The recent hearing on the American Music Fairness Act (AMFA) by the House Judiciary Committee’s Subcommittee on Courts, Intellectual Property, and the Internet underscored the pressing need for reform in the music industry’s copyright regime. The core issue remains that artists do not receive royalties when their recordings are broadcasted on AM/FM radio due to the absence of a terrestrial broadcast right for sound recordings under current U.S. copyright law.
In today’s digital era, the tracking and documentation of music usage have become remarkably straightforward through modern technology. This applies not only to online and streaming services but also to public performances on TV, radio, in cafes, restaurants, and event venues. Implementing music recognition systems in point-of-sale terminals and automating airplay reports is entirely feasible with current technological capabilities.
The primary interest for many Performance Rights Organizations (PROs) lies in issuing licenses to broadcasters based on region and audience size. However, the transparency and accuracy of airplay reports are often neglected, leading to opaque operations. The lack of transparency in the administration of these reports has significant implications for the equitable distribution of royalties.
The pivotal issue at hand is the establishment of global standards for licensing and the distribution of royalties. Creating a unified and transparent system would streamline the process of tracking music usage and ensure fair compensation for artists, authors, and rights holders. Implementing global standards would harmonize licensing practices and facilitate a more equitable distribution of royalties internationally.
Such reforms would dramatically increase the revenue streams for artists and authors by eliminating intermediaries and reducing administrative overhead. A transparent royalty distribution system would mitigate potential abuses and ensure fair remuneration for all stakeholders in the music industry.
It is imperative for legislators and the public to recognize the necessity of modernizing the current framework and to support the adoption of innovative technologies and global standards for royalty tracking and distribution. This advancement would represent a significant leap forward for the industry, fostering sustainable growth and providing robust support for talented artists and authors.
By embracing these changes, we can create a fairer and more efficient system that adequately compensates creators and supports the ongoing evolution of the music industry.
On June 26, the House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet held a hearing titled “Radio, Music, and Copyright: 100 Years of Inequity for Recording Artists.” In our latest blog, read the hearing summary by Punit Motiwala on what witnesses and lawmakers had to say during this important event! https://lnkd.in/eAdRv3ek
