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Filed under: Audio, Internet

Music to our ears: SoundExchange and webcasters reach compromise

Save Net RadioNet radio isn't dead yet. SoundExchange, the organization responsible for collecting royalties from online broadcasters has reached an agreement with the Digital Media Association that will allow the music to keep playing, we think.

A quick history less:

Earlier this year, the U.S. Copyright Royalty Board voted to raise rates for internet broadcasters. In some cases, the new rates could have cost billions of dollars, driving pretty much every online radio station out of business. After months of contentious debate, SoundExchange agreed last month not to enforce the new rates until some sort of compromise could be reached.

Today's compromise involves a $500 cap per channel, with a $50,000 overall cap per service.

Webcasters will have to provide SoundExchange with a detailed annual list of songs performed and the Digital Media Association will work with SoundExchange to "evaluate the issue of streamripping." Presumably that means the two organizations will try to find ways to prevent users from making permanent copies of streaming audio files.

The new fees could still be a bit steep for small time webcasters. But today's announcement should keep larger companies like Pandora, Yahoo! Launch, and Last.fm piping out plenty cups of steaming hot internet music.

Filed under: Audio, Internet

Court rejects webcasters request for rate hike delay

PandoraLawmakers have gotten involved, webcasters held a day of silence protest, and SoundExchange has agreed to reduce its fees (although that offer was rejected). But the big day is still just around the corner. On Sunday, the U.S. will levy new royalty rates on internet broadcasters. In some cases, those rates could be high enough to seriously threaten the existence of smaller stations and web sites.

A coalition of webcasters had sought another delay in the implementation of the new rates until some sort of a solution could be found. But a federal appeals court ruled that the group had not met the standards necessary to grant a stay.

In other words, there's a very good chance that sites like Pandora, Last.fm, Yahoo! LAUNCHcast and others could go off the air next week until some sort of an agreement is reached with the music industry.

The Save Net Radio coalition is urging supporters to call members of Congress in support of the Internet Radio Equality Act. But we're rather curious to see if the standoff could lead to a backlash against the record labels. After all, much like traditional radio, internet broadcasts serve to promote new music and songs. If fewer people are exposed to new artists, will record sales take a hit?

Filed under: Audio, Internet, News

Bill introduced to save internet radio

PandoraCongressman Jay Inslee and eight cosponsors have introduced the Internet Radio Equality Act, designed to combat the recent rate hike implemented by the Copyright Royalty Board.

If no action is taken, royalty rates on internet music broadcasts will jump significantly on May 15th, potentially putting many small netcasters out of business.

Among other things, the new bill would:
  • Nullify the Royalty Board decision.
  • Change the arbitration process for internet radio rate setting.
  • Establish that the minimum annual royalty a netcaster has to pay can be no higher than $500.
  • Set a transitional royalty rate that is the same as the rate paid by satellite broadcasters.
The bill gives the save net radio crowd a chance to rally behind a specific action. Up until now, they'd been asking folks to write their local members of Congress to demand action. Now they're asking for people to call legislators and ask them to support the bill.

Filed under: Audio, Internet

Judges to webcasters: pay up

PandoraDespite a huge outcry from the internet radio community over new royalty rates set to take effect on May 15th, a panel of judges has rejected a request to reconsider those rates.

The Copyright Royalty Board decided not to postpone the May 15th implementation date, or to hear an appeal. The judges did agree to let webcasters temporarily calculate fees by average listening hours, rather than by each time a listener hears a song.

But that's not going to be enough to save many small and non-profit webcasters like Pandora, Last.fm and Radio Paradise who say the new rates could put them out of business. A coalition of internet broadcasters will continue to push Congress for intervention, but the chances of any action being taken before May 15th are slim.

[via Techdirt]

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