The monumental invoice handed the Senate on Tuesday, because of an 11th hour compromise between the satellite tv for pc radio service and the remainder of the music {industry}.
Tuesday began out with knives drawn and conflict within the air, because the music {industry} was going toe-to-toe with SiriusXM over the Music Modernization Act. The invoice wanted unanimous approval from all senators within the 24-hour hotline course of, which means a single objection might transfer it to debate on the Senate ground — probably killing it altogether at this level within the yr. But as a substitute of a massacre, the day resulted in kisses and hugs as most sides came together to celebrate the bill’s passage, because of an 11th hour compromise.
For the final six months, SiriusXM has been pushing again towards the Music Modernization Act saying it treats the satellite tv for pc radio firm unfairly when in comparison with its competitors. This public relations gambit virtually ended with an artist/songwriter boycott of Liberty Media, which owns a controlling curiosity in SiriusXM. But late Tuesday evening, earlier than the day turned, SiriusXM put out a press launch saying a deal had been struck and the corporate was comfortable the laws had been permitted by the Senate.
“We are happy to hitch with the music group in sponsoring amendments that shield artists on this laws,” Liberty Media President and CEO Greg Maffei mentioned in a press release. “It is essential that the music {industry} transfer ahead in order that artists can showcase their work all through the United States.”
SiriusXM CEO Jim Meyer added, “SiriusXM is a platform that respects and actively helps artists and all music creators, and we’re delighted to have reached this settlement to assist move this invoice.”
On the opposite facet of the desk, RIAA President Mitch Glazier mentioned, “We are happy that SiriusXM and the music group have come to an settlement that ensures the safety of artists, songwriters, publishers, labels, producers, and all music creators who will profit from this long-sought, consensus laws.”
Likewise Full Management co-founder Irving Azoff mentioned in his assertion, “This is a monumental event for artists and songwriters who at the moment are assured — in regulation — that they are going to obtain their deserved royalties. We are proud to be part of this crucial consensus and the continuing struggle for artists’ rights.”
After a weekend of negotiations between all of the laws’s main stakeholders, early this week compromise was within the air. But it was nonetheless unclear whether or not it might be sufficient, with the invoice’s success hinging on whether or not any senators would object to the deliberate fast-track hotline course of. As of Tuesday, 82 senators had signed on as co-sponsors of the invoice, but it surely was unclear precisely what the remaining 18 would do. And when {industry} proponents came upon Tuesday morning SiriusXM had lined up a minimum of two senators to object to the Music Modernization Act, proclamations of conflict and pandemonium broke out.
At that time, MMA proponents tried to search out out which senators could be staging to dam the laws whereas additionally contemplating making a call: attempt to strike a compromise with SiriusXM or name its bluff and see what would occurred. If there was an objection and the laws was pulled from the hotline’s unanimous approval course of, {industry} executives figured they may nonetheless most likely get it handed on the ground. But, with Brett Kavanaugh Supreme Court affirmation turmoil, chances are high it would not get to the ground earlier than the recess. They might most likely nonetheless get a vote in the course of the lame duck session after the November elections, however that additionally introduced dangers: Once the invoice hit the ground, a senator might attempt to connect amendments the {industry} may not need or package deal it with one other unpopular invoice.
By 2 p.m. Tuesday, the MMA’s music {industry} supporters had been conscious Sen. Lindsey Graham (R-S.C.) was sympathetic to SiriusXM’s points and would possibly nonetheless object, whereas Sen. Mike Lee (R-Utah) nonetheless had issues concerning the invoice’s blanket license provision impacting competitors. Given these attainable objections, Senate management inspired the {industry} to try to compromise as soon as extra with SiriusXM. Those negotiations started with Sen. Lamar Alexander (R-Tenn.) going to SiriusXM, opening the doorways for the {industry} to renew negotiations whereas racing towards the hotline’s ticking clock.
At this time, SiriusXM was nonetheless in search of the identical amendments it had been pushing for the previous couple of months, though it had modified its stance considerably. The firm initially needed the 801(b) commonplace restored — a provision the MMA eliminates — which offers price courts use further consideration when setting charges past its commonplace standards for many most different digital gamers. (Rights holders complain these particular issues lead to decrease charges for digital companies established earlier than the 1998 Digital Millennium Copyright Act, resembling SiriusXM.) The firm additionally needed wording included that ensured the royalties it pays for pre-1972 recordings had been divided evenly 50 % to labels and 50 % to artists and musicians, since its earlier cost held again from artists the quantity the labels spent on the pre-1972 litigation. Finally, SiriusXM needed the identical consideration given to terrestrial radio that it would not need to take care of its publishing charges being influenced by the royalty paid to labels. (The MMA eradicated that restraint for all different digital companies, which music publishers and songwriters hope means increased funds for publishing rights.)
The 50-50 break up was a simple compromise for the {industry}, as soon as Azoff and Susan Genco from his firm weighed in with assist from Songwriters of North America (SONA) authorized counsel Dina LaPolt and lawyer Jacqueline Charlesworth . In truth, negotiations for this a part of the compromise had already begun over the weekend with Azoff and Genco getting the labels on board. As a part of the deal, SiriusXM agreed to surrender issues given to pre-existing companies in addition to shedding the prohibition of utilizing royalty charges paid to labels when setting publishing charges — all in alternate for price certainty by 2027. That means, SiriusXM’s current copyright royalty charges of 15.5 % of its income to be paid to labels and artists will maintain for almost one other decade.
Publishers and songwriters did not need to make any concessions to win Sirius endorsement of the laws.
The ultimate deal and all the components got here collectively between four p.m. and 5 p.m., because the laws lastly gained Senate approval and was introduced round 6 p.m.
While some sources insist SiriusXM had beforehand been supplied and turned down a compromise just like what was lastly agreed upon, others inform Billboard that was not the case. But on Tuesday afternoon a key compromise was struck between RIAA, the labels and Sirius that might preserve their royalty charges locked in till 2027 (see here for extra particulars).
With most sides now comfortable concerning the invoice and hoping its momentum carries ahead by House approval after which signing by President Donald Trump, some see a brand new daybreak the place the {industry} would possibly lastly come collectively to resolve issues relatively than the frequent infighting of previous.
“The Senate’s unanimous passage of The Music Modernization Act is a monumental step ahead in getting this crucial piece of laws signed in to regulation,” mentioned BMI president and CEO Mike O’Neill in a press release. “This invoice has been the product of unprecedented collaboration throughout your complete {industry}, and we thank … your complete Senate, for serving to to make sure that songwriters and composers can proceed to earn a dwelling creating the music that’s liked everywhere in the world.”
“After 5 years of collaboration and serving to to carry individuals collectively from all components of the music enterprise, now we have lastly harmonized as an {industry},” SONA’s lawyer LaPolt mentioned in a press release. “This is a historic event for the music {industry}, copyright reform, and marks the start of a brand new period for music creators in consensus with stakeholders industry-wide.”
