119-s326

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 326 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 326

 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.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 January 30, 2025

 Mrs. Blackburn (for herself, Mr. Padilla, Mr. Tillis, and Mr. Booker) 
introduced the following bill; which was read twice and referred to the 
 Committee on the Judiciary

_______________________________________________________________________

 A BILL

 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Music 
Fairness Act''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

Sec. 2. Equitable treatment for terrestrial broadcasts and internet 
 services.

Sec. 3. Timing of proceedings under sections 112

    (e) and 114

    (f) .

Sec. 4. Special protection for small broadcasters.

Sec. 5. Distribution of certain royalties.

Sec. 6. No harmful effects on songwriters.

Sec. 7. Value of promotion taken into account.

SEC. 2. EQUITABLE TREATMENT FOR TERRESTRIAL BROADCASTS AND INTERNET 
 SERVICES.

    (a) Performance Right Applicable to Audio Transmissions 
Generally.--Paragraph

    (6) of 

section 106 of title 17, United States 
Code, is amended to read as follows:
 ``

    (6) in the case of sound recordings, to perform the 
 copyrighted work publicly by means of an audio transmission.''.

    (b) Inclusion of Terrestrial Broadcasts in Existing Performance 
Right and Statutory License.--

Section 114
            (d) (1) of title 17, United 
States Code, is amended--

    (1) in the matter preceding subparagraph
        (A) , by striking 
 ``a digital'' and inserting ``an'';

    (2) by striking subparagraph
        (A) ;

    (3) by redesignating subparagraphs
        (B) and
            (C) as 
 subparagraphs
        (A) and
        (B) , respectively; and

    (4) in subparagraph
        (A) , as redesignated by paragraph

    (3) , 
 by striking ``nonsubscription'' and inserting ``licensed 
 nonsubscription''.
            (c) Technical and Conforming Amendments.--

    (1) === Definition. ===
-

Section 101 of title 17, United States 
 Code, is amended by inserting after the definition of 
 ``architectural work'' the following:
 ``An `audio transmission' is a transmission of a sound recording, 
whether in a digital, analog, or other format. This term does not 
include the transmission of any audiovisual work.''.

    (2) Conforming removal of ``digital''.--Title 17, United 
 States Code, is amended--
        (A) in 

section 112

    (e)

    (8) , by striking ``a digital 
 audio transmission'' and inserting ``an audio 
 transmission'';
        (B) in 

section 114--
            (i) in subsection
            (d) --
            (I) in paragraph

    (2) --

    (aa) in the matter 
 preceding subparagraph
        (A) , by 
 striking ``subscription 
 digital'' and inserting 
 ``subscription''; and

    (bb) in subparagraph
            (C) 
            (viii) , by striking 
 ``digital signal'' and 
 inserting ``signal''; and
            (II) in paragraph

    (4) --

    (aa) in subparagraph
        (A) , 
 by striking ``a digital audio 
 transmission'' and inserting 
 ``an audio transmission''; and

    (bb) in subparagraph
        (B)
            (i) , by striking ``a digital 
 audio transmission'' and 
 inserting ``an audio 
 transmission'';
            (ii) in subsection

    (g)

    (2)
        (A) , by striking 
 ``a digital'' and inserting ``an''; and
            (iii) in subsection

    (j) --
            (I) in paragraph

    (6) --

    (aa) by striking 
 ``digital''; and

    (bb) by striking 
 ``retransmissions of broadcast 
 transmissions'' and inserting 
 ``broadcast transmissions and 
 retransmissions of broadcast 
 transmissions''; and
            (II) in paragraph

    (8) , by striking 
 ``subscription digital'' and inserting 
 ``subscription''; and
            (C) in 

section 1401--
            (i) in subsection

    (b) , by striking ``a 
 digital audio'' and inserting ``an audio''; and
            (ii) in subsection
            (d) --
            (I) in paragraph

    (1) , by striking 
 ``a digital audio'' and inserting ``an 
 audio'';
            (II) in paragraph

    (2)
        (A) , by 
 striking ``a digital audio'' and 
 inserting ``an audio''; and
            (III) in paragraph

    (4)
        (A) , by 
 striking ``a digital audio'' and 
 inserting ``an audio''.

SEC. 3. TIMING OF PROCEEDINGS UNDER SECTIONS 112
        (E) AND 114
        (F) .

 Paragraph

    (3) of 

section 804

    (b) of title 17, United States Code, is 
amended by adding at the end the following new subparagraph:
 ``
            (D) A proceeding under this chapter shall be 
 commenced as soon as practicable after the date of the 
 enactment of this subparagraph to determine royalty 
 rates and terms for nonsubscription broadcast 
 transmissions, to be effective for the period beginning 
 on such date of enactment, and ending on December 31, 
 2028. Any payment due under 

section 114

    (f)

    (1)
            (D) shall 
 not be due until the due date of the first royalty 
 payments for nonsubscription broadcast transmissions 
 that are determined, after the date of the enactment of 
 this subparagraph, by the Copyright Royalty Judges. 
 Thereafter, such proceeding shall be repeated in each 
 subsequent fifth calendar year.''.

SEC. 4. SPECIAL PROTECTION FOR SMALL BROADCASTERS.

    (a) Specified Royalty Fees.--

Section 114

    (f)

    (1) of title 17, United 
States Code, is amended by inserting at the end the following new 
subparagraph:
 ``
            (D) 
            (i) Notwithstanding the provisions of subparagraphs
        (A) through
            (C) , the royalty rate shall be as follows for 
 nonsubscription broadcast transmissions by each individual 
 terrestrial broadcast station licensed as such by the Federal 
 Communications Commission that satisfies the conditions in 
 clause
            (ii) --
 ``
            (I) $10 per calendar year, in the case of 
 nonsubscription broadcast transmissions by a broadcast 
 station that generated revenue in the immediately 
 preceding calendar year of less than $100,000;
 ``
            (II) $100 per calendar year, in the case of 
 nonsubscription broadcast transmissions by a broadcast 
 station that is a public broadcasting entity as defined 
 in 

section 118

    (f) and generated revenue in the 
 immediately preceding calendar year of $100,000 or 
 more, but less than $1,500,000; and
 ``
            (III) $500 per calendar year, in the case of 
 nonsubscription broadcast transmissions by a broadcast 
 station that is not a public broadcasting entity as 
 defined in 

section 118

    (f) and generated revenue in the 
 immediately preceding calendar year of $100,000 or 
 more, but less than $1,500,000.
 ``
            (ii) An individual terrestrial broadcast station licensed 
 as such by the Federal Communications Commission is eligible 
 for a royalty rate set forth in clause
            (i) if--
 ``
            (I) the revenue from the operation of that 
 individual station was less than $1,500,000 during the 
 immediately preceding calendar year;
 ``
            (II) the aggregate revenue of the owner and 
 operator of the broadcast station and any person 
 directly or indirectly controlling, controlled by, or 
 under common control with such owner or operator, from 
 any source, was less than $10,000,000 during the 
 immediately preceding calendar year; and
 ``
            (III) the owner or operator of the broadcast 
 station provides to the nonprofit collective designated 
 by the Copyright Royalty Judges to distribute receipts 
 from the licensing of transmissions in accordance with 
 subsection

    (f) , by no later than January 31 of the 
 relevant calendar year, a written and signed 
 certification of the station's eligibility under this 
 clause and the applicable subclause of clause
            (i) , in 
 accordance with requirements the Copyright Royalty 
 Judges shall prescribe by regulation.
 ``
            (iii) For purposes of clauses
            (i) and
            (ii) --
 ``
            (I) revenue shall be calculated in accordance 
 with generally accepted accounting principles;
 ``
            (II) revenue generated by a terrestrial broadcast 
 station shall include all revenue from the operation of 
 the station, from any source; and
 ``
            (III) in the case of affiliated broadcast 
 stations, revenue shall be allocated reasonably to 
 individual stations associated with the revenue.
 ``
            (iv) The royalty rates specified in clause
            (i) shall not 
 be admissible as evidence or otherwise taken into account in 
 determining royalty rates in a proceeding under chapter 8, or 
 in any other administrative, judicial, or other Federal 
 Government proceeding involving the setting or adjustment of 
 the royalties payable for the public performance or 
 reproduction in ephemeral phonorecords or copies of sound 
 recordings, the determination of terms or conditions related 
 thereto, or the establishment of notice or recordkeeping 
 requirements.''.

    (b) Technical Correction.--

Section 118 of title 17, United States 
Code, is amended by striking ``

section 397 of title 47'' and inserting 
``

section 397 of the Communications Act of 1934 (47 U.S.C. 397)'' in 
each place it appears.

SEC. 5. DISTRIBUTION OF CERTAIN ROYALTIES.

 

Section 114

    (g) of title 17, United States Code, is amended--

    (1) in paragraph

    (1) , by inserting ``or in the case of a 
 transmission to which paragraph

    (5) applies'' after ``this 
 section'';

    (2) by redesignating paragraphs

    (5) ,

    (6) , and

    (7) as 
 paragraphs

    (6) ,

    (7) , and

    (8) , respectively; and

    (3) by inserting after paragraph

    (4) the following new 
 paragraph:
 ``

    (5) Notwithstanding paragraph

    (1) , to the extent that a 
 license granted by the copyright owner of a sound recording to 
 a transmitting entity eligible for a statutory license under 
 subsection
            (d) (2) extends to such entity's transmissions 
 otherwise licensable under a statutory license in accordance 
 with subsection

    (f) , such entity shall pay to the collective 
 designated to distribute statutory licensing receipts from the 
 licensing of transmissions in accordance with subsection

    (f) , 
 50 percent of the total royalties that such entity is required, 
 pursuant to the applicable license agreement, to pay for such 
 transmissions otherwise licensable under a statutory license in 
 accordance with subsection

    (f) . That collective shall 
 distribute such payments in proportion to the distributions 
 provided in subparagraphs
        (B) through
            (D) of paragraph

    (2) , and 
 such payments shall be the only payments to which featured and 
 nonfeatured artists are entitled by virtue of such 
 transmissions under the direct license with such entity.''.

SEC. 6. NO HARMFUL EFFECTS ON SONGWRITERS.

 Nothing in this Act, or the amendments made by this Act, shall 
adversely affect in any respect the public performance rights of or 
royalties payable to songwriters or copyright owners of musical works.

SEC. 7. VALUE OF PROMOTION TAKEN INTO ACCOUNT.

 Pursuant to 

section 114

    (f)

    (1)
        (B) of title 17, United States Code, 
in determining rates and terms for terrestrial broadcast radio stations 
under this Act, and the amendments made by this Act, the Copyright 
Royalty Judges shall base their decision on economic, competitive, and 
programming information presented by the parties, including whether use 
of the station's service may substitute for or may promote the sales of 
phonorecords or otherwise may interfere with or may enhance the sound 
recording copyright owner's other streams of revenue from the copyright 
owner's sound recordings.
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