Lawmakers Pushing Radio To Pay Performance Royalties

Rep. Marsha Blackburn

Republican U.S. Rep. Marsha Blackburn introduced legislation Wednesday that would force broadcasters to pay royalties to artists and record labels when their songs are played on terrestial radio, according to The Tennessean.

Currently only writers and publishers receive royalty payments when a song is played on the radio. Artists and labels, meanwhile, receive royalties for virtually every other transmission of their song – from satellite radio to streaming services.

Blackburn said it was time for radio broadcasters to pay performance royalties, too.

“This is a basic issue of modernizing the law to get rid of a dated loophole that only applies to AM/FM radio,” Blackburn said in a release. “Internet radio pays music creators fair market value for their performances, Satellite radio pays music creators for performances, Cable and Satellite TV/radio stations pay music creators for their performances. Everyone but AM/FM radio pays.”

The bipartisan legislation was offered by Blackburn, R-Brentwood, and U.S. Rep. Anna Eshoo. It comes amid an ongoing debate in Congress about retransmission fees that cable companies are required to pay to broadcasters for content.

During a recent committee debate on the matter, Blackburn noted the inconsistency in the broadcasters’ positions on the two issues.

While the broadcasters believe cable companies are profiting from retransmitting their television shows, the same companies, which often own radio stations, have argued against performance royalties for artists and labels.

If the broadcasters want to collect money from cable companies for television content, which the broadcast companies have been advocating for in Congress, then they should pay performance royalties to the artists and labels, Blackburn said.

The legislation was received warmly by the Recording Industry Association of America, the Washington D.C. nonprofit group that represents record labels.

The legislation is being introduced amid an ongoing debate about broader royalty reform, including performance royalties for traditional radio. Other issues being debated in Congress include digital radio royalties for pre-1972 recordings and how songwriters are paid for songs played on digital radio stations.

Read More Now