No Royalties, No Radio? Music Lobby Tries To Hitch A Ride On AM Mandate Fight.

The number of lawmakers who have gotten onboard bills that would require all vehicles sold in the U.S. to include AM radio has continued to grow, but that is not slowing critics of the idea from the auto industry and beyond. The MusicFirst Coalition has joined with the Alliance for Automotive Innovation and the Consumer Technology Association in an attempt to link the AM radio issue with efforts by the music industry to secure a performance royalty on broadcast airplay.

In letters to the chairmen of the House and Senate Judiciary Committees, they are suggesting that any advancement of the AM Radio for Every Vehicle Act (H.R.979/S. 315) be put on hold without similar approval of the American Music Fairness Act (S. 326/HR 861).

“Mandating AM radio without addressing the performance royalty issue would perpetuate an inequity that denies hundreds of millions of dollars in compensation to countless recording artists every year,” the groups write in their letter. “While some of our coalition members have concerns about the AM bill for a variety of reasons, we also believe that Congress should not mandate the use of an infringing platform that exploits artists by not paying them for their work.”

The effort to tie the two issues is also supported by former Vice President Al Gore, who is now the Executive Director of the Zero Emission Transportation Association, which advocates for the electric vehicle industry. EV manufacturers have led the effort to remove AM from their cars, saying interference makes it unlistenable, although several have said with a shield that costs just a few dollars, they are able to resolve the issue.

The letter comes as the House Energy & Commerce Committee is expected to markup the AM legislation soon. But rather than try to stop a popular proposal from being approved, the joint effort is more designed to push lawmakers to go forward with the performance royalty bill. The letter is directed to the Judiciary Committees, where copyright issues are considered, not the Commerce Committees with jurisdiction over the AM proposal. The text is also entirely focused on the radio royalty issue, not the AM requirement, with talking points that the MusicFirst Coalition has repeated for years on Capitol Hill.

The bill that would require AM/FM stations to pay royalties for their over-the-air music use could potentially benefit from the link to AM. But tying the two bills together appears to be a long shot.

Just a handful of lawmakers — ten in the House and four in the Senate — have come out in favor of the radio royalty legislation. At the same time, the Local Radio Freedom Act (H.Con.Res.12/S.Con.Res.8), which would block a radio performance royalty, has secured the support of 176 House members and 25 Senators to date. Among the recently added backers are Sen. John Boozman (R-AR), and Reps. Ronny Jackson (R-TX), Tim Moore (R-NC) and Joe Wilson (R-NC).

Things are going even better for the AM Radio for Every Vehicle Act, which will, if passed, require the Secretary of Transportation to issue a rule requiring access to AM broadcast stations in motor vehicles. If they don’t, carmakers could be fined. It has already cleared the Senate Commerce Committee, and with the recent addition of co-sponsor Andy Kim (D-NJ), its filibuster-proof list of supporters has increased to 61 Senators. Meanwhile, in the House, the bill has 185 co-sponsors.

While some car brands, such as Ford, Toyota and Chevrolet, have embraced the idea of keeping AM in their vehicles, the auto industry’s efforts to block the mandate aren’t new. The Alliance for Automotive Innovation, a lobby group whose members include vehicle manufacturers, has previously been critical of the AM requirement. It says 99% of cars on the road today still have access to AM signals, and those that don’t can access the programming through internet simulcasts.

The Consumer Technology Association has argued that forcing carmakers to keep AM would “stifle” innovation, impose unnecessary costs on automakers, and increase prices for consumers. The group said it is the equivalent of mandating fax machines on the International Space Station.