Same Old Tune in Radio’s Royalty Debate
The music industry’s battle against a performance royalty for radio airplay isn’t going anywhere. Again, a majority of House lawmakers have made it clear they’re opposed.
Recently, the Local Radio Freedom Act has gained traction, with 221 lawmakers now signing on. This bipartisan response signals a strong resistance to any changes in copyright law as the bill prepares for a vote.
New names like Reps. Jonathan Jackson (D-IL), Neal Dunn (R-FL), Derek Tran (D-CA), John Carter (R-TX), and Tony Gonzalez (R-TX) have joined the ranks since the Senate Judiciary Committee held its first hearing on the matter in over a decade. Sen. Tom Tillis (R-NC), a supporter of the royalty, hinted that there will be “some action” on these proposals, reflecting a growing urgency in Congress to address the issue, possibly pushing the Local Radio Freedom Act even further into the spotlight.
This act (H.Con.Res.12 / S.Con.Res.8) stands firmly against “any new performance fee, tax, royalty or other charge” on radio stations. While it lacks binding power, it contrasts sharply with the American Music Fairness Act (S. 326 / HR 861), which would require broadcast stations to cough up royalties for playing music. The Copyright Royalty Board would be tasked with setting five-year licensing agreements between radio and the music industry.
The National Association of Broadcasters claims such a royalty would disrupt a century-old relationship that has played a crucial role in promoting music. They argue that airplay has generated billions in exposure for artists and fear that new fees could cripple local stations, limiting their ability to provide critical news, weather, and emergency updates.
“The majority of the House clearly understands the vital role local radio plays in communities across the country,” said NAB President and CEO Curtis LeGeyt. “These lawmakers recognize that radio is more than just entertainment; it’s a trusted partner in times of crisis.”
Beyond the House, the Local Radio Freedom Act has also attracted 26 co-sponsors in the Senate. This isn’t the first time resolutions like this have gained traction; previous Congresses have seen similar bipartisan support, with over 250 lawmakers backing the cause last time around.
The NAB has urged the music industry to settle this age-old dispute in a “holistic” manner, covering not just on-air royalties but also online simulcasting fees. Unfortunately, progress has been painfully slow. Despite years of meetings at the behest of lawmakers, real solutions remain elusive. LeGeyt emphasized this willingness to negotiate during a hearing last year, stating, “NAB stands ready and willing to be in a conference room.”
For more information on the ongoing struggle, check out the NAB website.
And don’t forget to keep an eye on how this plays out. The fight is far from over.