2-26-14
Republican House member Doug Collins from Georgia introduced the legislation yesterday. The bill is supported by BMI and ASCAP and opposed by the NAB. The purpose of the legislation is pay publishers to "update provisions in the Copyright Act to level the playing field for songwriter, composers and publishers to receive fair compensation for the use of their intellectual property." The legislation would allow federal rate courts to consider the fair market value for a composition when establishing digital performance rates. Currently, fair market value is not one of the guidelines that the special federal court considers when it sets royalty rates. They are regulated by law or through consent decrees
The NAB says if this becomes law it could impose new costs on broadcasters that jeopardize the future of our free locally-focused service. "NAB objects to changes in law that would deal with the financial imbalance between songwriters and artists by subjecting free broadcast radio stations to new fees."
BMI Chief Executive Officer Michael O'Neill said, ?This bill is an important step on the road to fairness for the more than 600,000 songwriters and music publishers represented by BMI. The current environment, where performances of sound recordings are valued at 12 times those of the musical compositions that underlie them, is untenable. Similarly, the rates set for making copies of musical works under Section 115 are artificially depressed and lack a relationship to the marketplace. We are simply asking Congress to take the evidentiary blinders off of the judges who control a significant portion of our writers? income from public performance and mechanical royalties. We are grateful to Congressman Collins for his leadership on this important issue and for his support in co-sponsoring this important bill. We look forward to working with Congress to find an equitable solution.?
ASCAP President and Chairman Paul Williams says by udating the outdated provisions of the Copyright Act in Sections 114(i) and 115, Congress has an opportunity to modernize the music licensing system so that songwriters and composers can thrive alongside the businesses that use our music. "The Songwriter Equity Act is an important first step toward a more effective and efficient licensing system that will benefit everyone ? consumers, music licensees and the songwriters and composers who are the foundation of the rapidly changing music environment. But while technology is creating amazing opportunities for music to reach new audiences, it?s also creating real challenges for songwriters and other creators when it comes to licensing our work, because the rules that govern how we do business haven?t kept pace.
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