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Bipartisan Package Brings New COVID Relief And More

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In the waning days of the 116th Congress, a bipartisan package includes new COVID relief and more
Advocacy
Dec 21, 2020 - 3:19 pm

After months of shifting negotiations and perpetuating stalemates, Congress reached a deal to provide the American public with additional COVID-19 relief. Congressional leadership, comprised of House Speaker Nancy Pelosi (D-Calif.), Majority Leader Mitch McConnell (R-Ky.), Minority Leader Chuck Schumer (D-N.Y.), and House Republican Leader Kevin McCarthy (R-Calif.), announced an agreement on Sunday, December 20 to attach the relief to an end-of-year government spending bill to be voted on Monday, December 21 and signed into law by the president. 

Recording Academy Chair & Interim President/CEO Harvey Mason jr. praised Congressional leadership on the new stimulus package, a welcomed sign for many struggling music creators. "The Recording Academy is pleased that Congress heard the call of thousands of music creators and included protections for the music community in the omnibus bill. In addition to extended and improved unemployment benefits and small business loans for freelance creators, the package includes several bills which the Recording Academy, its members, and the larger music community advocated for. From the Save Our Stages Act, which provides a lifeline to performance venues and promoters, to the CASE Act, which creates an avenue for smaller creators to defend their copyrighted works, Congress has ensured that both music creators and those who act behind the scenes to bring music to life are given the support they need during this difficult time." 

The package includes $900 billion in COVID-19 relief that will fund many critical provisions to assist struggling creators to survive the enduring financial hardship inflicted by the pandemic: 

Pandemic Unemployment Assistance

Under the agreement, Congress will extend the Pandemic Unemployment Assistance (PUA) program to April 2021, ensuring that self-employed music professionals, gig workers, and freelancers can continue to receive unemployment benefits as long as they are out-of-work. For many music makers with mixed income (a combination of W2/1099 wages), Congress has authorized a new $100 per week bonus payment to offset some of the eligibility complications encountered earlier this year. 

In the agreement, Congress also re-imagined the popular Federal Pandemic Unemployment Compensation (FPUC) program and funded it at $300 in additional unemployment benefits per week. The bonus payments will go to all individuals receiving unemployment assistance until mid-March. Finally, the stimulus legislation also includes direct payments of $600 per worker earning less than $75k annually ($150k for a couple).

Small Business Loans

The relief package appropriates $284 billion for both first and second rounds of Paycheck Protection Program (PPP) loans. The program, which proved to be wildly popular under the CARES Act, is intended to tether workers to their places of employment, allowing for a quick recovery once regular business operations can resume at pre-pandemic levels. Updated guidance on the PPP program and application is expected to be unveiled soon.  

Additionally, the Emergency Injury Disaster Loan (EIDL) program will be replenished with $20 billion in new funding, a tool which self-employed workers and small business owners can leverage to pay for expenses. The bill attempts to address the uneven impact of COVID-19 felt by minority-owned businesses and underserved communities by appropriating $3B for Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs).

Venue Relief

Styled after the Save Our Stages (SOS) Act, the legislation includes $15 billion to support live event venues and other cultural institutions, including museums. This new program, to be administered by the Small Business Administration, will help independent venues survive the enduring impact of the pandemic and ensure live music can return to the stage safely in the future. While the guidance for this program has yet to be published, the Recording Academy will continue to communicate with its members on how to best leverage these programs to assist with immediate needs in the music ecosystem. 

End-Of-Year Spending Deal: CASE Act And More

The comprehensive package also have provisions for creators beyond the COVID relief sections.  

As part of the omnibus spending deal to fund the government for Fiscal Year 2021, Congressional leaders agreed to include the Copyright Alternative in Small-Claims Enforcement (CASE) Act. The bipartisan and bicameral legislation, which already passed the House of Representatives and out of the Senate Judiciary Committee, will improve the currently unfair copyright enforcement system by establishing a small claims court for copyright cases through a three-"judge" tribunal within the U.S. Copyright Office. A big win for creators, the CASE Act levels the playing field by driving down the high cost of federal litigation. The bill also increases funding for the National Endowment for the Arts (NEA), and includes a new provision to treat commercial, large-scale illicit streaming as a felony—helping crack down on rampant online copyright infringement operations like stream-ripping websites. 

Before this funding deal was solidified, many crucial programs in the CARES Act were on track to sunset at the conclusion of the calendar year. Aware of the burden this would cause on creators, the Recording Academy launched a campaign to call on Congress to pass additional financial relief for creators and small businesses before the holiday recess. The activation has already resulted in thousands of letters and hundreds of calls being sent to elected officials.

This new compromised solution is a step in the right direction for creators, but Congress' work on COVID-19 is not done. Once the legislative body returns in January to start the 117th Congress, focus must be shifted to establishing long-term solutions to ensure a full recovery once the lockdowns are lifted. These long-term solutions include the passage of the RESTART and HITS Acts, implementation of critical DMCA reform, and establishment of a performance right for sound recordings broadcast by terrestrial (AM/FM) radio.

Take Action: Urge Congress To Pass COVID Relief For Music

Statue of Brazilian musician and composer Antonio Carlos "Tom" Jobim in 2020

Statue of Brazilian musician and composer Antonio Carlos "Tom" Jobim in 2020

 

Photo: Bruna Prado/Getty Images

 
News

A Year In Review: Helping The Music Ecosystem Survive The Pandemic

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From securing COVID relief for struggling music creators to getting out the vote with #MusicVotes, let's take a moment to reflect on a year of advocacy wins
Advocacy
Dec 29, 2020 - 10:55 am

This unprecedented year has been extremely painful for the music ecosystem, but it is not without hope. Before we look forward to the return of live music, sold-out tours, and in-studio recording sessions poised to take place in 2021, let's take a moment to reflect on the highlights of what the advocacy of Recording Academy members and music lovers helped to accomplish this past year:

January: 
Bringing Music Makers And Policymakers Together At The GRAMMYs
Leading artists, songwriters and producers met with members of Congress as part of GRAMMY Week. The discussion gave legislators firsthand knowledge about the challenges facing music creators.

February:
Academy Fights For NEA Funding
The Academy quickly jumped to action after the President released his annual budget in February that zeroed out funding for the National Endowment for the Arts (NEA), calling the proposal a "non-starter" and submitting testimony to Congressional appropriators in support of an increase in funding, which Congress ultimately approved. 

March:
Passage Of The CARES Act Includes Historic Help For Music Creators
Academy members advocated Congress to include pro-music provisions in a COVID-19 relief package, and as a result, the CARES Act provided unemployment assistance for the first time to self-employed gig workers, made self-employed workers eligible for the new Paycheck Protection Program, and provided $75M in supplemental funds for the National Endowment for the Arts (NEA).

April:
Academy Establishes CARES Act Helpline
To help Academy members access the benefits available under the CARES Act, the Recording Academy established the CARES Act Hotline to answer questions and conducted an informational webinar. 

May:
Harvey Mason, jr. Testifies Before Senate: Creators Must Be Paid Fairly
The Recording Academy's Chair & Interim President/CEO was a witness before the Senate Subcommittee on Intellectual Property. As part of a series of hearings examining the Digital Millennium Copyright Act (DMCA), Mason advocated for a performance right for sound recordings on AM/FM radio. 

June:
United States-Mexico-Canada Agreement (USMCA) Includes National Treatment Provisions
Academy members asked Congress to protect creators in the USMCA during GRAMMYs on the Hill 2019, and the new USMCA trade agreement officially established a "national treatment" with Canada and Mexico that enables U.S. performers to receive radio performance royalties for airplay in those countries.

July:
Yolanda Adams Testifies In The Senate: Fair Use Must Be Fair To Creators
Four-time GRAMMY winning singer/songwriter and Recording Academy Trustee Yolanda Adams represented the Academy at a formal DMCA hearing before the Senate's Intellectual Property Subcommittee.

House Introduces HITS Act
With support from the Academy and its members, Reps. Linda Sánchez (D-Calif.) and Ron Estes (R-Kan.) introduced the bipartisan Help Independent Tracks Succeed (HITS) Act, allowing independent artists to expense the cost of new studio recordings within the same year of production. 

August:
Summer Of Advocacy Concludes With District Advocate Day
Culminating with the first all-virtual District Advocate Day, thousands of Academy members met with hundreds of Congressional offices to stress the importance of pro-music relief. 

September:
#MusicVotes Helps Get Out The Vote
Alongside our partners at HeadCount, the Recording Academy's #MusicVotes campaign made it simple, easy, and fast for music creators to vote, apply for an absentee ballot, and find their polling place.

October:
Recording Academy Supports MLC Implementation
Established by the MMA, the Mechanical Licensing Collective (MLC) will collect mechanical royalties from digital streaming services. To help songwriters understand the new MLC, the Academy hosted a webinar with MLC CEO Kris Ahrend and songwriter Tayla Parx. 

November:
HITS Act Introduced In The Senate
After Academy members lobbied for the HITS Act during District Advocate day and throughout the fall, Senators Dianne Feinstein (D-Calif.) and Marsha Blackburn (R-Tenn.) introduced a companion bill in the Senate, demonstrating its growing support.

December:
Academy Advocacy Helps Ensure Additional COVID-19 Relief For Creators
After more than nine months of advocacy by thousands of RA members, Congress passes a second comprehensive COVID relief bill, extending and enhancing benefits to freelance music creators.  The omnibus bill also contained key copyright improvements including the CASE Act (small claims copyright court).

Without the tireless advocacy of Recording Academy members, none of these accomplishments would have been possible, but we know we still have much more work ahead of us in the New Year to ensure that the music ecosystem sees a full recovery. Here's to a safe and wonderful holiday season!

Recording Academy And Music Community Coalitions Continue Advocacy For COVID-19 Relief

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Sunshine On A Grain-y Day: 5 Things Creators Can Be Thankful For During This Difficult Thanksgiving

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As we approach Thanksgiving, here are five things music makers can be thankful for during this difficult year
Advocacy
Nov 23, 2020 - 4:51 pm

During this holiday season, music creators are not looking for a gift, they are in need of an economic lifeline. The COVID-19 pandemic impacted the music community swiftly and has continued to limit creators’ access to traditional sources of revenue.

While this is a holiday season unlike every before, there is much to be grateful for but also much work left to do. With support from our members, the Recording Academy continues to lobby Congress for the inclusion of essential financial relief and key creative protections in any end of year COVID relief package. Here are five things music makers can be thankful for during this difficult year:

1. COVID-19 Relief: Tur-Key To Helping Music Creators Survive

When the pandemic started, Congress acted quickly to provide necessary aid to the entire music ecosystem. The $2 trillion CARES Act relief package contained a number of key provisions to help music makers survive the initial impact of the pandemic, including a new pandemic unemployment assistance program for eligible self-employed workers, new small business loan programs, and a $75 million supplemental fund for the National Endowment for the Arts (NEA), among others.

But these programs were only temporary—many have expired, or will expire by the end of the end of the year-- leaving millions of creators with growing financial strain and without essential lifelines. From saving our stages to fixing our unemployment system for gig workers, Congress must pass another relief package to aid creators and to help ensure that music plays on after the lockdowns are lifted.

2. Mechanical Licensing Collective: Helping You Collect A Helping Of Royalties

Part of the Music Modernization Act (MMA), the Mechanical Licensing Collective (MLC) was established as the new entity tasked with administering blanket mechanical licenses, collecting mechanical royalties from digital streaming services, and distributing those collected royalties to the right songwriters, publishers, composers, and lyricists.

The MLC will officially start collecting royalties on January 1, 2021, and distributing those royalties to songwriters and publishers in the months following. For more information on how the MLC works for creators, watch the Academy’s webinar with Kris Ahrend, CEO of the MLC.

3. HITS Act: Incentivizing Music Makers To Corn-tinue Creating Records

The Help Independent Tracks Succeed (HITS) Act will jumpstart the creation of great new music by incentivizing creators to safely re-enter the studio. Designed with independent music makers in mind, the bipartisan HITS Act would allow artists and producers to deduct 100% of their production expenses in the year such expenses are incurred, a departure from the current policy requiring production expenses to be amortized over the economic life of a sound recording.

The HITS Act was introduced in the House of Representatives by Reps. Linda Sanchez (D-Calif.) and Ron Estes (R-Kan.) on July 30, 2020. Let’s hope the HITS Act will be passed into law in order to help support independent records during the pandemic.

4. DMCA Reform: Combatting Online Pie-racy

The Digital Millennium Copyright Act (DMCA) was created to increase innovation and combat bad actors online. Since the bill’s passage in 1998, the internet has significantly evolved and the DMCA needs to be updated to reflect the current internet landscape. This year, Recording Academy Chair and Interim President/CEO Harvey Mason jr. and Yolanda Adams, a four-time GRAMMY winning singer/songwriter and co-chair of the Academy’s National Advocacy Committee, testified in support of DMCA reform before the Senate Judiciary Committee’s Subcommittee on Intellectual Property. Subcommittee Chairman Tillis (N.C.) has spent the past year listening to stakeholder groups and plans to issue draft legislative changes next month.

5. Recording Academy Members: Nothing Is Feast-ible Without You!

Throughout this difficult year, the Academy has continued to call on you, our members, to voice support for creator-friendly legislation, resulting in thousands of letters sent to Congress and hundreds of meetings with Congressional offices. Congress has been receptive to the needs of a struggling music ecosystem and our community will continue to push policymakers to stand firmly with music makers until we recover from the impact of the pandemic.

As you gather around the Thanksgiving table with your household, or share a virtual meal with family and friends from a far, send thanks to Congress for the aid they’ve given and urge them to give more assistance and protections to the music community in need.

Lastly, learn more about the issues impacting the creative community on the Academy’s Issues & Policy page and take action on the Act page.

Recording Academy And Music Community Coalitions Continue Advocacy For COVID-19 Relief

Sen. Thom Tillis

Sen. Thom Tillis

 

Photo: Anna Moneymaker-Pool/Getty Images

 
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Senate Subcommittee Introduces Draft Bill To Reform DMCA

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After a year of hearings, Chairman Tillis (R-N.C.) has introduced the discussion draft of a bill to reform the DMCA, a welcomed sign for music creators
Advocacy
Dec 22, 2020 - 3:20 pm

The Senate Judiciary Committee's Subcommittee on Intellectual Property spent the past year analyzing how the Digital Millennium Copyright Act (DMCA) fits into the modern internet ecosystem. Facilitated by Subcommittee Chairman Thom Tillis (R-N.C.) and Subcommittee Ranking Member Chris Coons (D-Del.), the subcommittee hosted numerous hearings and convened regular stakeholder discussions to learn how to best reform the aging legislation to better empower and equip creators to protect their work online.

On December 22, 2020, Chairman Tillis released the first discussion draft of the Digital Copyright Act (DCA) of 2021, intended to reform the DMCA. "The Digital Millennium Copyright Act was passed in 1998, and while it was revolutionary at the time, the law simply hasn't kept pace with changes in technology. The DMCA is now antiquated and is past-due for modernization," defended Chairman Tillis. "This discussion draft is the result of a year-long series of hearings and months of feedback from creators, user groups, and technology companies. This is just the first step in a long and lengthy process, and I look forward to receiving feedback from stakeholders and releasing a second discussion draft in April."

The discussion draft embodies many of the key concerns presented by the Academy, including ways that better empower individual creators and independent music makers such as replacing the "notice and takedown" system that has long disadvantaged individual creators fighting against rampant and persistent infringement. The Recording Academy has long championed reforms to the DMCA over the years, and was an active participant in the multiyear Copyright Office study on Section 512 of the DMCA, which recommended many of the changes outlined by Chairman Tillis. 

Recording Academy Chair & Interim President/CEO Harvey Mason jr. praised the discussion draft. "The Recording Academy would like to thank Senator Tillis for his leadership in advancing DMCA reform. The Academy is particularly gratified that this initial discussion draft of legislation incorporates reforms that the Academy has advocated for since 2014, including a 'notice-and-staydown' requirement and other provisions that help independent music creators. We look forward to working with Senator Tillis and other members of the Senate and House Judiciary Committees in 2021 to accomplish meaningful reform of the DMCA." 

Actively representing music creators throughout this lengthy process, Mason jr. and four-time GRAMMY winning singer/songwriter and Recording Academy Trustee Yolanda Adams testified before the subcommittee in support of pro-creator reforms earlier this year. The Recording Academy will continue to ensure that music makers always have a voice during these ongoing negotiations and to advocate for the inclusion of these pro-creator provisions in the final bill text.

The Digital Millennium Copyright Act Revisited: Keeping Music Policy Modern

Capitol Hill

Capitol Hill

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Senate Subcommittee Holds Hearing On The Live Event Industry

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On Tuesday, the Senate held a hearing to examine the impact of the COVID-19 pandemic on the live event industry
Advocacy
Dec 16, 2020 - 12:40 pm

With the end of the legislative session quickly approaching, Congress continues to confront the ongoing financial and personal toll caused by the COVID-19 pandemic, giving creators hope that their needs will finally be addressed. 

On Tuesday, December 15, the Senate Committee on Commerce, Science, and Transportation's Subcommittee on Manufacturing, Trade, and Consumer Protection conducted an oversight hearing regarding the precarious state of the live event industry due to the ongoing COVID-19 pandemic. Titled "Examining the Impact of COVID-19 on the Live Event Entertainment Industry," the hearing featured five witnesses from the music community, including Mr. David Fay (President/CEO, The Bushnell Center for the Performing Arts), Mr. Adam Hartke (Owner, Cotillion and WAVE), Mr. Ron Laffitte (President, Patriot Management), Mr. Pete Pantuso (President/CEO, American Bus Association), and Mr. Michael Strickland (Owner, Bandit Lites).

Subcommittee Chairman Jerry Moran (R-Kan.) started the hearing by discussing how the airborne transmission of COVID-19 has rendered the live event industry inoperable and noted the number of industries financially impacted by the lack of regularly held live event performances, including neighboring restaurants and motorcoach companies, among others. The Chairman outlined various legislative proposals before the committee which would offer "struggling businesses a lifeline to continue operations until they can return to doing what they love – entertaining Americans."

After thanking the witnesses for their participation, Subcommittee Ranking Member Richard Blumenthal (D-Conn.) discussed how venues operating at limited capacity or on a completely virtual basis are not profitable and addressed his unhappiness with the grim outlook of the live event sector. The Ranking Member stated that, "Our cultural institutions are really the lifeblood of our democracy…they are examples of our cultural heritage and treasure, and we ignore their needs at our grave peril." 

As a lead sponsor of the Save Our Stages Act, Senator Klobuchar (D-Minn.) highlighted the growing need to pass relief for independent venues. Venues are, "the heart of our communities, the place that people go…we don't want to be the Congress that lets the music die and we don't want this to be the year that we let our cultural icons die," argued Sen. Klobuchar. In response to Sen. Klobuchar's statements, Mr. Hartke, owner of multiple venues, argued that these historic venues are not easily replaced since it took generations to build relationships with both the surrounding community and the touring companies. 

Senator Blackburn (R-Tenn.) stressed the immediate impact felt by the live entertainment industry due to the start of the COVID-19 pandemic in both Tennessee and across the nation. "When the pandemic hit, the economy got shut down, [the live event industry] went from running wide open to a dead stop overnight…It is important to realize they don't have another source [of income]." Along with Senator Dianne Feinstein (D-Calif.), Sen. Blackburn recently introduced the bipartisan HITS Act in the Senate, to help independent creators get back in the recording studio to create new music.

And, Senator Todd Young (R-Ind.) acknowledged the overwhelming impact the COVID-19 pandemic has had on the live entertainment industry. "Every person, business, and industry has been impacted by this pandemic but there is no question the live entertainment industry has been hit especially hard." Senator Todd Young (R-Ind.) offered the RESTART Act, a bill he introduced along with Senator Michael Bennet (D-Colo.) that would provide a lifeline to small- and medium-sized businesses throughout the music ecosystem. 

The Recording Academy continues to call on Congress to pass additional relief that will bring aid to music makers and small businesses before the end of the year. Failure to act will leave millions of workers and small businesses, including countless in the live event industry, without the aid they desperately need. 

Take Action: Urge Congress to Pass COVID Relief for Music