WASHINGTON DC (March 15, 2024) — The Music. Innovation. Consumers., or “MIC,” Coalition is comprised of nineteen national trade associations representing millions of restaurants, bars, hotels, wineries, local broadcasters, digital music services, retailers, health and fitness establishments, live event venues, and other businesses that license rights for the public performance of music. Businesses large and small rely on a rational, transparent, and functioning music-licensing system so that we can play music for our customers while also ensuring that music rights-holders are paid appropriately for their work.
The MIC coalition recently sent Jack Whitver, Iowa State Senate Majority Leader, and Pam Jochum, Iowa State Senate Democratic Leader, a letter in support of HF 2260 — a bill for an act relating to the practices of Performing Rights Societies, otherwise known as Performing Rights Organizations (PROs,). MIC believes these are common-sense reforms to prevent misleading or disruptive behavior and encourages the Senate to schedule consideration of HF 2260 and send it to Governor Kim Reynolds for signature.HF 2260 would improve the landscape for businesses that license public performance rights for musical works by requiring PROs to adhere to a series of best practices before entering business premises to discuss contractual-licensing terms. While Iowa law currently requires PROs to identify themselves as such and state the purpose of entering a business’ premises, there is no requirement that the PRO’s first attempt to schedule an appointment with the proprietor. This bill requires a PRO to make best efforts to schedule an appointment at the business or another location during normal business hours before the PRO may enter the business premises for the purpose of discussing royalty payments for the public performance of musical works.
The bill also requires the PRO to clearly identify themselves and to describe their purpose for being there and prohibits misleading or threatening verbal or written communication to a proprietor in connection with a contract for the payment of royalties or an attempt to collect royalties. It also prohibits a PRO from implying that it is an agent or representative of a public body, regulatory agency, or law-enforcement agency.The MIC Coalition’s top priority is maintaining a functional music marketplace for the benefit of all stakeholders, from businesses that play music to music creators to consumers. This is not achievable without having an efficient, effective, and transparent music-licensing system in place. The current process of ensuring that businesses are legally able to play music, and that those who own the rights to the music or recordings being played, are properly compensated, is extremely complex and difficult to navigate. Because of this onerous process, business-owners often struggle to figure out how to correctly license music, leaving them vulnerable to lawsuits or financial penalties. They also face disruptive collection practices.
The MIC Coalition is a group of associations whose members provide music in retail establishments, hotels, restaurants, bars, wineries, and taverns throughout the country, as well as over the nation’s airwaves and the Internet. The Coalition is committed to a rational, sustainable, and transparent system that will drive the future of music and ensure that consumers have continued access to music across a variety of platforms, venues, and services.
