The bill strengthens and clarifies creators' rights and adds predictable rules and relief for very small stations, but does so by shifting costs, compliance burdens, and financial uncertainty onto many broadcasters and payors while centralizing some artist payments through collectives.
Music creators, performing artists, and copyright owners will gain broader, clearer statutory rights and likely higher licensing revenue because terrestrial broadcasts are treated like digital transmissions and the statute's wording is unified.
Broadcasters and copyright owners get clearer, more predictable royalty processes — including prompt interim rates through Dec 31, 2028, a regular five-year review cycle, and defined revenue rules — helping budgeting and reducing legal ambiguity.
Low-revenue FCC-licensed broadcast stations and small public broadcasters will pay modest, fixed annual fees ($10–$500, or $100 for qualifying public stations), lowering operating costs and improving budget predictability for very small stations.
Terrestrial radio stations, broadcasters, venues, and other businesses that license music will likely face higher licensing costs if treated like digital services, which may be passed to listeners, advertisers, or consumers.
Small and niche broadcasters, as well as government contractors and other stakeholders, will face increased compliance, administrative, and legal burdens adapting to revised license terms, reporting requirements, and frequent five-year proceedings.
Payors and rights-holders face financial uncertainty because payments are delayed until Copyright Royalty Judges set new rates, creating the risk of large lump-sum or retroactive obligations while also reducing near-term income for songwriters and other rights-holders.
Based on analysis of 12 sections of legislative text.
Broadens the federal performance right to all audio transmissions, orders judges to set terrestrial broadcast royalty rates, creates small-station low-fee tiers, and redirects half of some direct-license royalties to the statutory collective.
Introduced January 31, 2025 by Darrell Issa · Last progress January 31, 2025
Expands federal copyright protection for sound recordings so that the exclusive public performance right and the statutory license apply to all "audio transmissions" (digital, analog, or other), bringing terrestrial (over-the-air) radio transmissions into the same statutory framework long used for internet/digital services. Creates a definition of "audio transmission," requires the Copyright Royalty Judges to set royalty rates promptly for nonsubscription terrestrial broadcasts (covering enactment through Dec 31, 2028 and every five years thereafter), and establishes three low, fixed annual fees for eligible small and public broadcast stations. Also requires entities that hold direct licenses from sound-recording owners to remit half of the royalties for transmissions that would otherwise be covered by the statutory license to the designated collective for distribution, preserves songwriter/composer rights, and tells judges to weigh economic, competitive, and programming evidence (including whether radio use substitutes for or promotes record sales) when setting terrestrial broadcast rates.