[LINK] Fwd: vip-l: Fwd: Article: Judges Reject Appeals From
jwhit at melbpc.org.au
Thu Apr 19 09:13:52 EST 2007
Looks like online radio listeners will be losing some tunes. (sorry
about the formatting, but I'm not going through line by line to fix -
came to me this way)
From: djc djc at 3wcomputing.com
To: pc-audio at pc-audio.org
Judges Reject Appeals From Webcasters
Sites Can Tally Fees Per Listening Hours
POSTED: 6:59 pm PDT April 16, 2007
UPDATED: 6:59 pm PDT April 16, 2007
LAS VEGAS --
Internet radio broadcasters were dealt a setback Monday when a panel of
judges threw out requests to reconsider a ruling that hiked the royalties
pay to record companies and artists.
A broad group of public and private broadcasters, including radio stations,
startup companies, National Public Radio and major online sites like Yahoo
Time Warner Inc.'s AOL, had objected to the new royalties set March 2,
would force a drastic cutback in services that are now enjoyed by some 50
In the latest ruling, the Copyright Royalty Board judges denied all motions
and also declined to postpone a May 15 deadline by which the new royalties
to be collected.
However, they did grant leniency on one point, allowing the webcasters to
fees by average listening hours, as they had been, as opposed to the new
charging a royalty each time every song is heard by an online listener.
counts for last year and this year. After that, the new per-song,
structure goes into effect.
Many webcasters say the sharply higher royalty fees will put them out of
Talk of the ruling dominated a one-day meeting of Internet radio
held in Las Vegas alongside the annual conference of the National
Broadcasters, a group representing local radio and TV stations.
N. Mark Lam, the CEO of Live365 Inc., a privately held company that
streams from thousands of radio stations and other small webcasters, said
the new royalty rules, "there is no industry."
Lam, who joined the venture capital-backed company about two years ago,
just barely broke even last year and had about 4.5 million unique listeners
Also on Monday, several Internet radio broadcasters announced a campaign to
awareness of the issue and encourage listeners to write to their
Small broadcasters have received relief from Congress in the past,
a law passed five years ago that gave them a break on royalty rates. The
allowed them to pay about 12 percent of their revenues instead of having to
per-song, per-hour rates like larger companies had to.
David Oxenford, a lawyer representing several webcasters, said the next
likely an appeal to the U.S. Court of Appeals for the District of Columbia
but he noted that process could take at least a year. Meanwhile, he said,
of successfully getting a court to block the decision of the royalty board
SoundExchange, a nonprofit group that collects the online royalties from
and distributes them to record labels and artists, hailed the ruling in a
and said it looked forward to working with Internet radio companies in
order to ensure
that the industry succeeds.
Jonathan Potter, the head of the Digital Media Association, which
large webcasters including Yahoo, AOL and Microsoft Corp.'s MSN network,
group was not currently in talks with SoundExchange but may be soon. He
group and other webcasters would be turning to Congress, where he said he
lot of legislative support."
The royalties in question only cover digital transmissions of music, and
to terrestrial radio stations, as traditional radio play is seen as a
record labels by promoting sales of recorded music. Both digital
regular radio stations pay a separate royalty to the publishers and
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