What This Bill Does
This bill changes the rules about paying artists when radio stations play songs. It makes radio stations pay fees to artists for music they broadcast, similar to what happens with online music services. The bill also sets special lower fees for small radio stations.
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Who It Affects
- Terrestrial radio stations (traditional AM/FM radio broadcasters)
- Sound recording artists and copyright owners
- Internet music streaming services
- Small broadcasters with less than $1.5 million in annual revenue
- Public broadcasting entities
- The Copyright Royalty Judges (the officials who set music licensing rates)
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Key Provisions
- Radio stations must now pay performance royalties (a fee to artists) for broadcasting sound recordings, with the payment method determined by copyright officials (Sec. 2)
- Small radio stations with less than $100,000 in annual revenue pay only $10 per year, public broadcasters between $100,000-$1.5 million pay $100 per year, and other stations in that range pay $500 per year (Sec. 4)
- The Copyright Royalty Judges must start setting royalty rates and terms for radio stations as soon as possible, effective through December 31, 2028, and repeat this process every five years afterward (Sec. 3)
- When a radio station has both a direct license with a copyright owner and uses statutory licensing, it must pay 50 percent of required royalties to the collective organization that distributes these payments (Sec. 5)
- Copyright Royalty Judges must consider whether radio broadcasts help or hurt sales of music when deciding on payment rates (Sec. 7)
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What Changes
Radio stations that currently do not pay performance royalties to artists will now be required to pay these fees. The bill rewrites copyright law to include radio broadcasts in the performance rights rules that already apply to digital music services. Small broadcasters receive significant discounts compared to larger stations. Radio stations must provide written proof of their eligibility for reduced fees each January.
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Important Definitions
An "audio transmission" means the broadcast of a sound recording in any format (digital, analog, or other), but does not include broadcasts that contain video.
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Effective Date
The bill states proceedings should begin "as soon as practicable after the date of enactment," but no specific effective date is provided for when radio stations must begin paying royalties. The royalty rates set by the Copyright Royalty Judges will be effective through December 31, 2028.
I
118TH CONGRESS
1ST SESSION
H. R. 791
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 HOUSE OF REPRESENTATIVES
FEBRUARY 2, 2023
Mr. ISSA (for himself, Mr. NADLER, Mr. LIEU, and Mr. MCCLINTOCK) intro-
duced the following bill; which was referred to the Committee on the Ju-
diciary
A BILL
To amend title 17, United States Code, to provide fair treat-
ment of radio stations and artists for the use of sound
recordings, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
3
(a) SHORT TITLE.—This Act may be cited as the
4
‘‘American Music Fairness Act of 2023’’.
5
(b) TABLE OF CONTENTS.—The table of contents for
6
this Act is as follows:
7
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.
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•HR 791 IH
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
1
BROADCASTS AND INTERNET SERVICES.
2
(a) PERFORMANCE RIGHT APPLICABLE TO AUDIO
3
TRANSMISSIONS GENERALLY.—Paragraph (6) of section
4
106 of title 17, United States Code, is amended to read
5
as follows:
6
‘‘(6) in the case of sound recordings, to perform
7
the copyrighted work publicly by means of an audio
8
transmission.’’.
9
(b) INCLUSION OF TERRESTRIAL BROADCASTS IN
10
EXISTING PERFORMANCE RIGHT AND STATUTORY LI-
11
CENSE.—Section 114(d)(1) of title 17, United States
12
Code, is amended—
13
(1) in the matter preceding subparagraph (A),
14
by striking ‘‘a digital’’ and inserting ‘‘an’’;
15
(2) by striking subparagraph (A);
16
(3) by redesignating subparagraphs (B) and
17
(C) as (A) and (B), respectively; and
18
(4) in subparagraph (A), as redesignated by
19
paragraph (3), by striking ‘‘nonsubscription’’ each
20
place such term appears and inserting ‘‘licensed non-
21
subscription’’.
22
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
23
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•HR 791 IH
(1) DEFINITION.—Section 101 of title 17,
1
United States Code, is amended by inserting after
2
the definition of ‘‘architectural work’’ the following:
3
‘‘An ‘audio transmission’ is a transmission of a sound
4
recording, whether in a digital, analog, or other format.
5
This term does not include the transmission of any audio-
6
visual work.’’.
7
(2) CONFORMING REMOVAL OF DIGITAL.—Title
8
17, United States Code, is amended—
9
(A) in section 112(e)(8), by striking ‘‘a
10
digital audio transmission’’ and inserting ‘‘an
11
audio transmission’’;
12
(B) in section 114—
13
(i) in subsection (d)—
14
(I) in paragraph (2)—
15
(aa) in the matter preceding
16
subparagraph (A), by striking
17
‘‘subscription digital’’ and insert-
18
ing ‘‘subscription’’; and
19
(bb)
in
subparagraph
20
(C)(viii), by striking ‘‘digital sig-
21
nal’’ and inserting ‘‘signal’’; and
22
(II) in paragraph (4)—
23
(aa) in subparagraph (A),
24
by striking ‘‘a digital audio
25
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4
•HR 791 IH
transmission’’ and inserting ‘‘an
1
audio transmission’’; and
2
(bb) in subparagraph (B)(i),
3
by striking ‘‘a digital audio
4
transmission’’ and inserting ‘‘an
5
audio transmission’’;
6
(ii) in subsection (g)(2)(A), by strik-
7
ing ‘‘a digital’’ and inserting ‘‘an’’; and
8
(iii) in subsection (j)—
9
(I) in paragraph (6)—
10
(aa) by striking ‘‘digital’’;
11
and
12
(bb) by striking ‘‘retrans-
13
missions
of
broadcast
trans-
14
missions’’ and inserting ‘‘broad-
15
cast transmissions and retrans-
16
missions
of
broadcast
trans-
17
missions’’; and
18
(II) in paragraph (8), by striking
19
‘‘subscription digital’’ and inserting
20
‘‘subscription’’; and
21
(C) in section 1401—
22
(i) in subsection (b), by striking ‘‘a
23
digital audio’’ and inserting ‘‘an audio’’;
24
and
25
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5
•HR 791 IH
(ii) in subsection (d)—
1
(I) in paragraph (1), by striking
2
‘‘a digital audio’’ and inserting ‘‘an
3
audio’’;
4
(II) in paragraph (2)(A), by
5
striking ‘‘a digital audio’’ and insert-
6
ing ‘‘an audio’’; and
7
(III) in paragraph (4)(A), by
8
striking ‘‘a digital audio’’ and insert-
9
ing ‘‘an audio’’.
10
SEC. 3. TIMING OF PROCEEDINGS UNDER SECTIONS 112(e)
11
AND 114(f).
12
Paragraph (3) of section 804(b) of title 17, United
13
States Code, is amended by adding at the end the fol-
14
lowing new subparagraph:
15
‘‘(D) A proceeding under this chapter shall
16
be commenced as soon as practicable after the
17
date of the enactment of this subparagraph to
18
determine royalty rates and terms for non-
19
subscription broadcast transmissions, to be ef-
20
fective for the period beginning on such date of
21
enactment, and ending on December 31, 2028.
22
Any payment due under section 114(f)(1)(D)
23
shall not be due until the due date of the first
24
royalty payments for nonsubscription broadcast
25
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6
•HR 791 IH
transmissions that are determined, after the
1
date of the enactment of this subparagraph, by
2
the Copyright Royalty Judges. Thereafter, such
3
proceeding shall be repeated in each subsequent
4
fifth calendar year.’’.
5
SEC. 4. SPECIAL PROTECTION FOR SMALL BROADCASTERS.
6
(a) SPECIFIED ROYALTY FEES.—Section 114(f)(1)
7
of title 17, United States Code, is amended by inserting
8
at the end the following new subparagraph:
9
‘‘(D)(i) Notwithstanding the provisions of
10
subparagraphs (A) through (C), the royalty
11
rate shall be as follows for nonsubscription
12
broadcast transmissions by each individual ter-
13
restrial broadcast station licensed as such by
14
the Federal Communications Commission that
15
satisfies the conditions in clause (ii)—
16
‘‘(I) $10 per calendar year, in the
17
case of nonsubscription broadcast trans-
18
missions by a broadcast station that gen-
19
erated revenue in the immediately pre-
20
ceding
calendar
year
of
less
than
21
$100,000;
22
‘‘(II) $100 per calendar year, in the
23
case of nonsubscription broadcast trans-
24
missions by a broadcast station that is a
25
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7
•HR 791 IH
public broadcasting entity as defined in
1
section 118(f) and generated revenue in
2
the immediately preceding calendar year of
3
$100,000
or
more,
but
less
than
4
$1,500,000; and
5
‘‘(III) $500 per calendar year, in the
6
case of nonsubscription broadcast trans-
7
missions by a broadcast station that is not
8
a public broadcasting entity as defined in
9
section 118(f) and generated revenue in
10
the immediately preceding calendar year of
11
$100,000
or
more,
but
less
than
12
$1,500,000.
13
‘‘(ii) An individual terrestrial broadcast
14
station licensed as such by the Federal Commu-
15
nications Commission is eligible for a royalty
16
rate set forth in clause (i) if—
17
‘‘(I) the revenue from the operation of
18
that individual station was less than
19
$1,500,000 during the immediately pre-
20
ceding calendar year;
21
‘‘(II) the aggregate revenue of the
22
owner and operator of the broadcast sta-
23
tion and any person directly or indirectly
24
controlling, controlled by, or under com-
25
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8
•HR 791 IH
mon control with such owner or operator,
1
from
any
source,
was
less
than
2
$10,000,000 during the immediately pre-
3
ceding calendar year; and
4
‘‘(III) the owner or operator of the
5
broadcast station provides to the nonprofit
6
collective designated by the Copyright Roy-
7
alty Judges to distribute receipts from the
8
licensing of transmissions in accordance
9
with subsection (f), by no later than Janu-
10
ary 31 of the relevant calendar year, a
11
written and signed certification of the sta-
12
tion’s eligibility under this clause and the
13
applicable subclause of clause (i), in ac-
14
cordance with requirements the Copyright
15
Royalty Judges shall prescribe by regula-
16
tion.
17
‘‘(iii) For purposes of clauses (i) and (ii)—
18
‘‘(I) revenue shall be calculated in ac-
19
cordance with generally accepted account-
20
ing principles;
21
‘‘(II) revenue generated by a terres-
22
trial broadcast station shall include all rev-
23
enue from the operation of the station,
24
from any source; and
25
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9
•HR 791 IH
‘‘(III) in the case of affiliated broad-
1
cast stations, revenue shall be allocated
2
reasonably to individual stations associated
3
with the revenue.
4
‘‘(iv) The royalty rates specified in clause
5
(i) shall not be admissible as evidence or other-
6
wise taken into account in determining royalty
7
rates in a proceeding under chapter 8, or in any
8
other administrative, judicial, or other Federal
9
Government proceeding involving the setting or
10
adjustment of the royalties payable for the pub-
11
lic performance or reproduction in ephemeral
12
phonorecords or copies of sound recordings, the
13
determination of terms or conditions related
14
thereto, or the establishment of notice or rec-
15
ordkeeping requirements.’’.
16
(b) TECHNICAL CORRECTION.—Section 118(f) of
17
title 17, United States Code, is amended by striking ‘‘sec-
18
tion 397 of title 47’’ and inserting ‘‘section 397 of the
19
Communications Act of 1934 (47 U.S.C. 397)’’.
20
SEC. 5. DISTRIBUTION OF CERTAIN ROYALTIES.
21
Section 114(g) of title 17, United States Code, is
22
amended—
23
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10
•HR 791 IH
(1) in paragraph (1), by inserting ‘‘or in the
1
case of a transmission to which paragraph (5) ap-
2
plies’’ after ‘‘this section’’;
3
(2) by redesignating paragraphs (5), (6), and
4
(7) as (6), (7), and (8), respectively; and
5
(3) by inserting after paragraph (4) the fol-
6
lowing new paragraph:
7
‘‘(5) Notwithstanding paragraph (1), to the ex-
8
tent that a license granted by the copyright owner
9
of a sound recording to a transmitting entity eligible
10
for a statutory license under subsection (d)(2) ex-
11
tends to such entity’s transmissions otherwise licens-
12
able under a statutory license in accordance with
13
subsection (f), such entity shall pay to the collective
14
designated to distribute statutory licensing receipts
15
from the licensing of transmissions in accordance
16
with subsection (f), 50 percent of the total royalties
17
that such entity is required, pursuant to the applica-
18
ble license agreement, to pay for such transmissions
19
otherwise licensable under a statutory license in ac-
20
cordance with subsection (f). That collective shall
21
distribute such payments in proportion to the dis-
22
tributions provided in subparagraphs (B) through
23
(D) of paragraph (2), and such payments shall be
24
the only payments to which featured and nonfea-
25
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•HR 791 IH
tured artists are entitled by virtue of such trans-
1
missions under the direct license with such entity.’’.
2
SEC. 6. NO HARMFUL EFFECTS ON SONGWRITERS.
3
Nothing in this Act, or the amendments made by this
4
Act, shall adversely affect in any respect the public per-
5
formance rights of or royalties payable to songwriters or
6
copyright owners of musical works.
7
SEC. 7. VALUE OF PROMOTION TAKEN INTO ACCOUNT.
8
Pursuant to section 114(f)(1)(B) of title 17, United
9
States Code, in determining rates and terms for terrestrial
10
broadcast radio stations under this Act, and the amend-
11
ments made by this Act, the Copyright Royalty Judges
12
shall base their decision on economic, competitive, and
13
programming information presented by the parties, includ-
14
ing whether use of the station’s service may substitute for
15
or may promote the sales of phonorecords or otherwise
16
may interfere with or may enhance the sound recording
17
copyright owner’s other streams of revenue from the copy-
18
right owner’s sound recordings.
19
Æ
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