The bill strengthens protections and predictability for creators and rights holders while simplifying small-station fees, but does so at the cost of higher or more uncertain licensing costs, compliance burdens, and concentrated distribution control that may hurt some broadcasters, artists, and consumers.
Music creators, songwriters, and copyright owners keep existing public-performance rights and gain broader protection (treating certain terrestrial broadcasts like digital transmissions), which should preserve or increase royalty income and legal enforceability for creators and publishers.
Broadcasters, rights holders, and licensing stakeholders get clearer, more predictable royalty-setting: prompt interim rates through Dec 31, 2028, an explicit five-year review cycle, and clarified rate procedures that reduce long-term regulatory uncertainty.
Low-revenue FCC-licensed stations and modest-revenue public broadcasters face very small fixed annual fees ($10–$500 or $100 for modest public stations), lowering or stabilizing operating costs for many small/local outlets and public media.
Terrestrial radio and other non-digital broadcasters (and potentially their listeners/advertisers) may face higher licensing costs if treated like digital services, increasing operating expenses that could be passed on to consumers or advertisers.
Delaying required payments until the Copyright Royalty Judges set new rates creates short-term reductions in royalty income for rights-holders and the risk of lump-sum or retroactive payments once rates are established, producing cash-flow uncertainty for both payors and payees.
Stations just above the low-revenue thresholds face sharp 'cliff' increases in royalties compared with slightly smaller peers, creating uneven burdens and potential financial stress for stations marginally over the limits.
Based on analysis of 12 sections of legislative text.
Expands the public performance statutory framework to cover all audio transmissions, mandates CRJ rate-setting and creates low fixed royalty tiers for qualifying small terrestrial broadcasters.
Official title: To amend title 17, United States Code, to provide fair treatment of radio stations and artists for the use of sound recordings, and for other purposes.
Introduced January 31, 2025 by Darrell Issa · Last progress January 31, 2025
Expands the federal public performance right for sound recordings so that all "audio transmissions" (digital, analog, or other) are treated the same, bringing terrestrial (AM/FM and other non-digital) broadcasts into statutory performance and licensing regimes that previously referenced only "digital" transmissions. It directs the Copyright Royalty Judges (CRJs) to set royalty rates for these nonsubscription broadcast transmissions through a recurring proceeding, creates three very low fixed annual royalty tiers for small and public terrestrial stations that meet revenue and ownership-size tests, requires certain direct-licensees to share half of applicable direct-license payments with the collective that distributes statutory license receipts, and instructs the CRJs to consider economic, competitive, and programming evidence — including substitution effects on sales — when setting rates for terrestrial stations.