FMLC Meets with the Small Business Administration on Copyright Reform

Lansing, MI, July 23, 2015 --(PR.com)-- The Fairness in Music Licensing Coalition (FMLC) engaged the US Small Business Administration (SBA) in support of the coalition’s efforts to address the impact of the current system for collecting music licensing fees on the hospitality industry’s small independent businesses, as well as the impact on composers and songwriters.

The coalition’s Washington, D.C. team met with SBA officials and outlined the need for the agency to be active in addressing:

· The expansion of the “Small Business Exemption” in the Copyright Act to make music licensing fees less burdensome on small independent businesses and to ensure that small independent songwriters are fairly compensated. FMLC feels that this exemption should be expanded and simplified.
· The vital need for transparency: The Performance Rights Organizations (PROs) should be more transparent about how much they collect from small businesses and how they distribute the money they collect. In support of the impacted small businesses, FMLC is seeking the establishment of a searchable database to be set up so that music users can quickly and easily figure out which PRO they are paying when they pay music licensing fees.
· A system that protects industry small businesses from arbitrary increases in music licensing fees without a reasonable way to dispute fee increases.

“PROs collect billions of dollars on behalf of music publishers, composers, songwriters and lyricists. Even though they are ‘not-for-profit’ organizations, they do not publicly disclose how they spend their operating revenues,” said FMLC President Rick Swindlehurst. “This is an opaque way to service both music creators and music users which hurts the small businesses on both sides of the equation.”

Currently, nonprofit public charities, foundations, trade associations and even for-profit publicly traded companies disclose how they spend operating revenues. FMLC seeks to legislatively require how PROs collect and distribute revenue on behalf of its constituency.

“The Fairness in Music Licensing Coalition was established to support small independent businesses and organizations that are impacted by music licensing,” said FMLC Director of Outreach Scott Ellis. “In particular, our members are affected by confusing licensing fees and harsh collection practices by Performing Rights Organizations, like ASCAP, BMI and SESAC. Our goals are to simplify, modernize and clarify the Copyright Act.”

FMLC wants to make sure that when music users pay music licensing fees they know what they are paying for and that it goes to the songwriters who deserve proper compensation.

The Fairness in Music Licensing Coalition (FMLC) promotes and advances the interests of small businesses and organizations impacted by the current process for assessing music licensing fees. FMLC is the only advocacy organization exclusively focused on making the music licensing system simpler, fairer and more transparent for small businesses in the hospitality industry. For policy updates and more information on the association and its activities, visit the Fairness in Music Licensing Coalition’s website at www.musicfairness.org