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US Senate passes bill modernizing music licensing and payouts

Artists and creators are one step closer to getting their dues.
Rachel England, @rachel_england
September 19, 2018
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The US Senate has unanimously passed the Music Modernization Act, which aims to bring the way the music business works in line with the digital age. Providing the bill is met with approval from the House, and is subsequently signed by President Donald Trump, the legislation -- renamed the Orrin G Hatch Music Modernization Act in honour of the Republican senior senator responsible for introducing the bill -- will finally be enshrined into law. It's not expected to meet any opposition.

The bill, in three parts, ensures all music rights holders are compensated more fairly for their work. It will create a publicly-accessible database, detailing who owns a song, making it easier for publishers and artists to be paid royalties. Song reproduction charges have also been updated, to reflect market rates, and sound recording royalty rates will also be taken into account when considering performance royalty rates for songwriters and composers.

The bill has been a long time coming, with companies such as online radio SiriusXM and licensing organization SESAC creating issues along the way, but as SoundExchange CEO Michael Huppe said: "The future of the music industry got brighter today. Creators of music moved one step closer to getting paid more fairly. And industry forces that fought to maintain an unfair and harmful status quo were rebuffed."

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