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American Music Fairness Act aims to collect royalties for radio airplay

Lawrence “Boo” Mitchell, the chapter governor of the Memphis chapter of the Recording Academy, testified before the U.S. House Judiciary Committee on February 2 at a hearing titled “Respecting Artists with the American Music Fairness Act.” The hearing focused attention on the lack of a performance right for sound recordings on traditional broadcast radio. As a Grammy-winning producer, engineer, musician, and the co-owner of Royal Studios in Memphis, Mitchell spoke powerfully about how the lack of performance royalties from radio hurts everyone involved in making a record.

“It’s about the backbone…the people that make the music,” Mitchell said. “I don’t get promotion for ‘Uptown Funk.’ It’s not just about the featured artists but the blue collar people that go in to help make these great records.”

The American Music Fairness Act would establish a performance right for sound recordings played on AM/FM radio stations so that the artists, performers, vocalists, producers, and other music makers involved in the creation of a record can receive fair compensation. The bill also safeguards the royalties received by songwriters, and it contains key protections for small broadcasters to ensure that local and community radio stations can continue to thrive.

Mitchell was joined in testimony by Grammy-winning vocalist Gloria Estefan and Nashville musician Dave Pomeroy.

According to an article published in Variety on June 24, 2021, “The United States is the only major country in the world where terrestrial radio pays no royalties to performers or recorded-music copyright owners of the songs they play, a situation that is largely due to the powerful radio lobby’s influence in Congress. While the more than 8,300 AM and FM stations across the country pay royalties to songwriters, they have never paid performers or copyright holders, although streaming services do.”

Reps. Ted Deutch (D-FL) and Darrell Issa (R-CA) introduced the bipartisan American Music Fairness Act in June 2021. The act was in part a response to the Local Freedom Radio Act sponsored by Steve Womack (R-AR) and Kathy Castor (D-FL) that sought to protect terrestrial radio’s royalty-free status that was championed by the National Association of Broadcasters (NAB).

“NAB strongly opposes the American Music Fairness Act or any imposition of a performance royalty on America’s local radio stations,” said president/CEO Gordon Smith. “For decades, broadcast radio has enjoyed a mutually beneficial relationship with the music industry, launching and sustaining the careers of countless artists, promoting album sales and streams, and helping to foster a robust music-creation environment that is the envy of the world.”

The bill does provide an exemption for small, local radio broadcasters with less than $1.5 million in annual revenue and whose parent companies make less than $10 million in overall annual revenue. For less than $2 per day ($500 annually), small and local stations will be able to play unlimited music. Qualified public, college, and other noncommercial stations would only pay $100 annually.

For more information about the legislation, visit here.