H.R. 861: American Music Fairness Act of 2025

The American Music Fairness Act of 2025 is a proposed piece of legislation that aims to amend copyright laws related to the use of sound recordings by radio stations and other audio transmission services. Below is a summary of its main points:

1. Performance Rights for Terrestrial Broadcasts

The bill would establish that all forms of audio transmissions, including those from traditional radio (terrestrial broadcasts), require a performance right, which means radio stations would need to pay royalties to artists for playing their recordings. It seeks to ensure that terrestrial broadcasts receive the same treatment as digital audio platforms.

2. Inclusion in Existing Licenses

It would modify existing licensing agreements to make sure that terrestrial radio stations are included under the same statutory license agreements that apply to digital platforms, creating a more equitable framework for paying royalties.

3. Timing of Royalty Proceedings

The bill sets specific timelines for determining royalty rates and terms for nonsubscription broadcast transmissions. The intent is to have a process in place quickly after the bill’s enactment to set rates effective until 2028, which would then be reviewed every five years.

4. Special Protections for Small Broadcasters

Small broadcast stations would receive lower royalty fees based on their annual revenue:

• $10 per year for stations with revenue under $100,000
• $100 per year for public broadcasters generating between $100,000 and $1.5 million
• $500 per year for non-public stations with similar revenue

5. Distribution of Royalties

The bill introduces specific rules regarding how royalties are distributed. It stipulates that if a transmitting entity has a license extending to statutory license transmissions, they must pay a percentage of their royalties to a designated collective that distributes them fairly to artists.

6. Protection for Songwriters

Importantly, the act clarifies that nothing in this legislation would negatively impact the rights or royalties of songwriters and copyright holders of musical works, ensuring they remain protected under the law.

7. Value of Promotion Considered

In determining royalty rates and terms, the Copyright Royalty Judges would consider additional factors, such as whether the radio station provides promotional benefits that could enhance the sales of recorded music or other revenue streams for copyright owners.

Relevant Companies

• SIRI (Sirius XM Holdings Inc.): As a major satellite radio provider, this bill may affect Sirius XM's content strategy and costs associated with music licensing.
• OMC (Omnicom Group Inc.): A potential impact on advertising strategies for media companies connected to terrestrial radio could be expected due to changes in royalty obligations.