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Fair Play Fair Pay Act Gains Traction in the US

Posted: Jun 22, 2017 at 1:00 am   /   by   /   comments (0)

A notebook and IPod lying on a table The U.S. recording industry has gained more support for the Fair Play Fair Pay Act with the backing of 21 House members from just six representatives since the bill’s introduction on March 30.

The addition of new bipartisan sponsors represented progress for the industry, which seeks royalty payments for artists and labels from radio stations’ airplay of recorded work. However, the bill faces opposition from the National Association of Broadcasters (NAB).

Playing Time

The NAB has successfully defeated any effort to push for radio airplay royalties in the last several years, which could be one reason why the U.S. remains the only first-world country where artists do not get such royalties. An accounting for these payments, however, may soon become a reality.

That is because the proposal’s chances of being dead in the water remain quite slim if the topic of royalty payments from radio airplay become more relevant to reviewing copyrights laws amid the growing use of digital platforms.

Aside from this, more and more companies are dabbling in projects that help recording artists and labels with the collection of revenue from royalties.

Royalty Exemptions

Some radio stations have been able to evade paying royalties based on their argument that they consider the airplay of recorded content to be “promotional.” On the other hand, online streaming networks and television stations pay this kind of royalties.

Still, justifying exclusions for radio stations becomes more difficult due to an overlap in services among different media channels, as well as the ability of consumers to find content from different platforms, according to Daryl Friedman, Recording Academy’s chief officer of the industry.

The Fair Play Fair Pay Act signals a new step towards ensuring every U.S. recording artist receives due payment for their work, as more services become publicly available for consumers. Are you in favor of passing the legislation?