Legislation Would Force Radio Stations To Pay Royalties

Major Blud writes: Congressman Jerrold Nadler (D-NY) and Marsha Blackburn (R-TN) introduced the "Fair Play Fair Pay Act" today that would end regulations that allow terrestrial radio stations to avoid paying royalties to artists and labels. Currently, AM/FM radio stations aren't required to pay royalties to publishers and songwriters. The proposed measure requires stations that earn less than $1 million a year in revenue to pay $500 annually. For nonprofit public, college and other non-commercial broadcasters, the fee would be $100 per year. Religious and talk stations would be exempt from any payments. Larger radio companies like iHeartMedia (858 stations in the U.S.) would have to pay more.

"The current system is antiquated and broken. It pits technologies against each other, and allows certain services to get away with paying little or nothing to artists. For decades, AM/FM radio has used whatever music it wants without paying a cent to the musicians, vocalists, and labels that created it. Satellite radio has paid below market royalties for the music it uses, growing into a multibillion dollar business on the back of an illogical 'grandfathered' royalty standard that is now almost two decades old," said Congressman Nadler.

Comments

ASCAP and BMI

[Sylak]

So what you're saying is my college radio didn't need to pay ASCAP and BMI?

Re:ASCAP and BMI

[dgatwood]

In theory, yes, sampling tends to result in large errors for small values, in both directions.

In practice, I think the sampling mostly covers large stations in major markets, so I'd expect it to skew away from low-play bands a lot more often than it skews towards them. But that's just a gut feeling; I could be wrong.

Re:ASCAP and BMI

[sg_oneill]

Yeah I can attest to this. I know for a fact my album was played a number of times on various US radio stations, but acording to ASCAP it never was at all.

Which is kind of annoying, because at least one of those stations was fairly big in California . if I'm not mistaken.

Free advertising

[ShaunC]

For decades, AM/FM radio has used whatever music it wants without paying a cent to the musicians, vocalists, and labels that created it.

That's because radio is free advertising for the artists. Now they want the free advertising and to get paid for it, too? In decades past, the labels would bribe radio station PD's to get their music played; I wonder if they'd rather return to that model where it costs them money (and coke, and cars, and plane tickets) to get their artists some airtime?

Speaking of payola, it should come as no surprise that "TV/Movies/Music" are among the top 3 industries donating money to both Mr. Nadler and Ms. Blackburn.