The new piece of bipartisan legislation, the Fair Play Fair Pay Act, was introduced yesterday (30 March) by Jerry Nadler, Marsha Blackburn, John Conyers, Darrell Issa, Ted Deutch and Tom Rooney.
As it stands, AM and FM radio are exempt from paying royalties to artists for use of their music on the radio.
Internet radio stations must pay royalties under the rate standard “willing buyer, willing seller”.
Music rights campaign group musicFIRST said these changes would cost small, local stations with annual revenues below $1 million around $500 a year.
Public, college and other non-commercial radio stations would only pay $100 a year.
MusicFIRST welcomed the introduction of the legislation, stating it is “an important bill that protects the rights of music creators and benefits the consumers who listen to their songs”.
“This bipartisan legislation, together with recent developments that demonstrate strong support for the performance rights of artists, shows clear momentum for reaching a solution to copyright reform that establishes free market pay for all music creators and technology-neutral rules for music services.”