Safe harbor for certain collective negotiations

(a) Definitions For purposes of this section: (1) The term antitrust laws has the meaning given such term in subsection (a) of the first section of the Clayton Act (15 U.S.C. 12), and includes— (A) section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to the extent that such section applies to unfair methods of competition; and (B) any State law, rule, or regulation that prohibits or penalizes the conduct described in, or is otherwise inconsistent with, subsection (b) of this section. (2) The term Dominant Online Music Distribution Platform means any entity that— (A) operates an app, website or other online service that is used by members of the public to listen to sound recordings, whether via a digital audio transmission, an audio-visual presentation, or any other means; (B) has annual revenues related to the distribution of music of more than $100 million; and (C) is not eligible for a license under section 114(d)(2) of title 17 of the United States Code. (3) The term generative artificial intelligence means an artificial intelligence system that is capable of generating novel text, video, images, audio, and other media based on prompts or other forms of data provided by a person. (4) The term Individual Music Creator Owner means— (A) any musician or group of musician, producers, mixers, and sound engineers or any corporation, partnership or other entity engaged in the business of using a sound recording for commercial purpose that— (i) owns the copyrights to one or more sound recordings; and (ii) either— (I) has earned less than $1,000,000 in licensing revenues associated with these copyrights in the prior year; or (II) qualifies as a small business under the Office of Management and Budget North American Industry Classification System (NAICS) code 512250; or (B) any songwriter or group of songwriters and producers or any corporation, partnership or other entity engaged in the business of using a musical work for commercial purpose that— (i) owns the copyrights to one or more musical works; and (ii) either— (I) has earned less than $1,000,000 in licensing revenues associated with musical work copyrights in the prior year; or (II) qualifies as a small business under the Office of Management and Budget North American Industry Classification System (NAICS) code 512230. (5) The term musical work means a song’s underlying composition created by a songwriter or composer along with any accompanying lyrics. (6) The term sound recording has the meaning given such term in section 101 of title 17 of the United States Code. (7) The term songwriter has the meaning given such term in section 115(e)(32) of title 17 of the United States Code. (b) Limitation of liability An Individual Music Creator Owner shall not be held liable under the antitrust laws for agreeing with other Individual Music Creator Owners to collectively negotiate music licensing terms with a Dominant Online Music Distribution Platform or a company engaged in development or deployment of generative artificial intelligence, or agreeing with other Individual Music Creator Owners to collectively refuse to license their music to a Dominant Online Music Distribution Platform or a company engaged in development or deployment of generative artificial intelligence, if— (1) the negotiations are not limited to price, are nondiscriminatory as to similarly situated independent creator/owners; (2) the coordination among Independent Music Creator Owners is directly related to and reasonably necessary for negotiations with a Dominant Online Music Distribution Platform that are otherwise consistent with the operation of the Antitrust laws; and (3) the negotiations do not involve any person that is not an Independent Music Creator Owner or a Dominant Online Music Distribution Platform. (c) Rule of construction Except as provided in this Act, this Act shall not be construed to modify, impair, or supersede the operation of the antitrust laws.