SoundExchange Urges CRB To Reject Calls To Reduce Royalties

Wants No Change In Rate

SOUNDEXCHANGE filed with the COPYRIGHT ROYALITY BOARD (CRB) its opposition to the webcasters' motions for reconsideration submitted earlier this month in the webcasting rate case. The webcasters are attempting to convince the CRB to reconsider its decision regarding royalty rates paid to performing artists and record labels for the use of their sound recordings in connection with Internet radio. Noting that no new material facts or fresh evidence has suddenly materialized to give the CRB valid reason to revisit its decision, SOUNDEXCHANGE is asking that these motions be summarily dismissed.

Yes, Internet radio is important to the music community, but that doesn't mean that artists and record labels don't deserve fair compensation for their works.

Over 14 months of proceedings the CRB reviewed thousands of pages of evidence and heard from almost 50 witnesses (including many experts) from all interested parties before issuing a comprehensive 115 page decision. "Just because you don't like the outcome of a fairly played game doesn't mean you should ask the referee to order the game replayed," said SOUNDEXCHANGE Executive Director JOHN SIMON. "Yes, Internet radio is important to the music community, but that doesn't mean that artists and record labels don't deserve fair compensation for their works."

SOUNDEXCHANGE believes that when the new rates settle in, internet radio will continue to grow and prosper. With that success, artists will be fairly paid for their contribution to that success. "A lot of internet users think of music as a product created and generated by major labels with corporate megadollars and so think nothing of taking or paying very little to use this music," said artist MICHELLE SHOCKED. "But the evidence shows that a large majority of music is now created by independent artists with very small margins trying to earn a living and it's in that context that the recent decision to raise the internet broadcasting rates is seen as an encouragement to creativity and independence."

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