Songwriters Sound Off as Cruz, Cornyn Try to Amend Music Copyright Bill
Sens. Ted Cruz and John Cornyn, Republicans from Texas, told us they’re working to amend music copyright legislation after concerns raised by Blackstone Group (see 1807240054). Two prominent songwriter groups accused the private equity firm and its music licensing entities of a greedy political play that could sink rare consensus music copyright change.
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“I raised the concerns at the hearing. We continue to work on those concerns,” Cruz told us, saying he “certainly hopes” there’s time to adjust the Music Licensing Collective portion of the Music Modernization Act (MMA) (S-2823) (see 1806280062). The MLC would establish a royalty payment database governed by a board of publishers and songwriters with oversight from the Copyright Office. Cruz and Cornyn spoke against government intervention.
Blackstone, which owns the performing rights organization SESAC and its mechanical rights arm the Harry Fox Agency, proposed a provision requiring streaming companies to hire a company like Harry Fox to issue licenses and to collect and distribute money, said Nashville Songwriters Association International (NSAI) and Songwriters of North America. The songwriter groups asked Blackstone and SESAC to withdraw the proposal.
NSAI Executive Director Bart Herbison told us the streaming services and songwriters are unwilling to shoulder the added cost, meaning the MMA compromise would disintegrate if amended as proposed. The Digital Media Association, which negotiated on behalf of digital streaming services throughout the legislative process, declined to comment. The MMA unanimously passed the House in April and the Senate Judiciary Committee in June.
“There are many good elements of the bill, and I think we need to keep working to finish the job,” Cruz said. When asked what he would do if the bill isn't amended, Cruz said, “I think we’ll keep working on it.”
“We said we wanted to have a conversation about this monopoly that is being created under the proposal, but we’re open to working it out and coming to an agreement that would allow the bill to pass,” Cornyn told us. When asked about warnings the amendment could derail the legislation, Cornyn said twice: “I don’t believe that."
Sen. Thom Tillis, R-N.C., told us he recognized concerns Cruz and Cornyn aired before the committee, but he doesn’t think those will “substantially” change the bill. “I think there was some willingness to talk about it, and that would be between” bill sponsor Sen. Orrin Hatch, R-Utah, and co-sponsor Sen. Lamar Alexander, R-Tenn. Asked about interest from Cruz and Cornyn in altering the bill, Judiciary Chairman Chuck Grassley, R-Iowa, told us Thursday he hadn’t discussed the MMA with anyone for at least a week.
Blackstone “strongly supports music modernization,” and is confident legislation will pass this year “as long as all parties continue working in the same cooperative spirit that has characterized the process,” said a spokesperson. NSAI's Herbison blamed Blackstone for waiting until “11:59:59” to introduce its proposal. He thinks "their motive is to kill this legislation in a greed play for their little company.”
SESAC is committed to working toward legislation “that retains all of the benefits for writers, publishers and [demand-side platforms] and which will move music licensing into the 21st century while supporting a competitive market in music rights administration,” said a spokesperson.
BMI is disappointed “last minute asks” could threaten the bill, the PRO said. “We hope that the parties currently in disagreement can work together to resolve their issues, allowing this important piece of legislation to move forward.”
Herbison said Blackstone’s proposal to add another licensing layer to the framework is unnecessary: “We’ve already got that through the MLC. It’s ridiculous, it’s redundant, and it’s going to add a lot of cost.” He emphasized the songwriter groups aren't pointing fingers at Senate offices Blackstone “targeted,” and they’re in discussions with Cruz and Cornyn. It’s one thing if the senators have philosophical objections to the framework, said Herbison, but “the finger’s pointed at Blackstone, SESAC, Harry Fox.”
NAB members “oppose changes that threaten the bill’s passage," said a spokesperson. He said they "encourage any party seeking further amendments to find a compromise that fulfills the bill’s promise of benefiting" all stakeholders.