The vote was 415 to 0. The Act combines previously introduced legislation and reforms music licensing laws. The goal is to reward creativity and encourage innovation in the digital age. This new legislation should have very little impact on radio. Here’s what NAB CEO Gordon Smith had to say about the Act.
“NAB applauds the House passage of the Music Modernization Act, which provides a consensus solution to music licensing issues facing songwriters, music publishers, and on-demand streaming services. We especially thank Chairman Goodlatte, Ranking Member Nadler, and Representatives Collins, Jeffries, and Issa for their work to address the concerns of America’s hometown radio and television stations. We look forward to working with lawmakers in the Senate to advance this important legislation.”
Chris Israel, musicFIRST’s Executive Director, called it a historic day for music creators. “Comprehensive music licensing reform enjoyed broad support in the House and throughout the entire music industry. As the effort to update America’s music laws moves to the Senate, it’s critical for Senators to consider the package of legislation in a holistic rather than individual manner. Enacting the entire Music Modernization Act package approved overwhelmingly by the House will provide much-needed updates to music licensing and create a framework benefiting music creators, listening platforms, and fans well into the future.”
Here are the key provisions in the legislation:
– The Act creates a blanket licensing system to quickly license and pay for musical work copyrights.
– It discourages music litigation that generates legal settlements in favor of simply ensuring that artists and copyright owners are paid in the first place without such litigation.
– Ends the flawed U.S. Copyright Office bulk notice of intent system that allows royalties to not be paid.
– Implements uniform rate-setting standards to be used by the Copyright Royalty Board for all music services.
– Shifts the costs of the new licensing collective created by the bill to the licensees.
– Updates how certain rate court cases are assigned in the Southern District of New York.
– The Act also provides a public performance right for pre-1972 recordings.
– And the Act ensures that record producers, sound engineers, and other creative professionals receive compensation for their work.
