Fixing Music Royalties Through the American Music Fairness Act

What does the United States have in common with Iran and North Korea? They are among the only countries in the world that do not recognize that artists should receive royalties when terrestrial radio stations broadcast their music. Even China amended its copyright laws in 2020 to establish remuneration rights for broadcasts of sound recordings. But a renewed push in Congress to close this loophole would not only ensure artists are properly compensated for their intellectual property but also level the playing field between AM/FM radio and other technologies like online streaming and satellite radio.

Songs have two main copyrights: the composition, consisting of the lyrics, melody, and harmony; and the sound recording, the specific audio performance. Under U.S. law, radio stations only must pay royalties for the former (to the songwriters), not the latter (the performing artists), when broadcasting music. As a result, the terrestrial radio industry does not compensate recording artists for their sound recordings, even though radio stations rely on sound recordings to attract listeners.

Streaming services like Spotify and Apple Music, as well as satellite radio, already pay royalties for sound recordings. Radio stations have historically argued that they are providing free promotion for artists, and therefore, they shouldn’t have to pay royalties. When radio stations were the primary way that Americans discovered new music, perhaps that argument held some currency. But today, most people do not need the radio to find new music. Instead, radio stations broadcast popular hits, earning millions in advertising dollars and returning none of that revenue to the recording artists.

Recording artists deserve compensation, and the American Music Fairness Act (AMFA) would close this loophole by requiring broadcast radio to pay performance royalties to artists and creators for AM/FM radio plays. The bill is sponsored by Senators Marsha Blackburn (R-TN), Alex Padilla (D-CA), Thomas Tillis (R-NC), Cory Booker (D-NJ), Bill Hagerty (R-TN), and Adam Schiff (D-CA), with the companion legislation in the House introduced by Representative Darrell Issa (R-CA) and cosponsored by 11 bipartisan members. By establishing a performance right for sound recordings broadcast by terrestrial radio, this bill would ensure artists, session musicians, and vocalists receive compensation when AM/FM radio stations play their songs.

This loophole also means American artists forfeit payments for overseas radio plays because these payments are based on reciprocal royalty agreements. As a result, American artists are missing out on tens of millions of dollars in royalties every year.

Critics argue that new royalties would threaten small or community-based stations, but AMFA would charge smaller broadcasters a fixed royalty rate based on their annual revenue, allowing for college and non-commercial stations to continue. Local radio remains an essential resource for emergency response and public safety, which AMFA preserves.

While much of today’s intellectual property debate is tied up in conversations around generative artificial intelligence, existing copyright laws still have many glaring holes that Congress can patch with long-overdue legislation.

AMFA would level the playing field across different technologies, closing a longstanding loophole for AM/FM radio and ensuring recording artists receive compensation for their work. Congress should move forward with this legislation.