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<b>Commentary: </b>Proposed Digital-Music Licensing Legislation Presents Problems for Songwriters, Publishers

By Wallace Collins
July 27, 2006

The Section 115 Reform Act of 2006 (SIRA), H.R. 5553, proposes an entirely new structure for the way digital rights will be licensed and online royalties will be collected. The proposed federal legislation to revise Sec. 115 of the Copyright Act may in fact turn out to be the landmark Internet blanket-licensing legislation some claim that it will be. Major record labels, large on-demand streaming services such as AOL Music, Napster and MusicNet, and cellphone companies such as Verizon, believe that the centralized clearance system that SIRA would create streamlines their business model.

However, those who represent songwriters as well as large independent publishers and copyright administrators should be concerned that the bill currently pending in the House of Representatives is flawed in several significant ways, and requires substantial amendment in order to better protect the interests of music creators and rights owners.

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