,,ii #aahth ,,congress #ast ,session ,s4 #bec ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #b1 #bjbc,mr4 ,padilla 7for himself1 ,mrs4 ,blackburn1 ,mr4 ,tillis1 and ,mrs4 ,feinstein7 introduced the following bill2 which was read twice and referred to the ,committee on the ,judiciary ,a ,,bill ,to amend title #ag1 ,united ,states ,code1 to provide fair treatment of radio stations and artists for the use of sound recordings1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,american ,music ,fairness ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,equitable treatment for terrestrial broadcasts and internet services4,sec4 #c4 ,timing of proceedings under sections #aab7;e7 and #aad7;f74,sec4 #d4 ,special protection for small broadcasters4,sec4 #e4 ,distribution of certain royalties4,sec4 #f4 ,no harmful effects on songwriters4,sec4 #g4 ,value of promotion taken into account4 #b4 ,equitable treatment for terrestrial broadcasts and internet services 7a7 ,performance right applicable to audio transmissions generally ,paragraph 7#f7 of section #ajf of title #ag1 ,united ,states ,code1 is amended to read as follows3 7#f7 in the case of sound recordings1 to perform the copyrighted work publicly by means of an audio transmission4 4 7b7 ,inclusion of terrestrial broadcasts in existing performance right and statutory license ,section #aad7;d77#a7 of title #ag1 ,united ,states ,code1 is amended-- 7#a7 in the matter preceding subparagraph 7,a71 by striking a digital and inserting an2 7#b7 by striking subparagraph 7,a72 7#c7 by redesignating subparagraphs 7,b7 and 7,c7 as subparagraphs 7,a7 and 7,b71 respectively2 and 7#d7 in subparagraph 7,a71 as redesignated by paragraph 7#c71 by striking nonsubscription and inserting licensed nonsubscription4 7c7 ,technical and conforming amendments 7#a7 ,definition ,section #aja of title #ag1 ,united ,states ,code1 is amended by inserting after the definition of architectural work the following3 ,an #8audio transmission' is a transmission of a sound recording1 whether in a digital1 analog1 or other format4 ,this term does not include the transmission of any audiovisual work4 4 7#b7 ,conforming removal of digital ,title #ag1 ,united ,states ,code1 is amended-- 7,a7 in section #aab7;e77#h71 by striking a digital audio transmission and inserting an audio transmission2 7,b7 in section #aad-- 7i7 in subsection 7d7-- 7,i7 in paragraph 7#b7-- 7aa7 in the matter preceding subparagraph 7,a71 by striking subscription digital and inserting subscription2 and 7bb7 in subparagraph 7,c77viii71 by striking digital signal and inserting signal2 and 7,,ii7 in paragraph 7#d7-- 7aa7 in subparagraph 7,a71 by striking a digital audio transmission and inserting an audio transmission2 and 7bb7 in subparagraph 7,b77i71 by striking a digital audio transmission and inserting an audio transmission2 7ii7 in subsection 7g77#b77;,a71 by striking a digital and inserting an2 and 7iii7 in subsection 7j7-- 7,i7 in paragraph 7#f7-- 7aa7 by striking digital2 and 7bb7 by striking retransmissions of broadcast transmissions and inserting broadcast transmissions and retransmissions of broadcast transmissions2 and 7,,ii7 in paragraph 7#h71 by striking subscription digital and inserting subscription2 and 7,c7 in section #adja-- 7i7 in subsection 7b71 by striking a digital audio and inserting an audio2 and 7ii7 in subsection 7d7-- 7,i7 in paragraph 7#a71 by striking a digital audio and inserting an audio2 7,,ii7 in paragraph 7#b77;,a71 by striking a digital audio and inserting an audio2 and 7,,iii7 in paragraph 7#d77;,a71 by striking a digital audio and inserting an audio4 #c4 ,timing of proceedings under sections #aab7;e7 and #aad7;f7 ,paragraph 7#c7 of section #hjd7;b7 of title #ag1 ,united ,states ,code1 is amended by adding at the end the following new subparagraph3 7,d7 ,a proceeding under this chapter shall be commenced as soon as practicable after the date of the enactment of this subparagraph to determine royalty rates and terms for nonsubscription broadcast transmissions1 to be effective for the period beginning on such date of enactment1 and ending on ,december #ca1 #bjbh4 ,any payment due under section #aad7;f77#a77;,d7 shall not be due until the due date of the first royalty payments for nonsubscription broadcast transmissions that are determined1 after the date of the enactment of this subparagraph1 by the ,copyright ,royalty ,judges4 ,thereafter1 such proceeding shall be repeated in each subsequent fifth calendar year4 4 #d4 ,special protection for small broadcasters 7a7 ,specified royalty fees ,section #aad7;f77#a7 of title #ag1 ,united ,states ,code1 is amended by inserting at the end the following new subparagraph3 7,d7 7i7 ,notwithstanding the provisions of subparagraphs 7,a7 through 7,c71 the royalty rate shall be as follows for nonsubscription broadcast transmissions by each individual terrestrial broadcast station licensed as such by the ,federal ,communications ,commission that satisfies the conditions in clause 7ii7-- 7,i7 #aj per calendar year1 in the case of nonsubscription broadcast transmissions by a broadcast station that generated revenue in the immediately preceding calendar year of less than #ajj1jjj2 7,,ii7 #ajj per calendar year1 in the case of nonsubscription broadcast transmissions by a broadcast station that is a public broadcasting entity as defined in section #aah7;f7 and generated revenue in the immediately preceding calendar year of #ajj1jjj or more1 but less than #a1ejj1jjj2 and 7,,iii7 #ejj per calendar year1 in the case of nonsubscription broadcast transmissions by a broadcast station that is not a public broadcasting entity as defined in section #aah7;f7 and generated revenue in the immediately preceding calendar year of #ajj1jjj or more1 but less than #a1ejj1jjj4 7ii7 ,an individual terrestrial broadcast station licensed as such by the ,federal ,communications ,commission is eligible for a royalty rate set forth in clause 7i7 if-- 7,i7 the revenue from the operation of that individual station was less than #a1ejj1jjj during the immediately preceding calendar year2 7,,ii7 the aggregate revenue of the owner and operator of the broadcast station and any person directly or indirectly controlling1 controlled by1 or under common control with such owner or operator1 from any source1 was less than #aj1jjj1jjj during the immediately preceding calendar year2 and 7,,iii7 the owner or operator of the broadcast station provides to the nonprofit collective designated by the ,copyright ,royalty ,judges to distribute receipts from the licensing of transmissions in accordance with subsection 7f71 by no later than ,january #ca of the relevant calendar year1 a written and signed certification of the station's eligibility under this clause and the applicable subclause of clause 7i71 in accordance with requirements the ,copyright ,royalty ,judges shall prescribe by regulation4 7iii7 ,for purposes of clauses 7i7 and 7ii7-- 7,i7 revenue shall be calculated in accordance with generally accepted accounting principles2 7,,ii7 revenue generated by a terrestrial broadcast station shall include all revenue from the operation of the station1 from any source2 and 7,,iii7 in the case of affiliated broadcast stations1 revenue shall be allocated reasonably to individual stations associated with the revenue4 7iv7 ,the royalty rates specified in clause 7i7 shall not be admissible as evidence or otherwise taken into account in determining royalty rates in a proceeding under chapter #h1 or in any other administrative1 judicial1 or other ,federal ,government proceeding involving the setting or adjustment of the royalties payable for the public performance or reproduction in ephemeral phonorecords or copies of sound recordings1 the determination of terms or conditions related thereto1 or the establishment of notice or recordkeeping requirements4 4 7b7 ,technical correction ,section #aah7;f7 of title #ag1 ,united ,states ,code1 is amended by striking section #cig of title #dg and inserting section #cig of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #cig74 #e4 ,distribution of certain royalties ,section #aad7;g7 of title #ag1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a71 by inserting or in the case of a transmission to which paragraph 7#e7 applies after this section2 7#b7 by redesignating paragraphs 7#e71 7#f71 and 7#g7 as paragraphs 7#f71 7#g71 and 7#h71 respectively2 and 7#c7 by inserting after paragraph 7#d7 the following new paragraph3 7#e7 ,notwithstanding paragraph 7#a71 to the extent that a license granted by the copyright owner of a sound recording to a transmitting entity eligible for a statutory license under subsection 7d77#b7 extends to such entity's transmissions otherwise licensable under a statutory license in accordance with subsection 7f71 such entity shall pay to the collective designated to distribute statutory licensing receipts from the licensing of transmissions in accordance with subsection 7f71 #ej percent of the total royalties that such entity is required1 pursuant to the applicable license agreement1 to pay for such transmissions otherwise licensable under a statutory license in accordance with subsection 7f74 ,that collective shall distribute such payments in proportion to the distributions provided in subparagraphs 7,b7 through 7,d7 of paragraph 7#b71 and such payments shall be the only payments to which featured and nonfeatured artists are entitled by virtue of such transmissions under the direct license with such entity4 4 #f4 ,no harmful effects on songwriters ,nothing in this ,act1 or the amendments made by this ,act1 shall adversely affect in any respect the public performance rights of or royalties payable to songwriters or copyright owners of musical works4 #g4 ,value of promotion taken into account ,pursuant to section #aad7;f77#a77;,b7 of title #ag1 ,united ,states ,code1 in determining rates and terms for terrestrial broadcast radio stations under this ,act1 and the amendments made by this ,act1 the ,copyright ,royalty ,judges shall base their decision on economic1 competitive1 and programming information presented by the parties1 including whether use of the station's service may substitute for or may promote the sales of phonorecords or otherwise may interfere with or may enhance the sound recording copyright owner's other streams of revenue from the copyright owner's sound recordings4