Living Wage for Musicians Act of 2025
Summary
The Living Wage for Musicians Act of 2025 aims to establish an Artist Compensation Royalty Fund. This fund would be used to provide payments to eligible featured and non-featured artists based on qualifying streams of their music. The fund would be administered by an eligible entity designated by the Register of Copyrights and approved by the Librarian of Congress.
Expected Effects
The Act would require service providers (streaming platforms) to charge an additional fee to subscribers, ranging from $4 to $10, to fund the royalty payments. It also mandates that service providers contribute 10% of their non-subscription revenue to the fund. This could lead to increased income for musicians but also higher costs for consumers.
Potential Benefits
- Provides a new revenue stream for musicians, particularly those who rely on streaming services.
- Establishes a framework for compensating both featured and non-featured artists.
- Creates a dedicated fund to support artists' livelihoods.
- Could incentivize service providers to promote a wider range of artists.
- Requires transparency and record-keeping from both the fund administrator and service providers.
Potential Disadvantages
- Increases costs for consumers of streaming services through the living wage royalty fee.
- May disproportionately affect smaller streaming services or those with lower subscription fees.
- The definition of 'qualifying stream' could limit the benefits for some artists.
- The administrative overhead of managing the fund could reduce the amount available for artists.
- Potential for disputes over the allocation of funds and the definition of 'featured' vs. 'non-featured' artist.
Most Disadvantaged Areas:
Constitutional Alignment
The Act's constitutional alignment is complex. Congress has the power to regulate copyright and promote the progress of science and useful arts (Article I, Section 8, Clause 8). However, the required fees and revenue contributions from service providers could raise concerns under the Fifth Amendment's Takings Clause if deemed an uncompensated taking of private property. The Act also needs to be assessed against the First Amendment regarding freedom of speech and potential restrictions on service providers' business models.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).