The American Music Fairness Act updates copyright law to require terrestrial radio broadcasters to pay royalties to artists for playing their music, similar to internet streaming services, while providing royalty relief for small broadcasters and ensuring songwriters' royalties are not negatively impacted.
Marsha Blackburn
Senator
TN
The American Music Fairness Act updates copyright law to require terrestrial radio broadcasts to pay royalties to music creators, similar to internet radio services. It establishes royalty rates for eligible small broadcasters and ensures that songwriters' royalties are not negatively impacted. The bill also directs Copyright Royalty Judges to consider the promotional value of radio airplay when determining royalty rates.
American Music Fairness Act: New Royalties for Radio Play, Small Stations Get a Break
The American Music Fairness Act is shaking things up in the music world by making all radio stations – not just digital ones – pay royalties for playing music. This means artists and record labels could see more income, leveling the playing field between traditional AM/FM stations and online streaming services. The core idea? If a station is making money by playing music, the people who created that music should get a slice of the pie. (SEC. 2)
Leveling the Playing Field for Artists
This bill fundamentally changes how royalties work for music played on the radio. Previously, terrestrial (AM/FM) radio stations didn't have to pay performance royalties to artists and record labels, while internet radio and satellite radio did. This bill wipes out that distinction, applying the same rules across the board. This means if you're a musician whose song gets played on a local FM station, you're finally in line to get paid for that airplay, just like you would if it were streamed online. (SEC. 2)
Small Station Shuffle: Keeping Local Radio Alive
One of the biggest impacts is on small, local radio stations. The bill recognizes that these stations often operate on tight budgets, so it sets up a tiered system for royalty payments. If a station makes less than $100,000 a year, they only pay a tiny $10 annual fee. Stations pulling in between $100,000 and $1.5 million have a couple of options, maxing out at $500 per year. Public broadcasting entities within that range have the rate capped at $100. This is designed to keep small stations afloat while still ensuring artists get compensated. The catch? The station's owner (and any related companies) can't be raking in more than $10 million annually, and stations have to certify their eligibility in writing every year by January 31st. (SEC. 4)
Royalty Roundup: Who Gets What?
Things get a little complicated when it comes to how the money gets divided. If a station has a direct license with a record label, they still have to pay 50% of what they would have paid under the standard statutory license to a designated collective. This collective then distributes that money to artists, both featured and non-featured, following existing rules. The bill also makes it clear that this doesn't mess with songwriters' royalties – they're still getting paid for the public performance of their compositions. (SEC. 5, SEC. 6)
Setting the Stage for Future Rates
Looking ahead, the Copyright Royalty Judges will have a new factor to consider when setting royalty rates: the promotional value of radio airplay. Basically, they have to weigh how much a song being played on the radio helps (or hurts) record sales and other income for the copyright owners. New royalty rates and terms for nonsubscription broadcast transmissions will be determined as soon as possible after the enactment of the bill, and they will be effective until December 31, 2028. These proceedings will be repeated every five years. (SEC. 3, SEC. 7)