After years of planning, greater than a yr of hardcore lobbying, and months of ultimate compromises, the Music Modernization Act may go to a hotline vote within the Senate later today. The invoice has overwhelming help: It handed the House of Representatives unanimously in April, it has greater than 70 cosponsors within the Senate, and, after some compromises to get the help of Sen. Ron Wyden (D-Ore.), the one remaining opposition comes from Sirius XM. And the truth that it has been hotlined implies that its Senate cosponsors — and, presumably, music-business lobbyists — consider it will probably move on a voice vote.
The stakes are excessive. A single objection to the invoice, if it will probably’t be addressed, implies that the Senate would then must schedule a proper vote. At that time, Sirius XM would have a robust ally: Time. The Senate solely has a lot time earlier than the election, and it will likely be more durable to move something within the “lame duck” session after that. That may very well be the final likelihood for the invoice — and if it doesn’t move, the music enterprise goes to have a significant mess on its palms.
Many observers appear to consider that if the Music Modernization Act doesn’t move earlier than the top of this yr, legislators and lobbyists will merely attempt once more in 2019. It’s not that straightforward, although. (Also, a phrase to the sensible: I wouldn’t suggest suggesting this to anybody concerned in particular person. It’s quite a bit more durable than it appears from the skin.) First, three of the primary forces behind the laws are retiring. In the House, each Rep. Darrell Issa (R-Calif.) and Rep. Bob Goodlatte (R-Va.) will depart Congress, and the latter, at present Chair of the House Judiciary Committee, oversaw the copyright reform course of that made this attainable within the first place. This may even be the final time period for Sen. Orrin Hatch (R-Utah), a cosponsor of the invoice and a long-time champion of copyright (in addition to a songwriter himself).
Copyright, for the entire debate it sparks, is likely one of the solely bipartisan points in Washington. But that solely helps if legislators can work collectively throughout the aisle. And though nobody is aware of what the brand new Congress will seem like, voters in each events don’t appear particularly fascinated about electing the sort of moderates who’re prepared to dive into sophisticated points with colleagues they disagree with. Compared to investigating President Trump — or blocking Democrats from interfering with the administration, relying on the place you stand — copyright is a reasonably unsexy problem.
The greater downside is that the compromise on the coronary heart of the Music Modernization Act simply gained’t final. The most important a part of the invoice will set up a mechanical royalties gathering society that shall be run by rightsholders and paid for by providers. In change, the invoice will give providers a secure harbor of kinds from copyright infringement lawsuits for statutory damages filed after December 31, 2017. One may argue concerning the justice of this, or the best way the gathering society has been arrange, however this may reform mechanical licensing, give streaming providers the soundness they want, and be certain that the music enterprise can proceed on its present path of progress.
It is also seen as a ticking time bomb.
If the invoice doesn’t move, rightsholders may unleash a torrent of copyright fits in opposition to streaming providers for utilizing their music with out permission. With statutory damages of as much as $150,000 per work infringed, such litigation may endanger the financial stability of the streaming services. That could be unhealthy for the complete music enterprise. But it may additionally doubtlessly depart rightsholders with out the leverage they should attain a compromise on potential laws. Music publishers wouldn’t have the ability to supply secure harbor from the authorized storm providers would face then. That means they wouldn’t have the ability to get a few of the different benefits the invoice gives them, resembling a greater rate-setting normal for copyright royalty board choices, and the power for ASCAP and BMI to get completely different judges in litigation.
Aren’t there different methods to repair the mechanical licensing mess? Sure, nevertheless it’s laborious to think about something taking place with out the help of each providers and publishers. They may come to a different compromise, nevertheless it virtually actually wouldn’t be as advantageous for rightsholders. Just for starters, one other invoice may create a mechanical royalty gathering society that’s managed and paid for by each publishers and providers. The former would imply extra compromises with providers, whereas the second would imply that any such society would maintain again some cash from rights holders to cowl its prices. The info that the present invoice establishes a society thats funded solely by providers has helped win the help of unbiased publishers and songwriters.
Not the entire Music Modernization Act includes publishing — it additionally clearly establishes a digital public efficiency proper for pre-1972 sound recordings, amongst different issues. That a part of the invoice would presumably have the identical help in Congress. But it wouldn’t have as a lot help from the music enterprise, because it solely includes the recording enterprise. And whereas it addresses an essential problem, it lacks the urgency of fixing music streaming that helped make the Music Modernization Act a precedence.
The genius of the Music Modernization Act is that it’s a compromise that has the help of the complete music enterprise. Making that compromise concerned really compromising on some beliefs — and thus nobody is solely pleased with the consequence. But it was achieved in order to keep away from the opposition of a robust, united business. (It’s laborious sufficient to beat the objections of SiriusXM — think about going up in opposition to the mixed would possibly of Spotify, Apple, and Amazon.) That makes it a invoice that may move. Let’s hope it does — quickly.
