DiMA, SoundExchange Play 'Lets Not Make A Deal' On Royalties
July 19, 2007 at 2:40 PM (PT)
The ongoing negotiations to come up with an equitable Internet Radio performance royalty rate seem to be deteriorating by the day. Evidence presented on the RADIO AND INTERNET NEWSLETTER website seems to indicate that a new, arguably irrelevant issue has thrown the negotiations off the tracks.
According to the RAIN report, label interests, represented by SOUNDEXCHANGE, have raised the notion of compensation for "stream-ripping," whereby listeners digitally record music streamed from websites. Net Radio parties, led by the DIGITAL MEDIA ASSOCIATION (DiMA), find the new issue troubling in that the practice is rare and difficult to accomplish -- especially compared to the ease and efficiency in illegal downloading.
What's more, this new topic distracts attention from more pressing issues that need to be resolved. Indeed, DIGITAL MUSIC NEWS reports that DiMA has rejected the latest SoundExchange offer in part because it made "unrelated and unworkable demands as a condition for resolving the minimum fee issue." Seconding that emotion was THE DIGITAL FREEDOM CAMPAIGN, which complained that "stream-ripping" was an unrelated issue to the current Internet radio royalty rate debates.
Judging by a series of letters between SoundExchange and DiMA (also posted on RAIN), it seems that both parties are growing farther apart. For more on the dispute, as reported from the Net radio perspective, click here.