What it means for artists

SESAC SUPPORT: SESAC reaches an agreement with songwriters and publishers who put the law on music modernization

What does the law on the modernization of music

The Music Modernization Act creates a new organization to identify copyright holders on the composition of a song and to pay them the digital royalties they owe them when their music is broadcast on Spotify, Apple Music and other streaming services.

The new organization will be led by publishers and songwriters, and the responsibility for finding and paying copyright owners will no longer be a matter of streaming. That's why Spotify and the professional streaming association have supported the bill. These companies have been subject to costly class action lawsuits and subsequent settlements by songwriters who have stated that their songs were used without proper license.

The bill also aims to improve royalty payments for songwriters by creating a new legal standard that judges can use to set tariffs. Under the new standard, judges can take into account the market value of a song – including the amount that a song recovers when it is placed in a commercial or television show, and how much a house of discs is paid for a similar license. These standards are expected to increase streaming rates and thus increase pay days for songwriters, who have complained that the copyright system is outdated and unfair.

In an 11-hour concession to SiriusXM, the bill was amended to delay the implementation of the new pricing standard for several years, until the next federal court decision on the new tariff for the company. Internet radio.

Bart Herbison, executive director of the Nashville Songwriters Association International, called the breakthrough legislation for songwriters.

"We are changing the government rules we have been trying to change since 1909," said Herbison. "There are elements of the law that we tried to stop in 1909 and since then we have been working for these reforms.

"For the layman, it's money for songwriters. They will do more streaming. And they will control their money.

The bill ends a federal copyright loophole that allowed Internet radio companies like SiriusXM and Pandora to play songs recorded before 1972 without paying royalties to the artists and record companies responsible for those songs. SiriusXM is opposed to this part of the bill and Tuesday night afternoon, the Nashville Songwriters International Association called on Senator Lindsey Graham of South Carolina for delaying the passage of the law .

"For the modern US Senate to unanimously adopt a 185-page bill is a Herculean feat, only achievable because of the determination, determination and mobilization of thousands of music creators across the country, "said Mitch Glazier, president of the America Association. "The result is a bill that pushes us toward a modern music licensing landscape, best based on fair market rates and fair compensation for all."

Finally, the law on the modernization of music creates a new digital fee for producers and engineers. In many cases, these professionals already receive royalties after the broadcast of a song, but the legislation adds the new royalty to the copyright law.

If this became law, the Music Modernization Act would not be a panacea for struggling songwriters and publishers. Their paydays will remain pale in comparison to the glory days of the music industry in the '90s, when an album cut on a hit album could yield a sum of money, even if the song did not been a success.

And much remains to be done, for example, the company or group that will manage the day-to-day operations of the new licensing organization. Stakeholders will be keenly interested in this issue as songwriters lose the right to pursue Spotify and Apple Music in exchange for the promise of a simpler licensing system.

The bill is being returned to the House for a procedural vote, where more roadblocks are possible but not anticipated by the major proponents of the law. United States Representative Doug Collins of R-Georgia, who passed the bill to the House, where it was unanimously approved, expressed optimism that the bill would be sent quickly. law in the office of the president.

"Senators Hatch and Alexander have been key players in our work to give music creators, music providers and music lovers a solid path into the 21st century," Collins said. I hope that our chamber will send the law on modernization of music successfully before the next holiday.