What This Bill Does
This bill amends federal copyright law to require radio stations to pay royalties to artists and sound recording owners when they broadcast their music. It treats traditional radio stations the same way the law currently treats internet music services. The bill also creates lower payment rates for small radio stations.
Who It Affects
* Traditional terrestrial radio stations (stations with broadcast licenses from the Federal Communications Commission)
* Sound recording artists and copyright owners
* Internet music services
* Public broadcasting stations
* Small radio stations with annual revenues below $1,500,000
* Copyright Royalty Judges (the officials who set payment rates)
Key Provisions
* Radio stations must pay royalties to sound recording owners when they broadcast music, the same way internet services do now (Sec. 2)
* Small radio stations pay reduced yearly royalties: $10 per year for stations earning under $100,000 annually, $100 per year for public broadcasting stations earning $100,000 to $1,500,000, and $500 per year for other stations in that revenue range (Sec. 4)
* Copyright Royalty Judges must start a proceeding as soon as possible after the bill becomes law to set payment rates for radio stations, effective through December 31, 2028 (Sec. 3)
* When a radio station has a direct license agreement with a sound recording owner, the station pays 50 percent of required royalties to the designated royalty collection organization instead of paying the full amount (Sec. 5)
* The bill does not change any royalty rights or payments owed to songwriters or musical work copyright owners (Sec. 6)
What Changes
The bill expands who must pay royalties for sound recordings. Radio stations will now owe royalties to artists and sound recording owners when broadcasting their music, similar to how internet streaming services currently pay. Small radio stations will qualify for significantly lower payment amounts based on their annual revenue. Copyright Royalty Judges will hold new proceedings to establish the specific payment rates radio stations must pay.
Important Definitions
* "Audio transmission" means a transmission of a sound recording in any format (digital, analog, or other), not including audiovisual works (Sec. 2)
* "Nonsubscription broadcast transmissions" means broadcasts that do not require listeners to pay a subscription fee (Sec. 2)
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 253
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 SENATE OF THE UNITED STATES
FEBRUARY 2, 2023
Mr. PADILLA (for himself, Mrs. BLACKBURN, Mr. TILLIS, and Mrs. FEIN-
STEIN) introduced the following bill; which was read twice and referred
to the Committee on the Judiciary
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’’.
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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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 subparagraphs (A) and (B), respectively; and
18
(4) in subparagraph (A), as redesignated by
19
paragraph (3), by striking ‘‘nonsubscription’’ and in-
20
serting ‘‘licensed nonsubscription’’.
21
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
22
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•S 253 IS
(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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•S 253 IS
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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•S 253 IS
(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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•S 253 IS
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 sub-
10
paragraphs (A) through (C), the royalty rate shall
11
be as follows for nonsubscription broadcast trans-
12
missions by each individual terrestrial broadcast sta-
13
tion licensed as such by the Federal Communica-
14
tions Commission that satisfies the conditions in
15
clause (ii)—
16
‘‘(I) $10 per calendar year, in the case of
17
nonsubscription broadcast transmissions by a
18
broadcast station that generated revenue in the
19
immediately preceding calendar year of less
20
than $100,000;
21
‘‘(II) $100 per calendar year, in the case
22
of nonsubscription broadcast transmissions by a
23
broadcast station that is a public broadcasting
24
entity as defined in section 118(f) and gen-
25
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•S 253 IS
erated revenue in the immediately preceding
1
calendar year of $100,000 or more, but less
2
than $1,500,000; and
3
‘‘(III) $500 per calendar year, in the case
4
of nonsubscription broadcast transmissions by a
5
broadcast station that is not a public broad-
6
casting entity as defined in section 118(f) and
7
generated revenue in the immediately preceding
8
calendar year of $100,000 or more, but less
9
than $1,500,000.
10
‘‘(ii) An individual terrestrial broadcast station
11
licensed as such by the Federal Communications
12
Commission is eligible for a royalty rate set forth in
13
clause (i) if—
14
‘‘(I) the revenue from the operation of that
15
individual station was less than $1,500,000
16
during the immediately preceding calendar year;
17
‘‘(II) the aggregate revenue of the owner
18
and operator of the broadcast station and any
19
person directly or indirectly controlling, con-
20
trolled by, or under common control with such
21
owner or operator, from any source, was less
22
than $10,000,000 during the immediately pre-
23
ceding calendar year; and
24
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‘‘(III) the owner or operator of the broad-
1
cast station provides to the nonprofit collective
2
designated by the Copyright Royalty Judges to
3
distribute receipts from the licensing of trans-
4
missions in accordance with subsection (f), by
5
no later than January 31 of the relevant cal-
6
endar year, a written and signed certification of
7
the station’s eligibility under this clause and the
8
applicable subclause of clause (i), in accordance
9
with
requirements
the
Copyright
Royalty
10
Judges shall prescribe by regulation.
11
‘‘(iii) For purposes of clauses (i) and (ii)—
12
‘‘(I) revenue shall be calculated in accord-
13
ance with generally accepted accounting prin-
14
ciples;
15
‘‘(II) revenue generated by a terrestrial
16
broadcast station shall include all revenue from
17
the operation of the station, from any source;
18
and
19
‘‘(III) in the case of affiliated broadcast
20
stations, revenue shall be allocated reasonably
21
to individual stations associated with the rev-
22
enue.
23
‘‘(iv) The royalty rates specified in clause (i)
24
shall not be admissible as evidence or otherwise
25
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•S 253 IS
taken into account in determining royalty rates in a
1
proceeding under chapter 8, or in any other adminis-
2
trative, judicial, or other Federal Government pro-
3
ceeding involving the setting or adjustment of the
4
royalties payable for the public performance or re-
5
production in ephemeral phonorecords or copies of
6
sound recordings, the determination of terms or con-
7
ditions related thereto, or the establishment of notice
8
or recordkeeping requirements.’’.
9
(b) TECHNICAL CORRECTION.—Section 118(f) of
10
title 17, United States Code, is amended by striking ‘‘sec-
11
tion 397 of title 47’’ and inserting ‘‘section 397 of the
12
Communications Act of 1934 (47 U.S.C. 397)’’.
13
SEC. 5. DISTRIBUTION OF CERTAIN ROYALTIES.
14
Section 114(g) of title 17, United States Code, is
15
amended—
16
(1) in paragraph (1), by inserting ‘‘or in the
17
case of a transmission to which paragraph (5) ap-
18
plies’’ after ‘‘this section’’;
19
(2) by redesignating paragraphs (5), (6), and
20
(7) as paragraphs (6), (7), and (8), respectively; and
21
(3) by inserting after paragraph (4) the fol-
22
lowing new paragraph:
23
‘‘(5) Notwithstanding paragraph (1), to the ex-
24
tent that a license granted by the copyright owner
25
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•S 253 IS
of a sound recording to a transmitting entity eligible
1
for a statutory license under subsection (d)(2) ex-
2
tends to such entity’s transmissions otherwise licens-
3
able under a statutory license in accordance with
4
subsection (f), such entity shall pay to the collective
5
designated to distribute statutory licensing receipts
6
from the licensing of transmissions in accordance
7
with subsection (f), 50 percent of the total royalties
8
that such entity is required, pursuant to the applica-
9
ble license agreement, to pay for such transmissions
10
otherwise licensable under a statutory license in ac-
11
cordance with subsection (f). That collective shall
12
distribute such payments in proportion to the dis-
13
tributions provided in subparagraphs (B) through
14
(D) of paragraph (2), and such payments shall be
15
the only payments to which featured and nonfea-
16
tured artists are entitled by virtue of such trans-
17
missions under the direct license with such entity.’’.
18
SEC. 6. NO HARMFUL EFFECTS ON SONGWRITERS.
19
Nothing in this Act, or the amendments made by this
20
Act, shall adversely affect in any respect the public per-
21
formance rights of or royalties payable to songwriters or
22
copyright owners of musical works.
23
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•S 253 IS
SEC. 7. VALUE OF PROMOTION TAKEN INTO ACCOUNT.
1
Pursuant to section 114(f)(1)(B) of title 17, United
2
States Code, in determining rates and terms for terrestrial
3
broadcast radio stations under this Act, and the amend-
4
ments made by this Act, the Copyright Royalty Judges
5
shall base their decision on economic, competitive, and
6
programming information presented by the parties, includ-
7
ing whether use of the station’s service may substitute for
8
or may promote the sales of phonorecords or otherwise
9
may interfere with or may enhance the sound recording
10
copyright owner’s other streams of revenue from the copy-
11
right owner’s sound recordings.
12
Æ
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