The US House Judiciary Committee has approved a bill that would compel terrestrial radio stations to pay performance royalties to artists.

Judiciary Committee Chair Jerry Nadler (D-NY) scheduled a markup session for yesterday (December 7 2022) to discuss the American Music Fairness Act, a bill which would change the exemption radio broadcasters have from paying performance royalties to artists whose music is played on the air.

The committee approved the bill at the same session, where it awaits passage by the full house. (Read the full text of the American Music Fairness Act here.)

Currently, radio broadcasters pay only songwriters and publishers royalties – an exemption from performance royalties enjoyed by radio broadcasters and no one else. The quirk is a legacy from the days when radio was the chief vehicle of promotion in the marketplace, with plays driving sales of singles and albums.

There have been repeated attempts to change the law over the years. The current legislation was also introduced in the Senate last month by co-sponsors by Alex Padilla (D-CA) and Marsha Blackburn (R-TN) – senators representing the music industry centers of Los Angeles and Nashville. An accompanying letter signed by artists including Sheila E, Sammy Hagar and Jackson Browne noted that most foreign countries already pay artists for radio play, yet “currently withhold royalties from American music creators when our songs get played in their countries, simply because the United States does not reciprocate by paying their artists here.”

This amounts to approximately $200 million every year in lost income for American artists. By supporting the American Music Fairness Act, you can ensure that this money flows back to the United States.

 

In marking up the bill, Nadler offered the following statement defending the rights of musicians:

“Imagine a profession in which you put in countless hours to create a product that is appreciated by millions of people, but while major companies can generate significant profits distributing your product, those companies pay you absolutely nothing for your efforts. This may seem unthinkable, but it is the reality for American recording artists and musicians when their music is played on AM/FM radio. They do not receive a penny in exchange for the broadcast of their performances, even though the large broadcasting corporations playing their music take in billions of dollars every year from advertising.”

 

Nadler previously referred to the broadcasters’ exemption as “one of the most longstanding injustices that, unfortunately, has been a feature of the music landscape for decades — the ability of AM/FM broadcasters to play music without paying the performing artists a royalty.”

Radio broadcasters (increasingly dominated, like most of the entertainment industry, by an ever-diminishing number of large companies) are viciously opposed to the new legislation. The National Association of Broadcasters has instead backed a rival “Local Radio Freedom Act” which would block any attempt to force terrestrial radio from paying any performance royalties on behalf of “local radio stations.” The NAB has claimed any attempt to do so would “undermine our critical public service to line the pockets of multinational billion-dollar record labels” and called performance royalties (which are paid by internet broadcasters” “this onerous performance fee.”

The American Federation of Musicians counters that the American Music Fairness Act will protect small, public and non-commercial stations through exemptions.

The lameduck 117th Congress sits until the new body convenes on January 3, when the House and committees including the Judiciary Committee are expected to yield control to the Republican Party. There are no indications yet that the full House will pass the bill before this happens.

Photo by Timusic Photographs on Unsplash

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