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troutman · 03-05-2007, 02:18 PM

http://www.kurthanson.com/archive/ne...07/index.shtml

The Copyright Royalty Board (CRB) has announced its decision on Internet radio royalty rates, rejecting all of the arguments made by Webcasters and instead adopting the "per play" rate proposal put forth by SoundExchange(a digital music fee collection body created by the RIAA).

Radio Paradise's Bill Goldsmith notes, "This royalty structure would wipe out an entire class of business: Small independent webcasters such as myself & my wife, who operate Radio Paradise. Our obligation under this rate structure would be equal to over 125% of our total income. There is no practical way for us to increase our income so dramatically as to render that affordable."

Although this is undeniably a huge victory for the legal departments of record labels (or at least for the lawyers at their industry trade association, the RIAA), I doubt that the heads of the record labels and their marketing executives actually want to see Internet radio driven out of business. (This may be a case of "Be careful what you wish for, you may get it.")

Last summer, there were rumors of seemingly productive negotiations going on between Sound Exchange and webcasters regarding a voluntary (i.e., not statuatory) percentage-of-revenues royalty rate. Everyone's best hope, I believe — for webcasters, labels, musicians, and consumers alike — would be if those negotiations could resume.

03-05-2007, 02:18 PM	#1
troutman Unfrozen Caveman Lawyer Join Date: Oct 2002 Location: Crowsnest Pass Exp:	Bad News for Internet Radio (US) http://www.kurthanson.com/archive/ne...07/index.shtml The Copyright Royalty Board (CRB) has announced its decision on Internet radio royalty rates, rejecting all of the arguments made by Webcasters and instead adopting the "per play" rate proposal put forth by *SoundExchange*(a digital music fee collection body created by the *RIAA). Radio Paradise*'s Bill Goldsmith notes, "This royalty structure would wipe out an entire class of business: Small independent webcasters such as myself & my wife, who operate Radio Paradise. Our obligation under this rate structure would be equal to over 125% of our total income. There is no practical way for us to increase our income so dramatically as to render that affordable." Although this is undeniably a huge victory for the legal departments of record labels (or at least for the lawyers at their industry trade association, the RIAA), I doubt that the heads of the record labels and their marketing executives actually want to see Internet radio driven out of business. (This may be a case of "Be careful what you wish for, you may get it.") Last summer, there were rumors of seemingly productive negotiations going on between Sound Exchange and webcasters regarding a voluntary (i.e., not statuatory) percentage-of-revenues royalty rate. Everyone's best hope, I believe — for webcasters, labels, musicians, and consumers alike — would be if those negotiations could resume.