DiMA Responds To SoundExchange Proposal
July 2, 2007 at 12:56 PM (PT)
After SOUNDEXCHANGE issued a press release last week stating that the organization has proposed a voluntary cap on the minimum fees charged against royalties for sound recordings played on Internet radio (NET NEWS 6/29), DIGITAL MEDIA ASSOCIATION (DiMA) Exec. Director JONATHAN POTTER issued the following statement:
"DiMA would agree to a $2,500 per-service cap for the entire term of the CRB ruling (through 2010), but not the partial-offer presented to us in writing, which would terminate in 2008. Any offer that doesn't cover the full term is simply a stay of execution for Internet radio. The looming 2009 billion-dollar threat is destabilizing and inhibits investment and growth. DiMA, like thousands of artists and millions of consumers, wants a solution that promotes long-term industry growth. A billion-dollar 'minimum fee' is equally absurd in 2006, 2007, 2008, 2009 or 2010. It should be eliminated -- period.
"DiMA is disappointed to have to issue this statement; we would prefer to resume negotiating important issues directly with our counterparts rather than through press releases."