The copyright board has voted, and the battle is over!
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Full decision - crb_responsetomotions.pdf
Summary is that the small webcasters lost!
There's still appeals, law suits and more to come...
There is no way this can stand as is. It's obscene and perverse in more ways than one.
I don't share your optimism. There really isn't anything against the law here, so I can't see this going to court.
It's understandable. I think it'll work out, though it'll be a long process.
One thing I haven't heard much about is SoundExchange. The government created a monopoly when they created those thieves. Don't hear many people griping about that, but time will tell.
5 years ago it was nearly the same issue, congress stepped in at the last moment and created the webcasters ruling which protected us then. With as many high powered lobbyists as have shown up with support the last few days I can easily see it happening again. Hopefully this time they'll support something longer than 5 years.
What annoys me the most is that terrestrial radio gets more breaks than webcasters and pay nowhere near the fees we currently do.
That's why the web rates are so high, they are pissed that they can't collect from the broadcasters.
You know, that's just childish enough that it makes sense! 🙂
(Not that you said it, but that that would be their motivation in the web rates)
BREAKING NEWS
Eleventh-hour legislation proposed to save Internet radio from almost certain demise came into being today.
The Internet Radio Equality Act, sponsored by Rep. Jay Inslee (D-WA), and currently with eight cosponsors, was just introduced on the House floor.
Among other provisions, the bill vacates the CRB, removes the 'willing buyer/willing seller' standard, and establishes a satellite radio-like royalty of 7.5% of revenues or .33 cents per listener hour.
The rates are "interim" for the 2006-2010 period -- after that, they will need to be decided again, this time based on the same standard used for satellite radio.
The bill has five major provisions:
* Nullifies the recent decision of the CRB judges
* Changes the royalty rate-setting standard that applies to Internet radio royalty arbitrations in the future so that it is the same standard that applies to satellite radio royalty arbitrations -- the 801(b)(1) standard that balances the needs of copyright owners, copyright users, and the public (rather than "willing buyer / willing seller"). (For more detail on this point, read the recent RAIN issue on "Copyright law," here.)
* Instructs future CRBs that the minimum annual royalty per service may be set no higher than $500.
* Establishes a "transitional" royalty rate, until the 2011-15 CRB hearing is held, of either .33 cents per listener hour, or 7.5% of annual revenues, as selected by the provider for that year. Those rates would be applied retroactively to January 1, 2006. (The logic behind this rate, incidentally, is an attempt to match the royalty rate that satellite radio pays for this royalty -- thus the name of the bill.)
* Expands the Copyright Act's Section 118 musical work license for noncommercial webcasters to enable noncomms to also perform sound recordings over Internet radio at royalty rates designed for noncommercial entities, and sets an transition royalty at 150% of the royalty amount paid by each webcaster in 2004 for their "musical works" royalty (i.e., to ASCAP, BMI, and SESAC).
Now that the bill has been introduced, the SaveNetRadio.org "call to action" is specific and direct: The site is now asking listeners to call their Representative and ask him/her to "cosponsor the Internet Radio Equality Act, introduced by Representative Jay Inslee." Once listeners click the "Call Your Representatives" button on the site and enter their zip code, they are given their Representative's House office phone number and a list of "talking points" to emphasize.
Source: RAIN http://www.kurthanson.com/archive/news/042607b/index.shtml
news.com.com/Lawmakers++propose+reversal+of+Net+radio+fee+increases
Regards,Lee
www.freewebs.com/wilcomlabs