Washington,
DC— Today, US
Senator Orrin Hatch (R-UT) and a bipartisan group of Senators including Senators
Chuck Grassley (R-IA), Sheldon Whitehouse (D-RI), Lamar Alexander (R-TN), Chris
Coons (D-DE), John Kennedy (R-LA), Kamala Harris (D-CA), Bob Corker (R-TN),
Dick Durbin (D-IL), Johnny Isakson (R-GA), Patrick Leahy (D-VT), Mike Crapo (R-ID),
Doug Jones (D-AL), Thom Tillis (R-NC), Bill Nelson (D-FL) David Perdue (R-GA), Shelley
Moore Capito (R-WV), and Roy Blunt (R-MO) introduced a major music reform
package. The package, which is titled the Music Modernization Act,
will bring outdated music licensing laws into the 21st century and
create a fairer marketplace for songwriters and other content creators. It
combines three previously introduced pieces of legislation—the Music
Modernization Act (MMA), the Compensating Legacy Artists for their
Songs, Service, & Important Contributions to Society (CLASSICS) Act,
and the Allocation for Music Producers (AMP) Act. A similar package
recently passed the US House of Representatives by an overwhelming vote of
415-0. The bill introduced today has virtually unheard of support across the
music industry and will make a real difference for songwriters, recording
artists, producers, sound engineers, digital music companies, and other music
stakeholders.
“Though the way we listen to music may change over time, the
lasting mark music creators from all generations leave with us does not,” Grassley said. “This broadly
bipartisan package ensures that all music creators have the access to the
royalties they’ve earned and that music lovers can better access these works of
art. I’m grateful for the hard work of my colleagues and stakeholders to
advance this much-needed reform package.”
“Today’s introduction is an important step toward enacting
historic reform for our badly outdated music laws,” Hatch said. “For far too long, our old-fashioned, disorganized way
of collecting and distributing music royalties has resulted in songwriters and
other content creators being paid far too little for their work. It’s also
exposed digital music companies to significant liability and created overall
uncertainty in the music marketplace. As a songwriter myself, I know how
important these issues are. That’s why I’m so pleased we’re taking this
significant step today to bring fairness and certainty to our music laws.”
“I could not imagine a bigger boost for this legislation than to
have Senator Hatch and Senator Grassley’s leadership, and I’m proud to
cosponsor this legislation which includes the Music Modernization Act that
addresses two of the greatest challenges facing songwriters: One is that the
arrival of the Internet has meant that many songwriters aren’t paid royalties
when their songs are played, and two, when they are paid, they aren’t paid a
fair market value for their songs,” Alexander said. “This new legislation is broader, more effective,
and includes all of the provisions unanimously approved by the House of
Representatives in April. Now the Senate should do our job so this bill can
become law this year, and songwriters can finally receive the money they are
owed.”
“This legislative package will finally address the
outdated laws that have plagued the music community for years, and I’m
particularly excited that this is a bipartisan effort through and through,” Coons said. “First, this package will
help ensure that songwriters, artists, and music producers are compensated
fairly in the digital age, and second, it will make it easier for
digital music platforms to get the licenses they need to play to music that we
all love. This really is a win-win.”
“Artists who made music prior to 1972 are getting a raw financial
deal because of an antiquated loophole in our legal system. Our bill will
close that loophole and finally give the recognition and compensation that
these artists deserve. Louisiana is the birthplace of jazz. Artists
like Fats Domino who contributed to that uniquely New Orleans sound are
pioneers. They deserve fair protection and payment for their
contributions,” said Kennedy.
“I am proud to be a part of this effort.”
“As a music lover, I’m proud to cosponsor legislation that will
bring clarity and certainty to our complex music licensing system,” Leahy said. “This system has underpaid
artists and hamstrung innovative music services for far too long. I look
forward to continuing to work in a bipartisan way to bring these important
reforms across the finish line.”
Statements
of Support:
Steve Bogard,
Nashville Songwriters Association International President
“The Music
Modernization Act, Classics Act and AMP Act will together create the most
comprehensive and important copyright reform package the United States Senate
has considered in decades. This group of bills, which will also be called
collectively the Music Modernization Act, gives songwriters, artists and music
producers essential tools to achieve fair marketplace royalty rates in the
digital era. The Nashville Songwriters Association (NSAI) would like to
thank Chairman Grassley and Senators Hatch, Whitehouse and Coons for their
leadership in guiding this important legislation. We also want to note
the tireless efforts of Tennessee Senator Lamar Alexander, who has worked for
months on the reforms contained in this bill that will benefit present and
future generations of songwriters.”
Daryl P.
Friedman, Chief Industry, Government, & Member Relations Officer, Recording
Academy
“As the
organization that represents music’s creators, the Recording Academy is
grateful for the introduction of this comprehensive package. The
Academy’s songwriter, performer, producer and engineer members in every state
will advocate for passage of the Music Modernization Act and they
thank Senators Hatch, Grassley, Whitehouse, and all the original
cosponsors for their support of music makers.”
David
Israelite, National Music Publishers' Association President & CEO
“The
introduction of the Music Modernization Act package in the Senate is a massive
step forward for songwriters. Senators Orrin Hatch, Chuck Grassley, Sheldon
Whitehouse, Lamar Alexander, Chris Coons, John Kennedy, Kamala Harris, Bob
Corker, Dick Durbin, Johnny Isakson, Patrick Leahy, Mike Crapo, Doug Jones,
Thom Tillis, Bill Nelson, Shelley Moore Capito and David Perdue have done music
creators a great service by sponsoring a music licensing package which will
help not only songwriters and composers but also producers and legacy artists.
The bill improves both how and how much songwriters are paid while increasing
transparency and enabling digital music platforms to thrive. The MMA represents
unprecedented consensus around necessary updates to how music creators are
valued, and we look forward to seeing it become law.”
Elizabeth
Matthew, American Society of Composers, Authors and Publishers CEO
“After a
unanimous vote to pass the MMA in the House, we are thrilled to see such
ardent, bipartisan support for music creators in the Senate. This legislation
is critical to ensuring songwriters have a pathway to fair compensation so they
can sustain their livelihoods and create the next great songs. We applaud the
leadership of fellow songwriter Senator Hatch, along with Senators Alexander
and Whitehouse, for spearheading this effort in the Senate and to Chairman
Grassley and all other co-sponsors for being champions of American songwriters.
We look forward to the Senate’s vote and eventual passage of the MMA.”
Michael
Beckerman, President and CEO of Internet Association
“It’s past
time we brought mechanical licensing into the digital era. An updated
mechanical licensing system will promote innovation, benefit consumers, and
ensure artists are fairly compensated for their works. We commend Chairman
Hatch, Chairman Grassley, and the other MMA sponsors for taking on this
critical issue and modernizing music streaming in a meaningful way.”
Mike
O’Neill, Broadcast Music Inc. President & CEO
“BMI
applauds the introduction today, by Senators Hatch and Grassley, of the
Music Modernization Act. This legislation represents an unprecedented
collaboration among music creators and users, and represents an historic
opportunity to make meaningful music licensing reform which will benefit
America’s creative communities."
Mitch
Glazier, Recording Industry Association of America President
“The strong momentum
behind these common sense music licensing reforms continues to build, and
that’s very encouraging news to the entire music community. We are
stronger together. We’re grateful for the leadership of Senators Hatch,
Grassley, Feinstein, Kennedy, Coons, Alexander, and all of the cosponsors who
have brought this legislation in the Senate, along with musician advocates and
our digital partners who have worked tirelessly to forge this consensus
package. Today we are one step closer to realizing a more just music
marketplace for artists, songwriters, and their label and publisher partners.”
Chris Harrison, DiMA, the Digital Media Association CEO
“Streaming
music services create better value for consumers, creators and copyright
owners. We welcome the introduction of the Music Modernization Act in the Senate,
and thank Senators Hatch (R-UT), Whitehouse (D-RI), Alexander (R-TN) and Coons
(D-DE), in addition to Chairman Grassley (R-IA), for their efforts to bring the
entire music industry together on a positive path forward. By turning away from
a complicated and broken system of the past, the music industry has an
opportunity to harness the power of greater efficiency and transparency to
benefit consumers and creators alike.”
Michael
Huppe, SoundExchange President and CEO
“On behalf
of the 150,000+ music creators represented by SoundExchange, we are grateful to
Senator Hatch for building this consensus legislative package that will benefit
the entire music ecosystem. Taken together, the elements of this legislation
will strengthen and protect the rights and interests of creators—the artists,
songwriters and producers whose music enriches our lives, and it will improve
engagement between the creative community and the digital services whose
businesses rely on their work. We look forward to working with the sponsors and
the entire community of stakeholders that built accord on this package to make
it law.”
Background:
·
Music Modernization Act (MMA):
o The MMA creates a new, simplified
licensing system to make it easier for digital music companies to obtain a
license for songs.
o The simplified system will also
ensure songwriters are paid the royalties they are owed.
o In addition, the bill revises
outdated songwriter royalty standards to ensure songwriters are paid a fair
market rate for their work.
·
Compensating Legacy Artists for their Songs, Service, &
Important Contributions to Society (CLASSICS) Act:
o In the 1970s, Congress extended
federal copyright protections to sound recordings fixed after February 1972.
o The CLASSICS Act requires digital
music services to pay for the use of pre-1972 sound recordings in the same way
and at the same rate they pay for recordings fixed after 1972.
o SoundExchange, the entity that
collects and distributes digital performance royalties for sound recordings, will
collect royalties for pre-1972 recordings, as it does for recordings made after
1972.
·
Allocation for Music Producers (AMP) Act:
o Under current law, although
recording artists have a right to a percentage of the royalties collected for
digital performances of sound recordings, producers and engineers have no such
right.
o The AMP Act would establish a
procedure for producers and engineers who worked on sound recordings to apply
for a share of the royalties.
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