New bill to address songwriter royalty payments

When someone buys a recorded song, or a song played on the radio or a band performs the song, the song writer gets paid a royalty. However, the arcane system that tracks information to pay the song writer is more than a decade old and complicated. The royalty from sale of a recorded song has gone up from 2 cents in 1909 to 9.1 cents today. Many thinks it is still low and hard for anyone to make a living on that income.

Here comes the Songwriter Equity Act of 2014 (H.R. 4079). It is aimed at fixing how the government calculates royalty payments to songwriters. Today the Copyright Royalty Board sets the rates. The new bill proposes to set the rates based on “fair market value” and the federal rate court to set the rates. It also gives more authority to the court by removing some restrictions. Bill is lacking some details such as the definition of fair market value. However, trade groups such as ASCAP and BMI are supporting the bill. The National Association of Broadcasters which represents royalty payers is opposing the bill. The bill has been introduced in the House and the Senate and is waiting for approval.