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.
One of the core impacts of SB326 would be on how small radio broadcasters operate financially. The legislation proposes lower royalty rates for smaller broadcasters, specifically those with operating revenues under $1.5 million. This tiered approach is designed to ensure greater sustainability for these stations, allowing them to compete more effectively in an industry dominated by larger entities. The bill contains provisions to verify revenues and operational status that broadcasters must adhere to in order to qualify for these reduced rates. Such changes are expected to bolster local stations and maintain diversity in broadcasting, which is essential for community engagement.
SB326, known as the American Music Fairness Act, seeks to amend title 17 of the United States Code in order to provide fair treatment for terrestrial radio stations and artists regarding the use of sound recordings. A significant aspect of the bill is the establishment of a performance right for all audio transmissions, which would include both terrestrial broadcasts and internet services. This new right requires license fees to be paid to artists whose works are performed, effectively expanding their copyright protections beyond current limitations. The bill also aims to set equitable royalty rates for different categories of broadcasters.
Despite the intended support for small broadcasters, the bill has not been without controversy. Industry stakeholders, such as larger broadcasters and some lobby groups, have raised concerns that the new fees could place an additional financial burden on them. They argue that the implementation of new performance rights may lead to higher costs that could be passed on to consumers. Moreover, critics are apprehensive about the potential imposition on their operations and profitability, suggesting that the bill could inadvertently harm the very platforms it seeks to support. Balancing the interests of artists with the operational realities of broadcasters continues to be a significant point of contention during discussions about this bill.