This resolution expresses Congressional opposition to imposing new performance fees on local radio stations, citing the mutually beneficial relationship between broadcasters and the music industry.
John Barrasso
Senator
WY
The Local Radio Freedom Act expresses Congressional opposition to imposing new performance fees on local radio stations for playing music. This resolution maintains that the current system provides essential promotional value to artists while supporting local community services. Consequently, it advocates against any new taxes or royalties that would place an undue financial burden on broadcasters and local businesses.
Local Radio Freedom Act Blocks New Music Performance Fees: Keeping Over-the-Air Airwaves Free for Small Businesses and Listeners
This concurrent resolution puts a stake in the ground for your local FM and AM dials, declaring that Congress should not impose any new performance fees, taxes, or royalties on local radio stations for playing music. Currently, radio stations pay songwriters and publishers, but they don't pay the performing artists or record labels for the sound recording itself—a setup that’s been in place for nearly a century. This resolution aims to keep it that way, arguing that the free promotion radio provides is a fair trade for the music they air. It specifically shields not just the stations themselves, but also the local bars, restaurants, and retail shops that play the radio for their customers from being hit with new 'performance' charges.
The "Free Promotion" Trade-Off
The core logic here is that local radio acts as a massive, free marketing machine for the music industry. By playing a track, interviewing an artist, or promoting a local concert, stations drive listeners to buy albums, stream songs, and purchase merchandise. The resolution points out that for decades, congressional committees have found this relationship to be mutually beneficial. For a new artist trying to break out or a legacy act staying relevant, getting on the airwaves is essentially a high-value advertisement they don't have to pay for. By blocking new fees, the resolution aims to protect this ecosystem where stations get content and artists get a platform without cash changing hands for the broadcast itself.
Protecting the Local Lifeline
Beyond just music, the resolution highlights that radio stations are often the only free source of emergency info. Whether it's a tornado warning in the Midwest or a hurricane update on the coast, stations provide tens of thousands of hours of local news and weather coverage. If stations were forced to pay new performance royalties, the resolution argues those costs would likely be carved out of their budgets for local news, sports, and public service announcements. For the listener, this means the bill is less about the music industry's bottom line and more about ensuring your local station has the funds to stay on the air when the power goes out and you need a weather update.
Impact on the Corner Bar and Retail Shop
It isn't just the big media conglomerates that would feel the pinch of new fees; the resolution specifically mentions small businesses like restaurants and sports venues. If you own a local diner and keep the radio on for background noise, new performance taxes could turn a simple amenity into a new overhead cost. By explicitly stating that businesses performing sound recordings from a local broadcast should not be charged, the resolution protects the neighborhood coffee shop or retail store from being hit with unexpected licensing bills just for having the radio on. It keeps the 'free' in free radio for the people who use it to make their businesses feel a little more like home.