WASHINGTON, March 4, 2015 – U.S. Senators Lamar Alexander (R-Tenn.), Bob Corker (R-Tenn.) and Orrin Hatch (R-Utah), along with U.S. Reps. Marsha Blackburn (R-Tenn.) and Doug Collins (R-Ga.) and others, today introduced legislation that would allow songwriters to receive compensation based on the fair market value of their songs.
The Songwriter Equity Act would amend federal law to allow songwriters to receive market-based compensation and would remove government price controls. Hatch is a songwriter himself and a senior member of the Judiciary Committee that would consider the legislation. Senator Sheldon Whitehouse (D-R.I.) is also a cosponsor in the Senate. Collins serves as the Vice Chair of the House Judiciary Committee’s Subcommittee on Intellectual Property. In addition to Blackburn and Collins, U.S. Reps.Phil Roe (R-Tenn.), Jim Cooper (D-Tenn.), Steve Cohen (D-Tenn.) and Hakeem Jeffries (D-N.Y.) are also cosponsors in the House.
Alexander said: “Italy has its art, Egypt has its pyramids, Napa Valley has its wines and Nashville has its songwriters. Songwriters are the lifeblood of Music City, and their paychecks ought to be based on the fair market value of their songs – so that when they write a hit heard around the world, you can see it in their billfolds. My hope is that in this new Congress, we will pass this legislation to help give our nation’s songwriters the fair pay they have earned.”
Corker said: “Music showcases the incredible talent and vision of Tennesseans – its songwriters, musicians, and small and large businesses – across the country and around the world. Unfortunately, it’s easy for some to forget the countless people who bring to life the music we enjoy each day. We turn the knob, hit the button, click the mouse, and our favorite songs are there. As technology advances, it’s important that we remember where the music begins and modernize the way songwriters are compensated for their work.”
Hatch said: “The music business is among the toughest and most competitive industries, and our songwriters and composers should not have to accept below-market rates for their work. Ensuring that they are able to receive the fair market value for their songs is the right thing to do.”
Blackburn said: “Behind every great song is a great songwriter who deserves to be fairly compensated for their creative works. I am happy to once again join my House and Senate colleagues in this bipartisan effort to ensure fairness for our songwriters.”
Collins said: “In my home state of Georgia alone, there are close to 50,000 songwriters who have dedicated their lives to a talent and a calling that, in my view, God gave them. It is critical to ensure that songwriters – the engines that drive the music industry – are compensated fairly for their work. Copyright laws were never intended to create barriers to creativity that forces songwriters to sell their intellectual property at below-market rates. Congress should write laws that not only promote creation and pay creators, but also remain relevant even in times of rapid technological change. The Songwriter Equity Act is a vital step toward a music licensing system built on free market principles and fair compensation to creators. ”
The legislation would allow songwriters to receive market-based compensation and remove government price controls in two ways:
- First, it would direct the Copyright Royalty Board to set compensation according to the fair market value when songs are sold, such as through music downloads and CD purchases, replacing the current below-market standard.
- Second, it would remove a provision of law that narrows the scope of evidence the federal rate court may examine when asked to set songwriter compensation for when their song is played, such as in a restaurant or at a concert.
Songwriter compensation is dictated by the federal government. The rate of compensation that is set by the Copyright Royalty Board has increased only 7 cents over 100 years, and is currently 9.1 cents per song. The so-called “federal rate court” determines compensation rates for public performances, occasionally requiring songwriters to engage in complex litigation to be paid reasonable fees for their work.