PROMOTE Act of 2017

To amend title 17, United States Code, to grant owners of copyright in sound recordings the exclusive right to prohibit the broadcast transmission of the sound recordings by means of terrestrial radio stations, and for other purposes. 1. Short title This Act may be cited as the Performance Royalty Owners of Music Opportunity To Earn Act of 2017 PROMOTE Act of 2017 2. Exclusive right of an owner of copyright to prohibit the broadcast transmission of a copyrighted sound recording by a terrestrial radio station (a) In general Section 106 of title 17, United States Code, is amended— (1) in paragraph (5), by striking ; and (2) in paragraph (6), by striking the period and inserting ; and (3) by adding at the end the following new paragraph: (7) to prohibit performance of a sound recording publicly by means of a broadcast transmission (as that term is defined in section 114(k)) by a terrestrial radio station. . (b) Limitation on exclusive right To prohibit the broadcast transmission of a sound recording by means of a terrestrial radio station Section 114 of title 17, United States Code, is amended— (1) in subsection (a), by striking (3) and (6) (3), (6), and (7) (2) by redesignating subsection (j) as subsection (k); and (3) by inserting after subsection (i) the following new subsection: (j) Limitation on exclusive right To prohibit the broadcast transmission of a sound recording by a terrestrial radio station (1) In general An owner of copyright in a sound recording may not exercise the exclusive right under paragraph (7) of section 106 to prohibit the broadcast transmission of the sound recording by a terrestrial radio station with regard to— (A) a terrestrial radio station that pays the applicable royalties under terms described in paragraph (2); (B) a broadcast transmission of a sound recording of religious services; (C) a broadcast transmission by an educational terrestrial radio station; (D) a broadcast transmission by a terrestrial radio station conforming to rules established for low-power FM radio stations in subpart G of part 73 of title 47, Code of Federal Regulations; or (E) an incidental use. (2) Royalties and terms (A) In general Subject to subparagraph (B), the royalties and terms described in this paragraph shall be identical to those regarding a license for eligible nonsubscription transmission services for audio transmissions under subsection (f)(2). (B) Royalty distributions To the extent that any compensation is provided to an owner of copyright in a sound recording for the broadcast transmission by a terrestrial radio station of the sound recording, 50 percent of such compensation shall be paid to the agent designated to distribute receipts under subsection (f). The agent shall distribute such payments in accordance with subparagraphs (B) through (D) of subsection (g)(2), and such payments shall be the only payments to which featured and nonfeatured artists are entitled by virtue of such compensation for such broadcast transmission. .

Summary: Performance Royalty Owners of Music Opportunity To Earn Act of 2017 or the PROMOTE Act of 2017 This bill amends federal copyright law to provide copyright owners the exclusive right to prohibit performance of a sound recording publicly by a broadcast transmission of a terrestrial AM/FM radio station. Exceptions are provided that allow terrestrial AM/FM radio broadcasts of a sound recording without the copyright owner's permission if: (1) a terrestrial AM/FM radio station pays royalties identical to those paid under the statutory license rates determined by Copyright Royalty Judges for eligible nonsubscription transmission services that apply to digital Internet radio streaming and webcasts; (2) the broadcast is of a religious service, by an educational terrestrial radio station, or by a low-power FM radio station; or (3) the broadcast is an incidental use. (Under current law, the exclusive right for the public performance of sound recordings extends only to digital audio transmissions, such as Internet and satellite radio broadcasts.)