The "American Music Fairness Act" aims to amend title 17 of the United States Code to ensure fair treatment for both radio stations and artists regarding the use of sound recordings. A central provision extends the public performance right for sound recordings to all audio transmissions, including those by terrestrial broadcast radio stations, which were previously exempt from paying performance royalties to sound recording copyright owners. The bill establishes a statutory license for terrestrial broadcasters, requiring them to pay royalties for the public performance of sound recordings. It mandates that the Copyright Royalty Judges initiate proceedings to determine these royalty rates for nonsubscription broadcast transmissions, with the initial rates effective from the date of enactment until December 31, 2028, and subsequent reviews every five years. To protect smaller entities, the Act introduces special tiered royalty rates for small broadcasters . These rates are significantly lower, ranging from $10 to $500 annually, based on the station's revenue and whether it is a public broadcasting entity, provided the station and its affiliates meet specific aggregate revenue thresholds. Furthermore, the legislation clarifies royalty distribution for direct licenses between copyright owners and transmitting entities, ensuring that a portion of these payments is distributed to featured and nonfeatured artists. Importantly, the bill explicitly states that its provisions will not adversely affect the public performance rights or royalties payable to songwriters or copyright owners of musical works. Finally, when determining royalty rates, the Copyright Royalty Judges are directed to consider economic, competitive, and programming information, including the promotional value of a station's service and its potential impact on the sales of phonorecords or other revenue streams for sound recording copyright owners.