Senate Passes Music Modernization Act
• After a long and at times, extremely windy journey, the Senate on Tuesday finally passed the Music Modernization Act today by unanimous consent. The legislation has been rebranded as the “Orrin G. Hatch Music Modernization Act” in honor of Utah Senator Orrin Hatch (R-Utah), who originally sponsored the bill and is scheduled to retire later this year.
As reported by Variety, the legislation would accomplish the following: 1) For Songwriters: Create a new and transparent collection entity to ensure that songwriters always get paid for mechanical licenses when digital services use their work while helping ASCAP and BMI secure fairer rates for their songwriters. Establish fair compensation for songwriters when the government sets rates. 2) For Artists: Closes the “pre-1972 loophole” so that digital services will pay legacy artists the compensation they deserve and establish fair compensation for artists when the government sets rates. 3) For Studio Pros: Gives copyright protection to producers and engineers for the first time in history.
The House version of the bill passed unanimously in April and the nearly identical Senate bill was introduced in May, but met opposition (or at least complications) from SESAC and SiriusXM — dozens of artists and executives, including Paul McCartney,Don Henleyand Katy Perry, on Monday issued a letter criticizing SiriusXM’s objections to portions of the bill.
• Following the Senate’s action, Neil Portnow (left), President/CEO of the Recording Academy said, “The passage of the Music Modernization Act by the Senate is a historic moment for the tens of thousands of music creators across the nation. Since first proposing the music industry unite around a common bill in 2014, our members have lobbied in Washington and all 50 states to achieve this vision. When creators raise their voices for fairness, they make great progress.”
NAB President & CEO Gordon Smith (right) was equally enthusiastic, commenting, in part, “NAB applauds Senate passage of the Orrin G. Hatch Music Modernization Act.” He added, “We are particularly supportive of a provision added to the Senate bill ensuring enhanced congressional review of any DOJ changes to ASCAP and BMI consent decrees. These decrees are essential to a functioning music marketplace, and any action to terminate them will now be preceded by appropriate Congressional oversight to protect the interests of songwriters, licensees, and consumers of music.” The Senate’s revised version of the bill now goes back to the House for approval. Once that happens, the new version of the bill goes to President Trump for his huuuuge signature.
