S 4932 — American Music Fairness Act

Summary

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 and addresses other related issues. (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 secure 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.

Bill Text

• Introduced Introduced in Senate Current html September 22, 2022

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill amends copyright law to include terrestrial broadcasts in the performance rights and statutory licensing for sound recordings, establish specific royalty rates for small broadcasters, and clarify definitions related to audio transmissions.

• 17 U.S.C. § 106

  in the case of sound recordings, to perform the copyrighted work publicly by means of a digital audio transmission. → in the case of sound recordings, to perform the copyrighted work publicly by means of an audio transmission.

  This change extends the performance right to include audio transmissions, not just digital formats.

• 17 U.S.C. § 114(d)(1)

  a digital → an

  This change corrects the article used before 'audio transmissions', changing it to a more general term.

• 17 U.S.C. § 114(d)(1)

  subparagraph (A)

  This change removes the existing subparagraph to enhance clarity and accommodate new definitions.

• 17 U.S.C. § 114(d)(1)

  nonsubscription → licensed nonsubscription

  This change clarifies the type of transmissions included under the statutory license.

• 17 U.S.C. § 101

  An `audio transmission' is a transmission of a sound recording, whether in a digital, analog, or other format. This term does not include the transmission of any audiovisual work.

  This addition defines 'audio transmission' to encompass various formats.

• 17 U.S.C. § 114(f)(1)

  (D)(i) Notwithstanding the provisions of subparagraphs (A) through (C), the royalty rate shall be as follows for nonsubscription broadcast transmissions by each individual terrestrial broadcast station licensed as such by the Federal Communications Commission that satisfies the conditions in clause (ii)-- (I) $10 per calendar year, in the case of nonsubscription broadcast transmissions by a broadcast station that generated revenue in the immediately preceding calendar year of less than $100,000; (II) $100 per calendar year, in the case of nonsubscription broadcast transmissions by a broadcast station that is a public broadcasting entity as defined in section 118(f) and generated revenue in the immediately preceding calendar year of $100,000 or more, but less than $1,500,000; and (III) $500 per calendar year, in the case of nonsubscription broadcast transmissions by a broadcast station that is not a public broadcasting entity as defined in section 118(f) and generated revenue in the immediately preceding calendar year of $100,000 or more, but less than $1,500,000.

  This change establishes specific royalty rates for small broadcasters to ease their financial burden.

• 17 U.S.C. § 118(f)

  section 397 of title 47 → section 397 of the Communications Act of 1934 (47 U.S.C. 397)

  This change clarifies the reference to the definition of 'public broadcasting entity'.

• 17 U.S.C. § 114(g)

  (5) Notwithstanding paragraph (1), to the extent that a license granted by the copyright owner of a sound recording to a transmitting entity eligible for a statutory license under subsection (d)(2) extends to such entity's transmissions otherwise licensable under a statutory license in accordance with subsection (f), such entity shall pay to the collective designated to distribute statutory licensing receipts from the licensing of transmissions in accordance with subsection (f), 50 percent of the total royalties that such entity is required, pursuant to the applicable license agreement, to pay for such transmissions otherwise licensable under a statutory license in accordance with subsection (f). That collective shall distribute such payments in proportion to the distributions provided in subparagraphs (B) through (D) of paragraph (2), and such payments shall be the only payments to which featured and nonfeatured artists are entitled by virtue of such transmissions under the direct license with such entity.

  This change specifies how royalties are to be distributed for transmissions under statutory licensing.

Action History

1. September 22, 2022

   Introduced in Senate

2. September 22, 2022

   Read twice and referred to the Committee on the Judiciary. (Sponsor introductory remarks on measure: CR S4972)

Sponsors

• Marsha Blackburn · Cosponsor
• Thomas Tillis · Cosponsor
• Dianne Feinstein · Cosponsor
• Alex Padilla · Primary

Subjects