A group of senators unveiled legislation on Monday that would ensure songwriters are compensated based on the fair market value of the songs they write.
Sens. Lamar Alexander (R-Tenn.), Orrin Hatch (R-Utah) and Bob Corker (R-Tenn.) co-authored the Songwriter Equity Act.
The legislation would direct the federal Copyright Royalty Board to replace its current below-market standard for compensating songwriters and establish fair market compensation based on music downloads and CD purchases.
“The music business is one of the toughest industries out there, and our songwriters and composers shouldn’t have to accept artificially low royalty rates for their works,” Hatch said. “Allowing them to receive the fair market value for their songs is the right thing to do, and I’m pleased to support this bill that will do just that.”
The measure would also repeal a provision of federal law that narrows the evidence that a federal rate court can examine when considering what compensation a songwriter deserves for a song being played in a restaurant or at a concert.
“Italy has its art, Egypt has its pyramids, Napa Valley has its wines and Nashville has its songwriters,” Alexander said. “Songwriters are the lifeblood of Music City, and their paychecks ought to be based on the fair market value of their songs – so that when they write a hit heard around the world, you can see it in their billfolds.”
The Copyright Royalty Board currently sets songwriter compensation. The rate has increased seven cents over the last 100 years.