American Music Fairness Act of 2025
- Bill Number
- H.R. 861
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-01-31: Referred to the House Committee on the Judiciary.
- Last Updated
- 2026-02-24T09:05:47Z
AI-Generated Summary
Purpose
The American Music Fairness Act of 2025 aims to create a fairer system for compensating recording artists and copyright owners when their sound recordings (audio tracks fixed in a medium like a CD or digital file) are played on terrestrial radio stations (over-the-air FM/AM broadcasts). Currently, these stations do not pay royalties for sound recordings, unlike digital streaming services. The Act extends existing digital performance rights to include terrestrial broadcasts, while providing protections for smaller radio stations and ensuring no negative impact on songwriters (composers of musical works).
Key Provisions
- Expansion of Performance Rights (Section 2): Amends U.S. copyright law (Title 17) to include "audio transmissions" broadly, covering both digital and analog formats like traditional radio broadcasts. This removes the exemption for terrestrial radio, making public performance of sound recordings via any audio transmission subject to royalties.
- Statutory Licensing and Rates (Section 3): Requires the Copyright Royalty Judges (a panel that sets royalty rates) to begin proceedings soon after enactment to determine rates for "nonsubscription broadcast transmissions" (free, over-the-air plays). Rates apply from the enactment date through 2028, with reviews every five years thereafter. No payments are due until the first rates are set.
- Protections for Small Broadcasters (Section 4): Offers reduced flat annual royalty fees for eligible small stations based on revenue:
- $10/year for stations with under $100,000 in prior-year revenue.
- $100/year for public stations (non-commercial, like NPR affiliates) with $100,000–$1.5 million in revenue.
- $500/year for commercial stations with $100,000–$1.5 million in revenue.
Eligibility requires station revenue under $1.5 million and owner/operator group revenue under $10 million; stations must certify eligibility annually. These rates cannot influence broader royalty negotiations.
- Royalty Distribution (Section 5): Ensures 50% of royalties from certain direct licenses (private agreements between stations and copyright owners) for statutorily licensable transmissions go to a designated collective (nonprofit group) for distribution to artists and others, following existing proportions for featured/non-featured performers.
- Safeguards for Songwriters (Section 6): Explicitly states the Act does not harm songwriters' public performance rights or royalties for musical compositions (the underlying songs, separate from recordings).
- Consideration of Promotional Value (Section 7): Instructs Copyright Royalty Judges to factor in how radio airplay promotes record sales and other revenue streams for copyright owners when setting rates, balancing economic and competitive evidence.
Significant Changes to Existing Law
- Broadens Definitions and Scope: Replaces "digital audio transmission" with "audio transmission" in copyright law, explicitly including terrestrial (analog) broadcasts for the first time. This eliminates the long-standing exemption under Section 114, where terrestrial radio paid royalties only for musical works (songs) but not sound recordings.
- Introduces New Licensing Framework: Adds statutory licenses for terrestrial broadcasts, similar to those for digital services like SiriusXM or Pandora, but with tailored timelines and small-station carve-outs. Technical amendments update references throughout Title 17 to remove "digital" limitations.
- Royalty Mechanics: Shifts from no royalties for sound recordings on terrestrial radio to mandatory payments, while protecting small entities with fixed low fees instead of percentage-based rates used for larger services.
Potential Impacts
- On Government Agencies: The Copyright Royalty Judges and Copyright Office will handle new proceedings, certifications, and distributions, increasing administrative workload but formalizing processes for equitable royalty collection.
- On Citizens: Recording artists and performers gain new income from radio plays, potentially boosting earnings for musicians. Listeners face no direct change in access to free radio, but stations might adjust programming if costs rise for larger ones.
- On Radio Stations: Small and public stations benefit from affordable fees, preserving local and non-commercial broadcasting. Larger commercial stations will incur new costs (estimated in proceedings), possibly leading to higher ad rates or format shifts, but promotional value considerations may mitigate this.
- On International Relations: Could influence U.S. trade negotiations on intellectual property, as many countries already require terrestrial radio royalties; this aligns the U.S. more closely with global standards under treaties like the WIPO Performances and Phonograms Treaty, potentially strengthening artist protections abroad.
Main Stakeholders Affected
- Recording Artists and Copyright Owners (Labels): Primary beneficiaries, receiving royalties for sound recordings played on terrestrial radio for the first time.
- Terrestrial Radio Stations: Especially small, local, and public broadcasters, who get fee protections; larger chains face new payment obligations.
- Songwriters and Music Publishers: Unaffected negatively, with rights to musical work royalties preserved.
- Digital Streaming Services: Indirectly impacted through aligned licensing rules, but no new burdens.
- Nonprofit Collectives (e.g., SoundExchange): Tasked with collecting and distributing royalties, gaining expanded role.
- Copyright Royalty Judges: Responsible for rate-setting and oversight.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Establishes a new public performance right for sound recordings, potentially leading to litigation over eligibility certifications or rate calculations. The Act's carve-outs for small stations create a tiered system, which may require regulations to prevent abuse (e.g., revenue allocation for affiliates).
- Constitutional Implications: Aligns with the Copyright Clause (Article I, Section 8) by promoting progress in arts through fair compensation, without infringing free speech or due process, as it applies only to commercial uses and includes judicial rate-setting for fairness.
- Political Implications: Bipartisan sponsorship (Democrats and Republicans) reflects compromise between artist advocacy groups (pushing for royalties) and broadcaster lobbies (seeking small-station protections). It could set precedent for future IP reforms, balancing economic incentives for creators against media industry concerns, amid debates over digital vs. traditional media equity.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (13)
Rep. Nadler, Jerrold [D-NY-12], Rep. Green, Mark E. [R-TN-7], Rep. McClintock, Tom [R-CA-5], Rep. Lieu, Ted [D-CA-36], Rep. Doggett, Lloyd [D-TX-37], Rep. Raskin, Jamie [D-MD-8], Rep. Brownley, Julia [D-CA-26], Rep. Chu, Judy [D-CA-28], Rep. Jayapal, Pramila [D-WA-7], Rep. Friedman, Laura [D-CA-30], Rep. Evans, Dwight [D-PA-3], Rep. Gooden, Lance [R-TX-5], Rep. Kamlager-Dove, Sydney [D-CA-37]
Recent Actions
- 2025-01-31: Referred to the House Committee on the Judiciary.
- 2025-01-31: Introduced in House
- 2025-01-31: Introduced in House
Bill Versions
- American Music Fairness Act of 2025 — issued 2025-01-31 — PDF (11 pages)