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Tag Archive: royalty

Broadcasters, Webcasters Split on Royalties

Broadcasters, Webcasters Split on Royalties

The brouhaha over royalties owed to artists and content providers for streaming music and audio programming via the Internet is changing…but is filled with as much drama as ever. The National Association of Broadcasters (NAB) has reached a new royalty agreement with SoundExchange, a non-profit performance rights organization tasks with collecting royalties for so-called “non-interactive” digital transmissions. The agreement sets royalty rates for radio broadcasters who also run online streams; rates for 2009 and 2010 are reduced by about 16 percent from the rates set by the Copyright Royalty Board in the Webcaster Settlement Act of 2008, then will climb to about a quarter-cent per streamed sound recording by the year 2015.

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Copyright Board Lets Music Royalties Ride

The Copyright Royalty Board—which establishes statutory royalty rates paid to content authors and publishers in many media—has decided to leave royalty rates unchanged for physical media and so-called “permanent” digital music downloads. Every time a consumer buys a song on CD or downloads a version from an online music service, authors and publishers earn 9.1 cents.

The fee applies to CDs and downloaded music tracks, but doesn’t apply to “non-permanent” subscription services. The CRB also voted to establish the first royalty rate for ringtone purchases: 24 cents per tone.  Read more...

SoundExchange Won’t Enforce Rate Hike?

Online music broadcasters may have received a temporary stay of execution from an unlikely source: speaking at a roundtable committee meeting held by Massachusetts representative Ed Markey, SoundExchange’s executive director Jim Simson said his organization will not enforce new music royalty rates approved by the Copyright Royalty Board. Instead, the new rates will be postponed indefinitely while SoundExchange works with online broadcasters to work out a solution.  Read more...

Webcasters’ Royalty Rate Appeal Denied

Webcasters

Webcaster’s Royalty Rate Appeal Denied Hundreds of U.S.-based net radio station may go silent Monday, as an appeals court denies a motion to delay the onset of new, significantly higher royalty rates.

The U.S. Court of Appeals for the District of Columbia circuit has denied a motion to postpone the implementation of new music royalty rates to be levied on U.S.-based Webcasters and online radio stations. In a brief statement, the court denied the appeal, saying the objections raised by webcasters did not meet the "stringent standard" required of an appeal. The denial shoots down Webcasters’ best hope of avoiding a controversial music royalty rate hike enacted by the Copyright Royalty Board in March of 2007; many Internet broadcasters have complained the new royalty rates are onerous and will immediately put them out of business if enacted.

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Radio Webcasters Plan Day of Silence

Radio Webcasters Plan Day of SilenceWebcasters are planning a “Day of Silence” on Tuesday, June 26, to protest new Internet broadcast royalty rates scheduled to go into effect on July 15 in the United States. On June 26, participatingWebcasters will shut down their feeds to both bring attention to their cause and give Internet radio listeners a taste of what life might be like if new royalty rates go into effect. Some webcastersplan to shut down their feeds entirely; others will sprinkle announcements about the rate hike amidst stretches of silence.

“The campaign to save Internet radio—a genuine grassroots movement comprised of hundreds of thousands of webcasters, artists and independent labels, and Net radio listeners—has quickly brought this issue to the national forefront and the halls of Congress, but there is still more to be done before the approaching deadline of July 15th,” said Jake Ward, a spokesperson for the SaveNetRadio Coalition. “On Tuesday, thousands of webcasters will call on their millions of listeners to join the fight to save Internet radio and contact their Congressional representatives to ask for their support of the Internet Radio Equality Act

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U.S. Webcasters Facing Harsh Royalty Rules

A panel of judges on the U.S.’s Copyright Royalty Board have upheld (PDF) a previous ruling which substantially increases the amount of royalties Internet broadcasters and Webcasters would have pay for the use of music in online radio and other streaming media. Under the new royalty structure many Internet broadcasters and terrestrial stations offering online feeds of their programming may be forced to shut down operations.  Read more...

Philips Negotiates New CD-R Royalties

A consensus is not being expected till the end of June at the earliest, according to the Taiwanese makers.

Philips currently imposes royalty charges of US$0.045 per CD-R disc and US$0.06 per DVD+R disc on Taiwanese licensees. As the OEM price for CD-Rs has dropped to US$0.15-0.2 per disc, royalty payments have risen to 22.5%-30% of revenues.

In addition to the drop in CD-R pricing, other factors lead Taiwanese makers to expect Philips to lower its royalty charges. On March 11, a US International Trade Commission’s (ITC) final judgment ruled against Philips in a case where the company accused two Taiwanese optical disc makers of patent infringement. Also, Japanese companies including Sony, Taiyo Yuden and others have offered lower royalty charges for Taiwanese makers.  Read more...

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