H.R. 5447, Music Modernization Act

Floor Situation

On Wednesday, April 25, 2018, the House will consider H.R. 5447, the Music Modernization Act, under suspension of the rules. The bill was introduced on April 10, 2018, by Rep. Bob Goodlatte (R-VA), and was referred to the House Committee on the Judiciary, which ordered the bill reported by a vote of 32-0 on April 11, 2018.

Summary

H.R. 5447 is designed to significantly update several key provisions of U.S. copyright law regarding music licensing.

Key Provisions of the Music Modernization Act include:[1]

Title I – Music Modernization Act

• Reflects how modern digital music services operate by creating a blanket licensing system to quickly license and pay for musical work copyrights
• Discourages music litigation that generates legal settlements in favor of simply ensuring that artists and copyright owners are paid in the first place without such litigation
• Ends the flawed U.S. Copyright Office bulk notice of intent system that allows royalties to not be paid
• Implements uniform rate setting standards to be used by the Copyright Royalty Board for all music services
• Shifts the costs of the new licensing collective created by the bill to those who benefit from the collective - the licensees
• Updates how certain rate court cases are assigned in the Southern District of New York

Title II -- Compensating Legacy Artists for their Songs, Service, and Important Contributions to Society (CLASSICS) Act 

• Provides a public performance right for pre-1972 recordings

Title III -- Allocation for Music Producers (AMP) Act 

• Ensures that record producers, sound engineers, and other creative professionals receive compensation for their work

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  Background

The Copyright Clause of the U.S. Constitution authorizes Congress to "promote the Progress of Science … by securing for limited Times to Authors … the exclusive Right to their respective Writings.... " Copyright is a federal grant of legal protection available to the creator or owner of certain forms of creative expression (referred to as "works" in copyright parlance), including books, movies, photography, art, and music. A copyright holder possesses several exclusive legal entitlements under the Copyright Act, which provide the holder with the right to determine whether and under what circumstances the protected work may be used by third parties. The grant of copyright permits the copyright holder to exercise several exclusive rights, including the right to reproduce the copyrighted work, distribute copies of the work, publicly perform the work, and publicly display the work.[2]

Much of the current licensing system was established in an analog song-by-song era using compulsory licenses first established in 1909. In addition, artists who recorded works prior to 1972 do not receive any royalties under federal law, and current statute does not ensure that non-recording artists such as producers, sound engineers, and mixers receive revenue from webcasts of their work. The Music Modernization Act (MMA) is designed to update several key provisions of U.S. copyright law regarding music licensing.    

According to the bill’s sponsor, “Today’s Committee passage of the bipartisan Music Modernization Act is the culmination of the House Judiciary Committee’s comprehensive multi-year review of our nation’s copyright laws, as well as years of effort by interested stakeholders and many members of our Committee. This legislation, which is the first major update to our music licensing laws in decades, brings early 20th century music laws for the analog era into the 21st Century digital era.”[3]

Cost

A Congressional Budget Office (CBO) estimate is not currently available.

Staff Contact

For questions or further information please contact Ryan Hofmann with the House Republican Policy Committee by email or at 2-6674.