Members applaud House approval of bill modernizing music licensing system

The U.S. House of Representatives on April 25 unanimously approved bipartisan legislation to bring sweeping reforms to the licensing system for copyrighted music, the first such major update in decades, with support from U.S. Reps. Thomas Rooney (R-FL), Steve Scalise (R-LA), Doug Collins (R-GA) Darrell Issa (R-CA) and Lamar Smith (R-TX).

Introduced by U.S. Reps. Bob Goodlatte (R-VA) and Jerrold Nadler (D-NY), the Music Modernization Act, H.R. 5447, would create a blanket licensing system for music copyrights. The new system aims to make the licensing and payment process faster and more equitable. Reps. Rooney, Scalise, Collins, Issa and Smith were among the bill’s 49 cosponsors.

“Today the House took a historic step toward ensuring the music industry can continue to flourish by modernizing our music copyright laws so music creators are fairly compensated for their works,” Rep. Goodlatte, chairman of the House Judiciary Committee, said.

H.R. 5447 would end the U.S. Copyright Office’s bulk notice of intent system, which can allow royalties to go unpaid, according to background provided by the House Judiciary Committee. The Copyright Royalty Board also would be given standards to establish uniform rates under the bill.

“By updating copyright laws for the digital age, the Music Modernization Act encourages Americans to keep producing the anthems that punctuate our lives,” said Rep. Collins, the vice chair of the U.S. House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet. “Now the Senate has the opportunity to prove what I know to be true, that both sides of the Capitol value American innovation and artistry.”

Rep. Issa, the chairman of the Subcommittee on Courts, Intellectual Property, and the Internet, said the bill would launch a “fresh, new era for the music industry” by eliminating uncertainties for creators and distributors of music. The measure approved by the House includes Rep. Issa’s CLASSICS Act, H.R. 3301, which stands for Compensating Legacy Artists for their Songs, Service, and Important Contributions to Society. Introduced in July 2017, the bill would ensure that performers are paid for songs recorded prior to 1972.

“Stakeholders from across the industry — including record labels and publishers, both small and large, and digital services such as Spotify and Pandora — should be applauded for their tireless efforts to find common ground,” Rep. Issa added. “While there is work still to be done — including correcting the lack of a terrestrial performance royalty — this legislation is tremendous progress and I am thrilled to have been a part of the process.”

H.R. 5447 also includes legislation led by Rep. Rooney, the Allocation for Music Producers (AMP) Act, H.R. 881, to provide direct payment of recording performance royalties to record producers, sound engineers and others involved in the process. Rooney introduced the bipartisan bill with U.S. Rep. Joseph Crowley (D-NY) in February 2017.

“Though we may come from different backgrounds, cultures and parts of the world, music is the language which unites us all,” Rep. Rooney said. “American artists have contributed a great deal to the music industry, but are often bogged down by out-of-date laws which don’t allow them to be paid fairly for their art.”

Following approval of H.R. 5447, House Majority Whip Scalise said songwriters and entertainers deserve to be paid fairly for their works of art, and the Music Modernization Act would “ensure that our laws reflect the changing marketplace so that these artists and the music industry as a whole can continue to flourish.”

“With revenue from digital music streaming expected to double in the coming years, it is important that this bill become law so we can keep up with the changing dynamics of this great American industry,” Rep. Scalise said. Noting that his home state of Louisiana is the birthplace of jazz, Scalise said the bill will protect the legacies of musicians, “and ensure current and future artists’ interests and inspiration are fairly represented.”

“It’s important that those of us who own intellectual property (songs and recordings) be compensated properly for their use based on new technologies and methods of music consumption,” said Mark Samuels, president of Basin Street Records in New Orleans.

Rep. Smith, who serves as chairman of the Science, Space, and Technology Committee, called House approval of the bill “an historic vote” that would help modernize outdated copyright laws.

“The legislation updates our music licensing laws to ensure that music creators receive fair compensation for their work and that digital music services have an efficient licensing system to deliver music on the most up-to-date technology. Music lovers continue to enjoy their favorite songs,” said Rep. Smith.