Item 8 Supporting Document — original pdf

Backup

Resolution Supporting Consent Decree Reform for Performing Rights Organizations Submitted by: Austin Music Commission To: Austin City Council Date: [Insert Date] WHEREAS, Austin is the Live Music Capital of the World and home to thousands of working musicians, songwriters, and music industry professionals whose livelihoods depend on fair compensation for the public use of their creative works; and WHEREAS, BMI (Broadcast Music, Inc.) and ASCAP (the American Society of Composers, Authors, and Publishers) are governed by federal consent decrees imposed by the U.S. Department of Justice, dating back to the 1940s, which mandate that they offer blanket licenses to any user upon request—even before compensation is negotiated or agreed upon; and WHEREAS, these consent decrees remove the ability of BMI and ASCAP to withhold licenses or say “no” to unfair offers, placing their songwriter members at a significant disadvantage in negotiations with powerful licensees such as streaming platforms, radio networks, and large-scale venues; and WHEREAS, competing performing rights organizations such as SESAC and Global Music Rights (GMR) are not subject to the same regulatory restrictions and are free to selectively license their catalogs, negotiate higher rates, and withhold music when terms are not favorable—creating a regulatory imbalance that undermines equity for songwriters; and WHEREAS, the Music Modernization Act of 2018, while advancing mechanical licensing practices through the Mechanical Licensing Collective (MLC), does not address the performance royalty inequities created by the outdated consent decree structure; and WHEREAS, these outdated decrees hinder innovation, suppress fair market rates, and disproportionately harm independent and mid-level songwriters, many of whom rely on BMI and ASCAP as their primary representation in public performance licensing; and WHEREAS, federal policymakers have previously reviewed these decrees but failed to implement meaningful reform, in part due to political pressure from large trade associations representing bars, hotels, and broadcasters who benefit from below-market licensing rates; and WHEREAS, a modern and competitive music licensing framework is necessary to sustain the creative economy in Austin and ensure that all songwriters are compensated justly for the use of their work; NOW, THEREFORE, BE IT RESOLVED that the Austin Music Commission recommends that the Austin City Council formally support federal consent decree reform, specifically the phasing out or modernization of the consent decrees that govern BMI and ASCAP, in order to restore fair negotiating rights and market parity for American songwriters. BE IT FURTHER RESOLVED that the City of Austin shall communicate this position to its congressional delegation, the U.S. Department of Justice, and the U.S. Copyright Office, affirming the City's support for music creators and equitable licensing policies.