Internet Radio Royalty Hikes Delayed - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

02:22 PM

Internet Radio Royalty Hikes Delayed

SoundExchange said it will extend 1998 royalty rates for small commercial Internet radio companies.

SoundExchange has offered to extend 1998 royalty rates for small commercial Internet radio companies, just days before higher rates were scheduled to take effect.

The group announced the move Thursday, after promising during Congressional hearings that it would postpone rate hikes, at least temporarily. The promise came after the U.S. Court of Appeals for the District of Columbia denied motions to force a postponement.

"While this decision fully validates the rates set by the [Copyright Royalty Judges], SoundExchange is mindful of the need to nurture the growth of the Internet radio industry," the industry group said in a statement. "That is why SoundExchange has offered to extend 1998-era below market rates to small commercial Webcasters, and to keep rates at 2003 levels for thousands of non-commercial Webcasters. This would mean that the vast majority of Internet services would have no rate increase of any kind from 1998-2010. Additionally, SoundExchange is in active negotiations with the Digital Media Association and others with respect to a cap on minimum fees."

The court decided not to throw out previous rulings by Copyright Royalty Judges regarding fee increases for recording artists and record labels, while a general appeal of the rate hikes continues winding its way through the judicial process. The judges had deliberated for more 18 months on whether rate hikes set by a federal copyright board were fair.

"We are pleased by this decision, which vividly demonstrates that the Copyright Royalty Judges got it right when they set royalty rates and terms for the use of music on Internet radio," John Simson, executive director of SoundExchange, said in a statement. "This is a major victory for recording artists and record labels whose hard work and creativity provides the music around which the Internet radio business is built. Notwithstanding this victory, we continue to reach out to the Webcasting community to reach business solutions. We look forward to working with our partners, the Webcasters, to grow opportunities across the board for Internet radio operators and recording artists."

Michael Huppe, general counsel for SoundExchange, said that he thinks this week's ruling indicates that the rate hikes are fair. "The court's decision is a reminder of the extremely thorough and thoughtful process by which the new royalty rates were set," he said.

Representatives for DiMA did not immediately return calls for comments Friday.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Can Low Code Measure Up to Tomorrow's Programming Demands?
Joao-Pierre S. Ruth, Senior Writer,  11/16/2020
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Flash Poll