In the United States, performing rights in musical compositions (or “musical works” as the Copyright Act refers to them – the words and music of a song) are generally licensed by a “performing rights organization” or a “PRO.”  The U.S., unlike most countries where there is a single organization that collects these royalites, has multiple such organizations.  The recent doubling in the number of PROs triggered the Copyright Office to initiate a Notice of Inquiry last week requesting public comment on issues related to these organizations.  What are the issues that led to this inquiry? 

As set out in the Notice, in the U.S., performance rights in musical compositions have for over 80 years been licensed by three PROs – ASCAP, BMI, and SESAC.  Yet, since 2013, three new PROs have begun (GMR, PRO Music, and AllTrack).  These new PROs are not all equal. GMR has compiled a roster of songwriters who wrote many well-known songs in many different musical genres, and it has aggressively pursued royalties for the music in their repertoire – see, for instance, our articles here and here on their aggressive efforts to compel the radio industry to pay royalties.  PRO Music, while it has sought to receive licenses from various businesses, is a newer organization with music that appears to be concentrated in certain musical genres.  AllTracks is the newest of the PROs and, at this time, their licensing strategy remains to be seen. 

With at least six PROs representing composers of musical works in existence, Congress has received complaints that businesses using music have been confused by demands for royalty payments from these new organizations, accompanied by threats of lawsuits if royalties are not paid.  The Notice of Inquiry does not even note that the landscape is even more complicated, as there are additional PROs claiming rights in the underlying compositions in spoken word recordings – see our article here – and, from time to time, PROs arise that purportedly represent certain foreign-language recordings.  There is, no doubt, confusion among those who publicly perform music and need to be licensed to play that music about who they have to pay, and what these users are getting when they pay their royalties. Continue Reading Copyright Office Commences an Inquiry into the Proliferation of Performing Rights Organizations – Looking at the Complexity of Licensing Musical Works in the United States

Here are some of the regulatory developments of significance to broadcasters from the past week, with links to where you can go to find more information as to how these actions may affect your operations.

  • Payola on broadcast stations suddenly was in the news this past week.  Early in the week, Senator Marsha Blackburn (R-TN)

For years, we have warned about the need to license music in podcasts – and how such licenses need to be obtained directly from copyright holders.  We’ve noted demand notices sent to podcasters causing those podcasters to pull their programs from various distribution platforms (see, for instance, our articles here and here).  We warned that, as podcasts are on-demand performances and are permanently “fixed” with other audio, the public performance rights given by the licenses that broadcasters and some other services obtain from ASCAP, BMI, SESAC, GMR, and even SoundExchange, are insufficient to cover broad uses of music in podcasts (see, for example, our articles here and here).  A Press Release yesterday from NMPA (the National Music Publishers Association that represents publishing companies that generally hold the copyrights in musical works – the musical compositions that provide the word and music in a song) announces that the organization has sent a take-down notice to Spotify asking it to remove from podcasts hosted by Spotify “thousands of unlicensed uses of NMPA members’ works.”  The Press Release indicates that over 2,500 notices have been sent, and that more are on the way.

This action should reinforce our concerns about the use of unlicensed music in podcasts.  But, contrary to the suggestion that the NMPA letter makes that licensing “is not hard to do,” for many podcasters, it is in fact hard.  There is no central organization, like the PROs or SoundExchange, that provides blanket licenses that cover all music uses in podcasts.  A podcaster who wants to use a popular song in a podcast has to find the copyright holder (or, more frequently, the copyright holders) to both the sound recording (the artist who recorded the music or their copyright holder, often the record company) and to the musical work (the composer or composers and lyricists or their publishing companies, which normally hold the copyrights) and get their permission to include the song in the podcast – most often at a price.  This often involves significant research to find the proper rightsholders. Continue Reading NMPA Calls for Takedowns of Spotify Podcasts Using Unlicensed Music – A Reminder to Podcasters of the Perils of Music in Their Productions

Last week, U.S. Senators Marsha Blackburn (R-Tenn.), Alex Padilla (D-Calif.), Thom Tillis (R-N.C.), and Cory Booker (D-N.J.) introduced the American Music Fairness Act (see their Press Release for more details), with a companion bill to follow in the House.  If adopted, this legislation would impose a new music royalty on over-the-air radio stations.  The royalty would be payable to SoundExchange for the public performance of sound recordings.  This means that the money collected would be paid to performing artists and record labels for the use of their recording of a song.  This new royalty would be in addition to the royalties paid by radio stations to composers and publishing companies through ASCAP, BMI, SESAC and GMR, which are paid for the performance of the musical composition – the words and music to a song. This new legislation is virtually identical to that introduced in the last Congress (see our article here), and is another in a string of similar bills introduced in Congress over the last decade.  See, for instance, our articles hereherehere and here on previous attempts to impose such a royalty.

As in the version of the bill introduced in the last Congress, in an attempt to rebut arguments that this royalty would impose an unreasonable financial burden on small broadcasters, the legislation proposes relatively low flat fees on small commercial and noncommercial radio stations, while the rates applicable to all other broadcasters would be determined by the Copyright Royalty Board – the same judges who set internet radio royalties payable to SoundExchange by webcasters, including broadcasters for their internet simulcasts.  Under the bill, the CRB would review rates every 5 years, just as they do for webcasting royalty rates.Continue Reading It’s Back!  American Music Fairness Act Proposing New Music Royalties for Over-the-Air Broadcasting Introduced in the New Congress

Here are some of the regulatory developments from the past week of significance to broadcasters, with links to where you can go to find more information as to how these actions may affect your operations.

  • FCC Chairman Carr sent a letter to NPR and PBS announcing that he has asked the FCC’s Enforcement Bureau to

Mitchell Stabbe, our resident trademark law specialist, today takes his annual look at the legal issues in Super Bowl advertising and promotions (see some of his past articles herehere, and here).  Take it away, Mitch:  

As a life-long fan of the Baltimore Ravens (the life of the Ravens, not my life), my interest in the Super Bowl XVII has waned a bit.  The opposite is true for those who seek to profit from the playing of the game.  Accordingly, following are updated guidelines about engaging in or accepting advertising or promotions that directly or indirectly reference the Super Bowl without a license from the NFL.  But, first, a trivia question.  Who won Super Bowl I.  (Answer at end)

The Super Bowl means big bucks.

There are currently four primary television networks that broadcast and stream NFL games in the United States (CBS/Paramount+, Fox, ABC/ESPN/ESPN+ and NBC/Peacock).  It is estimated that, with the new contract which took effect last year, each will pay the NFL an average of over $2 billion per year for those rights through 2032, including the right to broadcast the Super Bowl on a rotating basis.

The investment seems to pay off for the networks.  Reportedly, it will cost more than $8 Million for some of the 30-second spots during this year’s Super Bowl broadcast, up from last year.  It has also been reported that last year’s game brought in advertising revenue totaling more than the $600 M from the prior year (with as much as an additional $60 million from ads run when last year’s game went into overtime).  These figures do not include income from ads during any pre-game or post-game programming.  (In addition to the sums paid to have their commercials aired, some advertisers spend millions of dollars to produce an ad.)  In addition, the NFL receives hundreds of millions of dollars from licensing the use of the SUPER BOWL trademark and logo.

Given the value of the Super Bowl franchise, it is not surprising that the NFL is extremely aggressive in protecting its golden goose from anything it views as unauthorized efforts to trade off the goodwill associated with the mark or the game.  Accordingly, with the coin toss almost upon us, advertisers should take special care before publishing or engaging in advertising or other promotional activities that refer to the Super Bowl.  Broadcasters and news publishers have greater latitude than other businesses, but still need to be wary of engaging in activities that the NFL may view as trademark or copyright infringement.  (These risks also apply to other named sporting events, for example, making use of the phrases “Final Four” or “March Madness” in connection with the annual NCAA Basketball Tournament.)Continue Reading 2025 Update on Super Bowl Advertising and Promotions

It’s a new year, and as has been our custom at the beginning of each year, we dust off the crystal ball and take a look at what we think may be some of the significant regulatory and legislative issues that broadcasters will be facing in 2025.  This year, there is an extra layer of uncertainty given a new administration, both in the White House and at the FCC.  Already, it appears that a new administration will bring new priorities – some barely on the radar in past years – to the top of the list of the issues that broadcasters will need to be carefully monitoring.

One of those issues has been a possible FCC review of the meaning of the “public interest” standard under which all broadcasters are governed.  As we wrote when President-Elect Trump announced his pick for the new FCC Chair starting on Inauguration Day, Chair-Designate Brendan Carr has indicated that this public interest proceeding will be a high priority.  In his opinion, broadcasters, or perhaps more specifically the news media, have suffered from an erosion of trust, and it has been his expressed opinion that a reexamination of the public interest standard might help to restore public trust.  We noted in our article upon his selection that this is not the first time that there has been a re-examination of that standard.  It has traditionally been difficult to precisely define what the standard means.  In the coming days, we will be writing more about this issue.  But suffice it to say that we are hopeful that any new examination does not lead to more paperwork obligations for broadcasters, as seemingly occurred whenever any broadcast issue was addressed by the current administration.  As we note below, there are several paperwork burdens that we think may disappear in the new administration, so we are not expecting more paper – but we will all need to be carefully watching what develops from any re-examination of the public interest standard.Continue Reading Looking Into the Crystal Ball – What Legal and Policy Issues are Ahead for Broadcasters in 2025?

In a Press Release issued on November 1, the Radio Music License Committee announced the results of its arbitration with SESAC.  Despite the arbitrators’ decision that rates for commercial radio broadcasters are going up modestly, RMLC declared the decision a win.  How can an increase in royalties be a win?  Let’s provide some background on this decision and why the radio industry may breathe a sigh of relief.

First, it is important to set the background for the decision.  As we wrote here, in 2015, RMLC and SESAC settled an antitrust lawsuit brought by RMLC, agreeing that rates for the public performance by commercial radio broadcasters of the catalog of SESAC music would be set by binding arbitration.  Every four years, a proceeding is held to set the royalties to be paid by a broadcaster for music used in its over-the-air programming and on internet streams of that signal. 

The royalty currently paid by commercial radio stations was set by a settlement between RMLC and SESAC before arbitration in 2020 (see our article here).  That agreement, under which music radio stations have been paying .2557% of revenue, expired at the end of 2022.  As RMLC and SESAC could not mutually agree to new royalties, the recent arbitration was held to set royalties for the period from January 1, 2023 through December 31, 2026.  The decision announced on Friday set those royalties at .2824% of revenue.  Why is this increase from .2557% to .2824% considered a win?Continue Reading RMLC Announces Arbitration Decision on SESAC Royalties for Commercial Radio Stations for 2023-2026

Here are some of the regulatory developments of significance to broadcasters from the past week, with links to where you can go to find more information as to how these actions may affect your operations.

  • The FCC’s Media Bureau released a Public Notice announcing the opening of a filing window for construction permits for new

It seems like virtually every panel at every broadcast and media convention, at some point, ends up involving a discussion of Artificial Intelligence. Sessions on AI are filled to capacity, and sessions unrelated to the topic seem to have to mention AI to appear relevant.  Whenever there is a topic that so thoroughly takes over the conversation in the industry, we lawyers tend to consider the legal implications.  We’ve written several times about AI in political ads (see, for instance, our articles here, here and here).  We will, no doubt, write more about that subject (including addressing further action in the FCC’s proceeding on this subject about which we wrote here, on the Federal Election Commission’s pending action on its separate AI proceeding, consideration of which was again postponed at its meeting last week, and on bills pending in Congress to address AI in political advertising). 

We’ve also written about concerns when AI is used to impersonate celebrities and to create music that too closely resembles copyrighted recordings (see, for instance, our articles here and here).  When looking for new creative ways to entertain your audience, a broadcaster may be tempted to use AI’s ability to have a celebrity “say” something on your station by generating their voice with some form of AI.  As we noted in our previous articles, celebrities have protected interests in their identity in many states, and there has been much recent activity, caused by the advent of easily accessible generative AI that can impersonate anyone, to broaden the protections for the voice, image, and other recognizable traits of celebrities.  A federal NO FAKES Act has also been introduced to give individuals more rights in their voice and likeness.  So being too creative with the use of AI can clearly cause concerns.Continue Reading Using Artificial Intelligence in Developing Broadcast Programming – Watch for Legal Issues