musicFIRST Disputes Pandora's Royalty Predicament
June 19, 2013 at 12:00 PM (PT)
In a blog on its website, music creator lobby musicFIRST asserted that PANDORA and fellow webcasters, who are lobbying for the INTERNET RADIO FAIRNESS ACT on CAPITOL HILL to lower royalty payments in order to foster a growing Internet radio market, aren't truly leveling with the American people. It found a study that described that found no reason for Congressional action on the current royalty system.
"There’s a lot of mythology out there about royalty costs," the release noted. "You read stories almost every day with PANDORA’s pronouncements that its royalty costs are too high, and this is the central premise of advocates for the IRFA legislation. But are they, really? A new study out by economist DR. JEFFERY EISENACH might surprise those who have accepted PANDORA’s argument at face value."
Ultimately, DR. EISENACH concluded, "There is simply no valid public policy argument for Congressional intervention in the statutory copyright royalty process."