SoundExchange: Internet Radio Bill Would Strip Artist Payments
April 27, 2007 at 11:14 AM (PT)
SOUNDEXCHANGE issued a press release today (4/27) saying that the bill introduced yesterday (NET NEWS 4/26) by Rep. JAY INSLEE (D-WA) that seeks to nullify the MARCH 2 ruling of the COPYRIGHT ROYALTY BOARD (CRB) would "gut the fair market rates set by the CRB and result in musicians having to return royalty payments they have already received" and would result in "a windfall of more than $50 million to mega-corporate webcasters like CLEAR CHANNEL and MICROSOFT at the expense of recording artists across the country."
"The idea that this bill would help small webcasters or artists is ludicrous since less than 2% of all royalty payments in 2006 came from small webcasters," said SOUNDEXCHANGE Exec. Director JOHN SIMSON. "The true beneficiaries are the mega-multiplex services like AOL, YAHOO!, MICROSOFT and CLEAR CHANNEL, which will benefit from rates substantially lower than those set by the LIBRARIAN OF CONGRESS in 2002."
SIMSON also railed against SAVENETRADIO, which has been vocal in its efforts to overturn the CRB's ruling. "Because the bill is so heavily favored to enrich the big webcasters, it raises questions as to who is really behind the SAVENETRADIO Coalition," he said. "Although this coalition purports to be on the side of musicians, they have come out in support of this anti-artist bill. SOUNDEXCHANGE has reached out to various webcasters to explore ways to accommodate their needs."