SoundExchange Offers Cap On Minimum Royalty Fees
June 29, 2007

SoundExchange has proposed a voluntary cap on the minimum fees charged against royalties for sound recordings played on Internet Radio.  The proposal caps advance payments at $2,500 per service.  Regulations due to go into effect on July 15 would require each webcasting service to pay a $500 minimum fee per station or channel regardless of the overall number of stations/channels they are streaming. By making this offer, SoundExchange maintains it "is addressing certain webcasters’ concerns about their liability for per channel minimums."

“There was a lot of misunderstanding out there about how the minimum fee would apply, and frankly some people were wrongly stating SoundExchange’s policy on this matter,” said SoundExchange Executive Director John Simson. “We certainly don’t want anybody to get unduly hurt by the minimum fee, but there is a value to music and a cost to administering the digital royalty program, and we wanted to ensure that everyone was treated fairly – artists, webcasters and record labels.” 

“The idea that the per-channel minimum might have a disproportionate impact on certain Internet Radio stations was never presented to the Copyright Royalty Judges,” added SoundExchange General Counsel Michael Huppe.  “Nonetheless, at the request of Congress, we are trying to work with the small subset of affected webcasters, and are offering this proposal in the hopes of addressing those concerns.”

SoundExchange is also currently in active negotiations with small commercial webcasters and non-commericial webcasters such as public radio and college stations to provide below-market rates under terms similar to those they enjoyed in previous years under the Small Webcaster Settlement Act. 

Between the minimum cap proposal and an effort to accommodate small and non-commercial webcasters, SoundExchange maintains it has "made a good faith effort to address the elements of the recent webcasting ruling that have been of concern to Congress and to individual webcasters."

“I’ve said all along, we are in this together.  We want to see artists and labels fairly paid for the music they provide and we want to see Internet radio grow and flourish,” said Simson.  “There’s no question the new rates set by the Copyright Royalty Judges are fair and are reasonable in the current market.  In proposing these various accommodations to webcasters (especially small and non-commercial webcasters), SoundExchange has taken the initiative to attempt to address the concerns that have been raised by Congress and affected webcasters.”

Simson also noted that, in yesterday’s hearing on webcasting royalty rates before the U.S. House Committee on Small Business, the panel’s ranking Republican, Steve Chabot of Ohio, concurred with Chairwoman Nydia Velazquez, D-N.Y., when she surmised, "I really don't think Congress is the best vehicle to resolve this type of issue.”

 


 




 
Breaking News
eQB NOW
Rich Davis Named VP Of Programming For iHeartMedia-Seattle
December 18, 2014
Sharon Dastur Named SVP/Programming Integration At iHeartMedia
Mark Medina Named Program Director At Z100/New York
Denon Electronics, iHeartMedia Announce Partnership
Deezer Appoints Hans-Holger Albrecht CEO
TuneCore Acquires DropKloud And Its Founders
SoundHound Reveals Top Songs, Artists, Albums Of 2014
In Brief - December 18, 2014
December 17, 2014
iHeartMedia Names Don Parker VP/Programming, For San Francisco And Sacramento
Senate Approves Michael O'Rielly For Five-Year FCC Term
Nielsen Report: A Focus On The Public Radio Listener
iHeartRadio Jingle Ball 2014 To Air On The CW Network
In Brief - December 17, 2014
December 16, 2014
Beasley Names Rafe D'Amico VP/Strategic Partnerships
NRG Media Taps Shane Sparks Market Manager, Northwoods, WI Cluster
Shazam Upgrades Windows Phone App
KLUC’s 16th Annual Chet Buchanan & The Morning Zoo Toy Drive Breaks Records
Rdio Brings Personalized Internet Radio, On-Demand Music Subscription To Windows Phone 8.1
In Brief - December 16, 2014
December 15, 2014
CBS Radio, Carson Daly Agree To Multi-Year Contract Extension
JVC Media Closes On Purchase Of WHKQ/Orlando
Bruce Gilbert Named SVP/Sports For Cumulus And Westwood One
Don Martin Rises To SVP/Sports Programming For Premiere Networks
Columbia Promotes Bryan Younce To SVP/Video, Content Production
In Brief - December 15, 2014
Music News
J. Cole Earns Third Chart-Topper
Quick Hits: Dick Clark's New Year's Rockin' Eve, Joan Jett & The Who, Metallica, Van Morrison, Grammy Special Merit Awards
Green Day, Joan Jett Make The List For Rock Hall
Quick Hits: Madonna, Michael Jackson, The Voice
Quick Hits: Imagine Dragons, Iggy Azalea & Britney Spears, Mad Season, David Byrne / Talking Heads tribute concert
Iggy Azalea Maps Out Arena Tour
Quick Hits: Ne-Yo, Selena Gomez, Gwen Stefani & Pharrell Williams, Stevie Wonder, Everclear, Alex & Sierra, Modest Mouse
Taylor Swift Spends Another Week At #1
The Week In Review: 12/8-12/12
Quick Hits: Epicenter Festival, Beyoncé, Dr. Dre, American Music Priz
Quick Hits: Coldplay, New Year's Rockin' Eve, Golden Globe Song nominees, Judas Priest
Quick Hits: BET Honors, Modest Mouse, Rush
U2 Extends iNNOCENCE + eXPERIENCE Tour
Quick Hits: Kid Ink, Seether & Rise Above Fest, TV On the Radio, Bob Dylan
Beyoncé, Sam Smith & Pharrell Nab Six Grammy Nods
FMQB NOW

Year-End
At Issue

           2014
Interview Hilights

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!