Performance Royalty Compromise Offered: Artists Can Opt-Out Of Compensation-Free Airplay

Can't They All Get Along?

A compromise of sorts to the contentious performance royalty issue has been offered in new legislation. HOUSE JUDICIARY SUBCOMMITTEE FOR COURTS, INTELLECTUAL PROPERTY AND THE INTERNET Chairman DARRELL ISSA (R-CA) and Rep. TED DEUTCH (D-FL) have introduced H.R 1914, the PERFORMANCE ROYALTY OWNERS OF MUSIC OPPORTUNITY TO EARN ACT OF 2017 (PROMOTE Act), which would allow performing artists to opt out of having their music played on the radio if the performing artist is not being paid an agreed-upon performance royalty.

The bipartisan legislation would fix a decades-old inequity in copyright law that allows terrestrial radio stations to play music without compensating performers.

“The PROMOTE Act calls the bluff of both sides in the debate over performance rights," Congressman ISSA said. "The terrestrial stations playing these works without compensating the artists argue that airtime provides exposure and promotional value, while the artists argue the status-quo allows radio stations to profit on artists' performances without providing any due compensation. Our bill puts forward a workable solution that would allow those who would otherwise be paid a performance right to opt out of allowing broadcasters to play their music if they feel they’re not being appropriately compensated. This is a win-win that helps solve this decades' long problem in a way that’s fair to both parties."

“We have been told for years that AM/FM radio provides valuable promotion to recording artists, but those artists have never been given the opportunity to decide for themselves," Congressman DEUTCH  added. "It should be the artist’s choice whether to offer their music for free in exchange for promotional play, or to instead opt out of the unpaid use of their music. I am proud to join my colleague Rep. ISSA in introducing the PROMOTE Act to give recording artists more control over their work.”

NAB Not Impressed...

NAB EVP/Communications DENNIS WHARTON issued the following statement: “NAB has significant concerns with this legislation that would upend the music licensing framework that currently enables broadcasters to serve local communities across the country, and would result in less music being played on the radio to the detriment of listeners and artists. NAB thanks the almost 200 members of congress who support the LOCAL RADIO FREEDOM ACT and recognize the tremendous benefits of free, promotional airplay for musicians and labels."

...But musicFIRST Thinks It's Do-Able

MUSICFIRST Exec. Dir. CHRIS ISRAEL issued the following statement on the PROMOTE Act:

“While the platforms available to U.S. music fans are more innovative and diverse than ever, AMERICA’s copyright system is struggling to keep up. Music creators rightly expect to be fairly compensated for their work, regardless of whether their songs are played on satellite radio services like SIRIUS XM, PANDORA, SPOTIFY, YOUTUBE or AM/FM radio. Unfortunately, this is not always the case.

“The U.S. is the only developed country where music creators have no say when it comes to traditional AM/FM radio stations playing and profiting from their hard work, but without receiving a dime. Congressman ISSA’s PROMOTE Act addresses this glaring inequity by empowering music creators to seek fair compensation when their works are played on terrestrial radio.

“The MUSICFIRST coalition thanks Congressman ISSA for his vision and support. We will continue working with him and his colleagues on the HOUSE JUDICIARY COMMITTEE as they continue their efforts to improve and modernize the U.S. copyright system.”

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