Big news: the United States Senate has passed the Music Modernization Act by unanimous consent.
The passing of the bipartisan bill, which was co-sponsored by more than 80 Senators, sets into motion an overhaul of music licensing legislation in the US.
The comprehensive bill includes the CLASSICS Act, legislation that guarantees artists and labels who recorded music before 1972 a federal right to be paid for those recordings when played by digital radio outlets.
The Senate-passed bill now awaits reconsideration by the House and signature by the President.
Today’s news follows the unanimous passing of the bill in the US House of Representatives in April.
NMPA President and CEO David Israelite said: “Today is a momentous day for songwriters, artists, composers, producers, engineers and the entire industry that revolves around them. The Senate vote marks a true step forward towards fairness for the people at the heart of music who have long been undervalued due to outdated laws.
“This was a long and complex process but ultimately the music industry has come out stronger and more united than ever. We commend Senators Orrin Hatch, Lamar Alexander, Chuck Grassley and Senate Leadership for swiftly moving this bill to the floor. Now we anxiously await the House’s final approval of the MMA and seeing it signed into law.”
“Today is a momentous day for songwriters, artists, composers, producers, engineers and the entire industry that revolves around them.”
David Israelite, NMPA (pictured)
Mitch Glazier, President, Recording Industry Association of America (RIAA) said: “As legendary band the Grateful Dead once said in an iconic pre-1972 song, ‘what a long strange trip it’s been.’ It’s been an epic odyssey, and we’re thrilled to almost be at our destination.
“For the modern U.S. Senate to unanimously pass a 185-page bill is a herculean feat, only achievable because of the grit, determination and mobilization of thousands of music creators across the nation.
“The result is a bill that moves us toward a modern music licensing landscape better founded on fair market rates and fair pay for all. At long last, a brighter tomorrow for both past and future generations of music creators is nearly upon us. We are indebted to the leadership of Senators Hatch, Grassley, Feinstein, Alexander, Coons, Kennedy and Whitehouse for helping get us there.”
“The outcome of this collaboration is a law that sets a new framework to guide the future of the music industry.”
Michael Huppe, SoundExchange
SoundExchange President and CEO Michael Huppe said: “The future of the music industry got brighter today. Creators of music moved one step closer to getting paid more fairly. And industry forces that fought to maintain an unfair and harmful status quo were rebuffed. Now, SoundExchange’s 170,000-member community has just one word for the House of Representatives: Encore.”
“The Music Modernization Act proves what can happen when constructive industry leaders work together towards a greater good. The SoundExchange community joined a historic coalition of artists, labels, songwriters, music publishers, streaming services, performance rights organizations, producers, engineers and unions.
“The outcome of this collaboration is a law that sets a new framework to guide the future of the music industry. There are still issues regarding creator fairness that we need to address, but today we celebrate a new era of cooperation and progress across the industry.”
And NMPA Board Chairman Irwin Robinson said: “The Senate’s passage of the Music Modernization Act is the most exciting development I’ve seen in my career. Songwriters have suffered long enough and this bill will allow them to be paid fairly by the streaming companies that rely on their work. We got to this point because of the advocacy of hundreds of music creators who rallied behind the MMA and who will drive the future of the music industry. I look forward to seeing the MMA become law and watching the songwriters, composers, artists and producers who will greatly benefit.”
The Music Modernization Act package contains three key elements:
- The Music Modernization Act reforms Section 115 of the U.S. Copyright Act to create a single licensing entity that administers the mechanical reproduction rights for all digital uses of musical compositions – like those used in interactive streaming models offered by Apple, Spotify, Amazon, Pandora, Google and others. It also repeals Section 114(i) and, consistent with most federal litigation, utilizes random assignment of judges to decide ASCAP and BMI rate-setting cases.
- The CLASSICS Act (Compensating Legacy Artists for their Songs, Service, & Important Contributions to Society Act) would benefit artists and music creators who recorded music before 1972 by establishing royalty payments whenever their music is played on digital radio. SoundExchange would distribute royalties for pre-’72 recordings played by Internet, cable and satellite radio services just as it does for post-’72 recordings. Currently only sound recordings made after 1972 receive payments from digital radio services under federal law.
- The AMP Act (Allocation for Music Producers Act) for the first time adds producers and engineers, who play an indispensable role in the creation of sound recordings, to U.S. copyright law. The bill codifies into law the producer’s right to collect digital royalties and provides a consistent, permanent process for studio professionals to receive royalties for their contributions to the creation of music.
Music Business Worldwide