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Tag Archive: SoundExchange

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.

Webcasters, SoundExchange Near Agreement

Webcasters, SoundExchange Near Agreement

Salvation may be on the way for webcasting radio stations like Pandora, which have long warned that new royalty rates may kill them off. On Saturday, the House of Representatives unanimously passed a bill [PDF] that would aid the stations by giving them another two months to negotiate with SoundExchange, the organization that sets the rates.

All parties involved actually supported the Webcaster Settlement of 2008, including webcasters, SoundExchange, and even the RIAA. The National Association of Broadcasters, an organization that represents traditional radio stations, originally resisted the measure, but dropped opposition after the proposed negotiation period was extended from one months to two months, giving it more time to reach its own deal with SoundExchange.

Net Radio Compromise Invokes DRM

Net Radio Compromise Invokes DRM

Although the dust is far from settled in the negotiations which will determine the fate of hundreds (or thousands) of online radio webcasters in the United States, smaller operations have received a bit of a reprieve from the music industry organization SoundExchange, which has agreed to let stations continue paying royalty rates in effect before July 15, 2007, while good-faith negotiations on a new royalty rate structure are underway. SoundExchange has not put this commitment in writing, but SoundExchange’s John Simson made the commitment in front of the House Commerce committee; while such a commitment creates no legal obligation, it would be quite difficult for SoundExchange to back out of the promise and maintain any credibility.

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.

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