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Amends 17 U.S.C. 114(g) by (1) modifying paragraph (1) (inserting text after a semicolon), (2) redesignating existing paragraphs (5), (6), and (7) as paragraphs (6), (7), and (8), respectively, and (3) inserting a new paragraph (5) that (a) requires a transmitting entity eligible for a statutory license under subsection (d)(2) that has a license from the copyright owner extending to transmissions otherwise licensable under subsection (f) to pay the collective designated to distribute statutory licensing receipts under subsection (f) 50 percent of the total royalties such entity is required to pay under the license agreement for those transmissions, (b) directs that the collective distribute those payments in proportion to the distributions provided in subparagraphs (B) through (D) of paragraph (2), and (c) states that those payments are the only payments to which featured and nonfeatured artists are entitled by virtue of such transmissions under the direct license with the entity.
Inserts a new subparagraph (D) establishing specified per-station annual royalty rates for nonsubscription terrestrial broadcast transmissions and specifying eligibility, revenue calculation, certification, and allocation rules.
Amends section 118 by striking the phrase 'section 397 of title 47' and inserting [text not specified in this section] in each place it appears.
Adds a new subparagraph (D) to paragraph (3) of section 804(b) requiring immediate commencement of a proceeding to set royalty rates and terms for nonsubscription broadcast transmissions effective from the date of enactment through December 31, 2028; delays payments under 114(f)(1)(D) until the due date of the first royalty payments determined after enactment by the Copyright Royalty Judges; and requires repeating the proceeding every fifth calendar year thereafter.
Amends paragraph (6) of section 106 to provide a public performance right for sound recordings by means of an 'audio transmission'.
Amends section 114(d)(1): in the matter preceding subparagraph (A) strikes 'a digital' and inserts 'an'; strikes subparagraph (A); redesignates subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and in redesignated subparagraph (A) strikes 'nonsubscription' and inserts 'licensed nonsubscription'.
Inserts a definition of 'audio transmission' into section 101.
In section 112(e)(8), strikes 'a digital audio transmission' and inserts 'an audio transmission'.
Makes amendments in subsection (d), paragraph (2) of section 114 (conforming changes as specified in the section).
Makes amendments in subsection (d), paragraph (4) of section 114 (conforming changes as specified in the section).
And 7 more affected sections...
Changes federal copyright law so that all "audio transmissions" — whether over‑the‑air terrestrial radio or internet/digital streams — are treated the same for the sound‑recording public performance right. It creates a schedule and rules for setting royalty rates for nonsubscription broadcast transmissions, establishes lower, fixed annual fees for qualifying small individual terrestrial stations, prescribes how certain royalties are paid and distributed via a collective, and instructs the Copyright Royalty Judges on the factors to use when setting rates. The Act also explicitly preserves existing public‑performance rights and royalties for songwriters and other musical‑work copyright owners.
Amends paragraph (6) of 17 U.S.C. §106 to state that, for sound recordings, the copyright owner has the public performance right when the work is performed by means of an "audio transmission."
Amends 17 U.S.C. §114(d)(1) by replacing the words "a digital" with "an" in the matter preceding subparagraph (A).
Strikes subparagraph (A) of 17 U.S.C. §114(d)(1).
Redesignates former subparagraphs (B) and (C) of 17 U.S.C. §114(d)(1) as subparagraphs (A) and (B), respectively.
In the subparagraph (A) of 17 U.S.C. §114(d)(1) as redesignated, strikes the word "nonsubscription" and inserts "licensed nonsubscription."
Who is affected and how:
Terrestrial radio broadcasters: Most directly affected. Larger and mid‑size broadcasters face new or clarified exposure to sound‑recording public performance royalties previously treated differently; they must participate in royalty proceedings, may owe new payments, and must comply with payment and reporting rules. Small individual stations that meet eligibility rules can opt for the new lower fixed annual fee, reducing their financial and administrative burden relative to full statutory rates.
Internet and digital audio services / platform operators: Their existing obligations are clarified to be on equal footing with terrestrial transmissions; the change reduces a statutory distinction between delivery technologies, which may alter competitive dynamics and licensing negotiations.
Sound‑recording copyright owners and performers (artists, labels): Likely to receive expanded or more uniformly applied royalties from terrestrial transmissions; distribution mechanisms through collectives are specified, which affects timing and shares of receipts.
Songwriters and musical‑work copyright owners (publishers/authors): Explicitly protected by the Act from any reduction in performance rights or royalties, so their existing payments under separate public‑performance rules for musical works should remain unaffected.
Royalty collectives and administrators: Will receive and redistribute statutory license receipts under new direction (including required 50% remittances from certain transmitters), and must follow new distribution rules and exclusion lists, increasing administrative duties.
Copyright Royalty Judges and judicial/admin processes: Will conduct expedited and recurring rate‑setting proceedings based on expanded criteria and must evaluate economic/substitution effects; workload and evidentiary complexity will increase.
Advertisers and stations' revenue models: Potential upward pressure on broadcast operating costs could influence programming decisions, advertising rates, or consolidation; stations may adjust playlists or operations to manage royalty exposure.
Consumers: Indirect effects only; potential long‑term changes to local radio programming or advertising could arise, but no direct consumer fees are imposed.
Overall impact: the law narrows a long‑standing legal distinction between terrestrial and digital audio transmissions, moving toward uniformity in performance rights while carving out relief for qualifying small stations and protecting songwriters' existing rights; this will shift costs and administrative obligations within the broadcast and music licensing ecosystem and likely trigger industry negotiations and litigation over implementation details.
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Read twice and referred to the Committee on the Judiciary.
Introduced January 30, 2025 by Marsha Blackburn · Last progress January 30, 2025
Read twice and referred to the Committee on the Judiciary.
Introduced in Senate