WASHINGTON, D.C. – Today, U.S. Senator Angus King (I-Maine) announced his support for the Music Modernization Act, a bipartisan bill which will ensure songwriters are paid fair value for their songs. The Music Modernization Act would set up a new simplified licensing entity to make it easier for digital music companies to obtain a license and play songs. The entity will also ensure songwriters are paid the royalties they are owed. The bill would also change the law to help songwriters be paid a fair market value for their songs.

“Maine’s musicians, songwriters and artists have played an ‘instrumental’ part in our state’s culture and traditions,” said Senator Angus King. “There is nothing like the true Maine sound, which can be heard all summer at weekend festivals and live music events, or year-round through online streaming services. However you listen, there’s no denying the impact of Maine’s musicians on our state, and I’m proud to support our state’s talented artists and songwriters and ensure that they are fairly compensated for their important contributions.”

The Music Modernization Act updates outdated music licensing laws to make it easier for songwriters to be paid when their music is played online by a digital streaming service, or purchased online. According to Standard and Poor’s, there were 86 million paying subscribers to digital streaming services, who streamed music 252 billion times in 2016. Revenues generated from online music account for half of the music industry’s revenues in 2016. As digital music streaming increases, the number of individual song downloads fell 24 percent between 2015 and 2016 and compact disc sales fell below 100 million units sold – which means less royalties paid to songwriters. The Music Modernization Act seeks to remedy this effect and ensure that songwriters will be paid fair-market value for their songs by:

·         Adopting a simple licensing system for digital music services making it easier for companies to obtain a license to play a song and reducing the likelihood of litigation.

·         Directing the Copyright Royalty Board to set compensation according to the fair market value when songs are sold, such as through music downloads, replacing the current below-market standard.

·         Removing a provision of law that narrows the scope of evidence the federal rate court may examine when asked to set songwriter compensation for when their song is played, such as in a restaurant or at a concert. 

The legislation is supported by the Recording Academy, who tweeted their support for Senator King’s cosponsorship today:

The bill is also supported by the National Music Publishers Association (NMPA), the Digital Media Association (DiMA), the American Society for Composers, Authors and Publishers, (ASCAP) the Broadcast Music, Inc. (BMI), the Nashville Songwriters Association International (NSAI) and the Songwriters of North America (SONA). Additional supporters include the Recording Industry Association of America (RIAA), the Recording Academy and the American Federation of Musicians.