AM Radio Mandate is Moving in Congress — But Should It Pair with Performance Royalty Requirements?

Photo Credit: why kei

A coalition of automakers and tech companies sends a letter to Congress urging them to pair the AM radio mandate with royalties for musicians.

A broad array of leading automakers and technology companies have sent a letter to the Chairs and Ranking Members of the Senate and House Judiciary Committees, asking them to advance the American Music Fairness Act (AMFA). The legislation will require big radio companies that made $13.6 billion in advertising revenue last year to pay the artists whose music they currently play for free.

The letter was signed by the Alliance for Automotive Innovation, the Consumer Technology Association (CTA), the Zero Emissions Transportation Association (ZETA), and the musicFIRST Coalition.

“Mandating AM radio without addressing the performance royalty issues would perpetuate an inequity that denies hundreds of millions of dollars in compensation to countless recording artists every year,” the group writes.

“While some of our coalition members have concerns about the AM bill for a variety of reasons, we also believe that Congress should not mandate the use of an infringing platform that exploits artists by not paying them for their work. Our position is simply one of fairness and equity, and one that we think all Americans can agree: if you put in the hard work, you should be compensated.”

Their call to action comes as the House Energy and Commerce Committee prepares to consider the AM Radio for Every Vehicle Act. In their letter, the coalition warned that mandating AM radio in vehicles without first addressing the issue of performance royalties would exacerbate an already unfair system.

“AMFA addresses a longstanding inequity and would ensure that music recording artists are finally paid when their work is played on terrestrial radio. Under current law, terrestrial radio is the only music delivery platform that is not required to pay recording artists for their music,” the letter reads. “Satellite radio and streaming services, including some of our member companies, must compensate artists for their work. The lack of a performance right on terrestrial radio puts some of our member companies at a competitive disadvantage.”

“We urge the Senate and House Judiciary Committees to consider the American Music Fairness Act without delay to ensure this longstanding loophole is finally closed and that music artists are not left behind if Congress moves forward with the AM bill,” the coalition writes. “We stand ready to work with you to achieve this goal.”

View the full article