Modernizing Music Copyright Law to Ensure Digital Services Pay Royalties (H.R. 5447)
Do you support or oppose this bill?
What is H.R. 5447?
(Updated December 16, 2018)
This bill — the Music Modernization Act — would update several provisions of U.S. copyright law regarding music licensing to reflect how digital music services operate while ensuring that royalties can be collected on pre-1972 recordings and by creative professionals. A summary of its three sections (the Music Modernization Act, the CLASSICS Act, and the AMP Act) can be found below.
Music Modernization Act
This section would establish a music licensing collective to license musical copyrights, collect and distribute royalties from digital music providers. It would also maintain a public database of compositions, their owners, who wrote them, and who administers them. The costs of maintaining the new non-profit collective would be paid for through royalties from licensees.
The Copyright Royalty Board would use uniform rate setting standards for all music services which would be established by proceedings in which copyright holders and licensees negotiate a rate schedule, which would be in effect until a successor schedule is agreed by the parties.
CLASSICS Act
This section would require the payment of royalties to both rights holders and artists for the use of their recordings which were made before 1972. Currently, digital broadcasters don’t pay royalties on songs recorded prior to 1972.
Its full title is the Compensating Legacy Artists for their Songs, Service, and Important Contributions to Society (CLASSICS) Act.
AMP Act
This section would enable record producers, sound engineers, and other creative professionals to receive compensation for their work when their recordings are used on satellite and online radio services.
Its full title is the Allocation for Music Producers (AMP) Act.
Argument in favor
Copyright law as it relates to music is badly outdated, and this bipartisan bill would ensure that artists, producers, and engineers get paid royalties by digital streaming services.
Argument opposed
There’s no need to update music copyright law to reflect changes in technology, as artists are able to collect royalties and earn a living the way the law is currently.
Impact
Musicians, producers, and engineers; the music licensing collective; and digital music services.
Cost of H.R. 5447
A CBO cost estimate is unavailable.
Additional Info
In-Depth: Sponsoring Rep. Bob Goodlatte (R-VA) introduced this bill to update music copyright law to ensure that artists, producers, and engineers receive royalties for their work in the digital era:
“Today’s Committee passage of the bipartisan Music Modernization Act is the culmination of the House Judiciary Committee’s comprehensive multi-year review of our nation’s copyright laws, as well as years of effort by interested stakeholders and many members of our Committee. This legislation, which is the first major update to our music licensing laws in decades, brings early 20th century music laws for the analog era into the 21st Century digital era.”
Original cosponsor Rep. Jerrold Nadler (D-NY) added:
“Today’s Judiciary Committee passage of the Music Modernization Act is the culmination of several years of hard work, and I appreciate the many stakeholders across the music industry, and all of my colleagues, who worked with Chairman Goodlatte and me to bring us to this point. This vital legislation will bring the music licensing system into the digital age and I look forward to working with the Chairman, and all those who made this bill a reality, to see that it is enacted into law.”
This legislation passed the House Judiciary Committee on a 32-0 vote and has the support 46 bipartisan cosponsors, including 25 Democrats and 21 Republicans.
Media:
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Sponsoring Rep. Bob Goodlatte (R-VA) Press Release
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House Judiciary Committee Press Release
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ABC
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Countable
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Tennesseean
Summary by Eric Revell
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