 |
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| 43 | 43 | | 106 of title 17, United States Code, is amended to read 5 |
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| 44 | 44 | | as follows: 6 |
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| 45 | 45 | | ‘‘(6) in the case of sound recordings, to perform 7 |
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| 46 | 46 | | the copyrighted work publicly by means of an audio 8 |
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| 47 | 47 | | transmission.’’. 9 |
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| 48 | 48 | | (b) I |
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| 49 | 49 | | NCLUSION OF TERRESTRIALBROADCASTS IN 10 |
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| 50 | 50 | | E |
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| 51 | 51 | | XISTINGPERFORMANCE RIGHT ANDSTATUTORYLI-11 |
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| 52 | 52 | | CENSE.—Section 114(d)(1) of title 17, United States 12 |
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| 53 | 53 | | Code, is amended— 13 |
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| 54 | 54 | | (1) in the matter preceding subparagraph (A), 14 |
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| 55 | 55 | | by striking ‘‘a digital’’ and inserting ‘‘an’’; 15 |
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| 56 | 56 | | (2) by striking subparagraph (A); 16 |
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| 57 | 57 | | (3) by redesignating subparagraphs (B) and 17 |
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| 58 | 58 | | (C) as (A) and (B), respectively; and 18 |
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| 59 | 59 | | (4) in subparagraph (A), as redesignated by 19 |
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| 60 | 60 | | paragraph (3), by striking ‘‘nonsubscription’’ each 20 |
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| 61 | 61 | | place such term appears and inserting ‘‘licensed non-21 |
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| 62 | 62 | | subscription’’. 22 |
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| 63 | 63 | | (c) T |
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| 64 | 64 | | ECHNICAL ANDCONFORMINGAMENDMENTS.— 23 |
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| 68 | 68 | | (1) DEFINITION.—Section 101 of title 17, 1 |
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| 69 | 69 | | United States Code, is amended by inserting after 2 |
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| 70 | 70 | | the definition of ‘‘architectural work’’ the following: 3 |
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| 71 | 71 | | ‘‘An ‘audio transmission’ is a transmission of a sound 4 |
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| 72 | 72 | | recording, whether in a digital, analog, or other format. 5 |
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| 73 | 73 | | This term does not include the transmission of any audio-6 |
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| 74 | 74 | | visual work.’’. 7 |
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| 75 | 75 | | (2) C |
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| 76 | 76 | | ONFORMING REMOVAL OF DIGITAL .—Title 8 |
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| 77 | 77 | | 17, United States Code, is amended— 9 |
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| 78 | 78 | | (A) in section 112(e)(8), by striking ‘‘a 10 |
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| 79 | 79 | | digital audio transmission’’ and inserting ‘‘an 11 |
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| 80 | 80 | | audio transmission’’; 12 |
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| 81 | 81 | | (B) in section 114— 13 |
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| 82 | 82 | | (i) in subsection (d)— 14 |
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| 83 | 83 | | (I) in paragraph (2)— 15 |
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| 84 | 84 | | (aa) in the matter preceding 16 |
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| 85 | 85 | | subparagraph (A), by striking 17 |
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| 86 | 86 | | ‘‘subscription digital’’ and insert-18 |
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| 87 | 87 | | ing ‘‘subscription’’; and 19 |
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| 88 | 88 | | (bb) in subparagraph 20 |
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| 89 | 89 | | (C)(viii), by striking ‘‘digital sig-21 |
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| 90 | 90 | | nal’’ and inserting ‘‘signal’’; and 22 |
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| 91 | 91 | | (II) in paragraph (4)— 23 |
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| 92 | 92 | | (aa) in subparagraph (A), 24 |
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| 93 | 93 | | by striking ‘‘a digital audio 25 |
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| 97 | 97 | | transmission’’ and inserting ‘‘an 1 |
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| 98 | 98 | | audio transmission’’; and 2 |
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| 99 | 99 | | (bb) in subparagraph (B)(i), 3 |
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| 100 | 100 | | by striking ‘‘a digital audio 4 |
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| 101 | 101 | | transmission’’ and inserting ‘‘an 5 |
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| 102 | 102 | | audio transmission’’; 6 |
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| 103 | 103 | | (ii) in subsection (g)(2)(A), by strik-7 |
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| 104 | 104 | | ing ‘‘a digital’’ and inserting ‘‘an’’; and 8 |
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| 105 | 105 | | (iii) in subsection (j)— 9 |
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| 106 | 106 | | (I) in paragraph (6)— 10 |
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| 107 | 107 | | (aa) by striking ‘‘digital’’; 11 |
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| 108 | 108 | | and 12 |
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| 109 | 109 | | (bb) by striking ‘‘retrans-13 |
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| 110 | 110 | | missions of broadcast trans-14 |
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| 111 | 111 | | missions’’ and inserting ‘‘broad-15 |
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| 112 | 112 | | cast transmissions and retrans-16 |
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| 113 | 113 | | missions of broadcast trans-17 |
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| 114 | 114 | | missions’’; and 18 |
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| 115 | 115 | | (II) in paragraph (8), by striking 19 |
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| 116 | 116 | | ‘‘subscription digital’’ and inserting 20 |
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| 117 | 117 | | ‘‘subscription’’; and 21 |
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| 118 | 118 | | (C) in section 1401— 22 |
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| 119 | 119 | | (i) in subsection (b), by striking ‘‘a 23 |
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| 120 | 120 | | digital audio’’ and inserting ‘‘an audio’’; 24 |
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| 121 | 121 | | and 25 |
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| 125 | 125 | | (ii) in subsection (d)— 1 |
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| 126 | 126 | | (I) in paragraph (1), by striking 2 |
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| 127 | 127 | | ‘‘a digital audio’’ and inserting ‘‘an 3 |
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| 128 | 128 | | audio’’; 4 |
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| 129 | 129 | | (II) in paragraph (2)(A), by 5 |
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| 130 | 130 | | striking ‘‘a digital audio’’ and insert-6 |
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| 131 | 131 | | ing ‘‘an audio’’; and 7 |
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| 132 | 132 | | (III) in paragraph (4)(A), by 8 |
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| 133 | 133 | | striking ‘‘a digital audio’’ and insert-9 |
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| 134 | 134 | | ing ‘‘an audio’’. 10 |
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| 135 | 135 | | SEC. 3. TIMING OF PROCEEDINGS UNDER SECTIONS 112(e) 11 |
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| 136 | 136 | | AND 114(f). 12 |
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| 137 | 137 | | Paragraph (3) of section 804(b) of title 17, United 13 |
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| 138 | 138 | | States Code, is amended by adding at the end the fol-14 |
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| 139 | 139 | | lowing new subparagraph: 15 |
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| 140 | 140 | | ‘‘(D) A proceeding under this chapter shall 16 |
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| 141 | 141 | | be commenced as soon as practicable after the 17 |
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| 142 | 142 | | date of the enactment of this subparagraph to 18 |
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| 143 | 143 | | determine royalty rates and terms for non-19 |
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| 144 | 144 | | subscription broadcast transmissions, to be ef-20 |
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| 145 | 145 | | fective for the period beginning on such date of 21 |
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| 146 | 146 | | enactment, and ending on December 31, 2028. 22 |
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| 147 | 147 | | Any payment due under section 114(f)(1)(D) 23 |
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| 148 | 148 | | shall not be due until the due date of the first 24 |
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| 149 | 149 | | royalty payments for nonsubscription broadcast 25 |
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| 152 | 152 | | •HR 861 IH |
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| 153 | 153 | | transmissions that are determined, after the 1 |
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| 154 | 154 | | date of the enactment of this subparagraph, by 2 |
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| 155 | 155 | | the Copyright Royalty Judges. Thereafter, such 3 |
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| 156 | 156 | | proceeding shall be repeated in each subsequent 4 |
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| 157 | 157 | | fifth calendar year.’’. 5 |
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| 158 | 158 | | SEC. 4. SPECIAL PROTECTION FOR SMALL BROADCASTERS. 6 |
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| 159 | 159 | | (a) S |
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| 160 | 160 | | PECIFIEDROYALTYFEES.—Section 114(f)(1) 7 |
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| 161 | 161 | | of title 17, United States Code, is amended by inserting 8 |
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| 162 | 162 | | at the end the following new subparagraph: 9 |
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| 163 | 163 | | ‘‘(D)(i) Notwithstanding the provisions of 10 |
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| 164 | 164 | | subparagraphs (A) through (C), the royalty 11 |
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| 165 | 165 | | rate shall be as follows for nonsubscription 12 |
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| 166 | 166 | | broadcast transmissions by each individual ter-13 |
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| 167 | 167 | | restrial broadcast station licensed as such by 14 |
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| 168 | 168 | | the Federal Communications Commission that 15 |
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| 169 | 169 | | satisfies the conditions in clause (ii)— 16 |
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| 170 | 170 | | ‘‘(I) $10 per calendar year, in the 17 |
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| 171 | 171 | | case of nonsubscription broadcast trans-18 |
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| 172 | 172 | | missions by a broadcast station that gen-19 |
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| 173 | 173 | | erated revenue in the immediately pre-20 |
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| 174 | 174 | | ceding calendar year of less than 21 |
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| 175 | 175 | | $100,000; 22 |
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| 176 | 176 | | ‘‘(II) $100 per calendar year, in the 23 |
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| 177 | 177 | | case of nonsubscription broadcast trans-24 |
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| 178 | 178 | | missions by a broadcast station that is a 25 |
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| 182 | 182 | | public broadcasting entity as defined in 1 |
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| 183 | 183 | | section 118(f) and generated revenue in 2 |
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| 184 | 184 | | the immediately preceding calendar year of 3 |
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| 185 | 185 | | $100,000 or more, but less than 4 |
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| 186 | 186 | | $1,500,000; and 5 |
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| 187 | 187 | | ‘‘(III) $500 per calendar year, in the 6 |
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| 188 | 188 | | case of nonsubscription broadcast trans-7 |
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| 189 | 189 | | missions by a broadcast station that is not 8 |
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| 190 | 190 | | a public broadcasting entity as defined in 9 |
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| 191 | 191 | | section 118(f) and generated revenue in 10 |
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| 192 | 192 | | the immediately preceding calendar year of 11 |
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| 193 | 193 | | $100,000 or more, but less than 12 |
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| 194 | 194 | | $1,500,000. 13 |
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| 195 | 195 | | ‘‘(ii) An individual terrestrial broadcast 14 |
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| 196 | 196 | | station licensed as such by the Federal Commu-15 |
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| 197 | 197 | | nications Commission is eligible for a royalty 16 |
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| 198 | 198 | | rate set forth in clause (i) if— 17 |
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| 199 | 199 | | ‘‘(I) the revenue from the operation of 18 |
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| 200 | 200 | | that individual station was less than 19 |
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| 201 | 201 | | $1,500,000 during the immediately pre-20 |
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| 202 | 202 | | ceding calendar year; 21 |
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| 203 | 203 | | ‘‘(II) the aggregate revenue of the 22 |
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| 204 | 204 | | owner and operator of the broadcast sta-23 |
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| 205 | 205 | | tion and any person directly or indirectly 24 |
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| 206 | 206 | | controlling, controlled by, or under com-25 |
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| 210 | 210 | | mon control with such owner or operator, 1 |
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| 211 | 211 | | from any source, was less than 2 |
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| 212 | 212 | | $10,000,000 during the immediately pre-3 |
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| 213 | 213 | | ceding calendar year; and 4 |
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| 214 | 214 | | ‘‘(III) the owner or operator of the 5 |
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| 215 | 215 | | broadcast station provides to the nonprofit 6 |
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| 216 | 216 | | collective designated by the Copyright Roy-7 |
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| 217 | 217 | | alty Judges to distribute receipts from the 8 |
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| 218 | 218 | | licensing of transmissions in accordance 9 |
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| 219 | 219 | | with subsection (f), by no later than Janu-10 |
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| 220 | 220 | | ary 31 of the relevant calendar year, a 11 |
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| 221 | 221 | | written and signed certification of the sta-12 |
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| 222 | 222 | | tion’s eligibility under this clause and the 13 |
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| 223 | 223 | | applicable subclause of clause (i), in ac-14 |
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| 224 | 224 | | cordance with requirements the Copyright 15 |
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| 225 | 225 | | Royalty Judges shall prescribe by regula-16 |
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| 226 | 226 | | tion. 17 |
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| 227 | 227 | | ‘‘(iii) For purposes of clauses (i) and (ii)— 18 |
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| 228 | 228 | | ‘‘(I) revenue shall be calculated in ac-19 |
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| 229 | 229 | | cordance with generally accepted account-20 |
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| 230 | 230 | | ing principles; 21 |
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| 231 | 231 | | ‘‘(II) revenue generated by a terres-22 |
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| 232 | 232 | | trial broadcast station shall include all rev-23 |
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| 233 | 233 | | enue from the operation of the station, 24 |
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| 234 | 234 | | from any source; and 25 |
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| 238 | 238 | | ‘‘(III) in the case of affiliated broad-1 |
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| 239 | 239 | | cast stations, revenue shall be allocated 2 |
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| 240 | 240 | | reasonably to individual stations associated 3 |
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| 241 | 241 | | with the revenue. 4 |
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| 242 | 242 | | ‘‘(iv) The royalty rates specified in clause 5 |
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| 243 | 243 | | (i) shall not be admissible as evidence or other-6 |
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| 244 | 244 | | wise taken into account in determining royalty 7 |
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| 245 | 245 | | rates in a proceeding under chapter 8, or in any 8 |
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| 246 | 246 | | other administrative, judicial, or other Federal 9 |
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| 247 | 247 | | Government proceeding involving the setting or 10 |
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| 248 | 248 | | adjustment of the royalties payable for the pub-11 |
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| 249 | 249 | | lic performance or reproduction in ephemeral 12 |
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| 250 | 250 | | phonorecords or copies of sound recordings, the 13 |
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| 251 | 251 | | determination of terms or conditions related 14 |
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| 252 | 252 | | thereto, or the establishment of notice or rec-15 |
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| 253 | 253 | | ordkeeping requirements.’’. 16 |
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| 254 | 254 | | (b) T |
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| 255 | 255 | | ECHNICALCORRECTION.—Section 118(f) of 17 |
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| 256 | 256 | | title 17, United States Code, is amended by striking ‘‘sec-18 |
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| 257 | 257 | | tion 397 of title 47’’ and inserting ‘‘section 397 of the 19 |
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| 258 | 258 | | Communications Act of 1934 (47 U.S.C. 397)’’. 20 |
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| 259 | 259 | | SEC. 5. DISTRIBUTION OF CERTAIN ROYALTIES. 21 |
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| 260 | 260 | | Section 114(g) of title 17, United States Code, is 22 |
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| 261 | 261 | | amended— 23 |
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| 265 | 265 | | (1) in paragraph (1), by inserting ‘‘or in the 1 |
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| 266 | 266 | | case of a transmission to which paragraph (5) ap-2 |
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| 267 | 267 | | plies’’ after ‘‘this section’’; 3 |
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| 268 | 268 | | (2) by redesignating paragraphs (5), (6), and 4 |
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| 269 | 269 | | (7) as (6), (7), and (8), respectively; and 5 |
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| 270 | 270 | | (3) by inserting after paragraph (4) the fol-6 |
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| 271 | 271 | | lowing new paragraph: 7 |
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| 272 | 272 | | ‘‘(5) Notwithstanding paragraph (1), to the ex-8 |
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| 273 | 273 | | tent that a license granted by the copyright owner 9 |
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| 274 | 274 | | of a sound recording to a transmitting entity eligible 10 |
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| 275 | 275 | | for a statutory license under subsection (d)(2) ex-11 |
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| 276 | 276 | | tends to such entity’s transmissions otherwise licens-12 |
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| 277 | 277 | | able under a statutory license in accordance with 13 |
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| 278 | 278 | | subsection (f), such entity shall pay to the collective 14 |
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| 279 | 279 | | designated to distribute statutory licensing receipts 15 |
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| 280 | 280 | | from the licensing of transmissions in accordance 16 |
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| 281 | 281 | | with subsection (f), 50 percent of the total royalties 17 |
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| 282 | 282 | | that such entity is required, pursuant to the applica-18 |
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| 283 | 283 | | ble license agreement, to pay for such transmissions 19 |
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| 284 | 284 | | otherwise licensable under a statutory license in ac-20 |
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| 285 | 285 | | cordance with subsection (f). That collective shall 21 |
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| 286 | 286 | | distribute such payments in proportion to the dis-22 |
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| 287 | 287 | | tributions provided in subparagraphs (B) through 23 |
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| 288 | 288 | | (D) of paragraph (2), and such payments shall be 24 |
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| 289 | 289 | | the only payments to which featured and nonfea-25 |
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| 293 | 293 | | tured artists are entitled by virtue of such trans-1 |
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| 294 | 294 | | missions under the direct license with such entity.’’. 2 |
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| 295 | 295 | | SEC. 6. NO HARMFUL EFFECTS ON SONGWRITERS. 3 |
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| 296 | 296 | | Nothing in this Act, or the amendments made by this 4 |
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| 297 | 297 | | Act, shall adversely affect in any respect the public per-5 |
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| 298 | 298 | | formance rights of or royalties payable to songwriters or 6 |
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| 299 | 299 | | copyright owners of musical works. 7 |
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| 300 | 300 | | SEC. 7. VALUE OF PROMOTION TAKEN INTO ACCOUNT. 8 |
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| 301 | 301 | | Pursuant to section 114(f)(1)(B) of title 17, United 9 |
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| 302 | 302 | | States Code, in determining rates and terms for terrestrial 10 |
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| 303 | 303 | | broadcast radio stations under this Act, and the amend-11 |
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| 304 | 304 | | ments made by this Act, the Copyright Royalty Judges 12 |
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| 305 | 305 | | shall base their decision on economic, competitive, and 13 |
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| 306 | 306 | | programming information presented by the parties, includ-14 |
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| 307 | 307 | | ing whether use of the station’s service may substitute for 15 |
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| 308 | 308 | | or may promote the sales of phonorecords or otherwise 16 |
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| 309 | 309 | | may interfere with or may enhance the sound recording 17 |
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| 310 | 310 | | copyright owner’s other streams of revenue from the copy-18 |
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| 311 | 311 | | right owner’s sound recordings. 19 |
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| 312 | 312 | | Æ |
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