NAB And SoundExchange Seek Rejection Of Copyright Royalty Board Rates

Requesting To Overturn Rate Increase

The NATIONAL ASSOCIATION OF BROADCASTERS (NAB) and SOUNDEXCHANGE are both asking a WASHINGTON federal appeals court to overturn a COPYRIGHT ROYALTY BOARD increase on radio streaming royalty rates, questioning the evidence used to set the same rate for simulcasts as custom radio. SOUNDEXCHANGE is also arguing the Board's arguments for decreasing rates lack merit.

According to INSIDE RADIO, The CRB filed a motion in OCTOBER asking the court to approve the decision released in JUNE 2021, which said after an analysis that lasted more than a year, the final decision was “reasonable,” despite efforts by broadcasters and SOUNDEXCHANGE to have it overturned.

The ruling raised radio’s rate 17% from the prior for every 100 songs streamed on non-subscription, advertising-supported webcasts. CRB judges also rejected an attempt by the NATIONAL ASSOCIATION OF BROADCASTERS to create a two-tier system, with streams that simulcast over-the-air radio stations paying a lower rate.

Despite securing higher rates, SOUNDEXCHANGE also appealed, targeting the eight percent rate increase that was put on subscription services. SOUNDEXCHANGE asked the appeals court to toss out the rate and order the CRB to start over with a royalty that is “no lower” for ad-supported non-interactive services like radio webcasts than what other streamers pay.

Despite having very different ideas on the direction the CRB decision, both NAB and SOUNDEXCHANGE agree that it should not be upheld by the appeals court. Click here to read more.

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