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U.S. House Subcommittee Passes Bill to Provide Royalty Payments to Artists from Radio Broadcasters

Performance Rights Act of 2007
H.R.4789, 06/25/2008

Basic Information

The U.S. House of Representatives Subcommittee on Courts, the Internet, and Intellectual Property (“House Subcommittee”) approved a bill seeking to provide fair compensation to artists for use of their sound recordings. The bill, known as “The Performance Rights Act of 2007,” will remove a decades-old exemption in federal copyright law that excuses local radio stations from paying royalties to performers.  The proposed legislation makes clear that nothing in the “Performance Rights Act” will adversely affect the current public performance rights or royalties payable to songwriters or copyright owners of musical works.

The proposed legislation amends federal copyright law to grant performers of sound recordings a right to compensation from terrestrial broadcasters.  It also establishes a flat annual fee in lieu of royalty payments for individual terrestrial broadcast stations with gross annual revenues of less than $1.25 million, and for non-commercial, public broadcast stations. Further, terrestrial broadcast stations could option to pay a per-program license if they only intend to make limited feature uses of sound recordings.

The proposed legislation carves out an exemption from the new requirement of royalty payments for broadcasters of religious services and for broadcasters making only incidental uses of musical sound recordings.

The House Subcommittee referred the bill to the U.S. Senate Committee on the Judiciary (“Senate Committee”) on December 18, 2008.  The Senate Committee continues with deliberations on the bill’s provisions.

Rep. Howard L. Berman (CA-28) and Sen. Patrick Leahy (VT) introduced the bill on their respective congressional floors on December 18, 2007.

View a PDF of the proposed legislation.

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Companies Mentioned

Copyright Law

The following companies are mentioned in Copyright Law Updates:

American Society of Composers, Authors, and Publishers

Northern Lights Products, Inc. d.b.a. GlowProducts.com

Litecubes, LLC

Poof Apparel Corp.

Derek Andrew, Inc.

Metro-Goldwyn-Mayer Pictures, Inc.

Mattel, Inc.

Geoffrey Productions, Inc.

MGA Entertainment, Inc.

Universal City Studios LLLP

Twentieth Century Fox Film Corp.

Turner Network Television LP, LLLP

Turner Network Sales, Inc.

Turner Classic Movies, LP, LLLP

Turner Broadcasting System, Inc.

The Cartoon Network LP, LLP

Paramount Pictures Corp.

NBC Studios, Inc.

Disney Enterprises, Inc.

CSC Holdings, Inc.

CBS Broadcasting Inc.

Cablevision Systems Corp.

Cable News Network LP, LLLP

American Broadcasting Companies, Inc.

Westbound Records, Inc.

UMG Recordings, Inc.

Janice Combs Publishing, Inc. d.b.a. Justin Combs Publishing

Bad Boy Records LLC

Bad Boy Entertainment, Inc. d.b.a. Bad Boy Records

Yahoo! Inc.

Television Music License Committee

SESAC, Inc.

RealNetworks, Inc.

AOL LLC f.k.a. America Online, Inc.

Sony ATV Tunes, LLC

3D Recon

MLE Music

Saatchi & Saatchi North America

Julie Ann’s, Inc.

National Geographic Society

Julie Ann Bible

National Geographic Enterprises, Inc.

Hampshire House Publishing Corp.

Mindscape, Inc.

YouTube, LLC

YouTube, Inc.

Viacom, Inc.

Google, Inc.

Future Association Premier League Limited

H2O Industrial Services, Inc.

Additional Resources

Copyright Law

Copyright Act of 1976 (pdf, 1.4mb)

Intellectual Property Protection and Courts Amendments Act of 2004 (pdf, 72kb)

Satellite Home Viewer Extension and Reauthorization Act of 2004 (pdf, 3.7mb)

Individuals with Disabilities Education Improvement Act of 2004 (pdf, 422kb)

Copyright Royalty and Distribution Reform Act of 2004 (pdf, 102kb)

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