Report: Two Senators Threaten "Expeditious" Action To Combat Label Pressure Against Net Radio
August 3, 2007 at 11:35 AM (PT)
THE RADIO AND INTERNET NEWSLETTER reports that Sens. RON WYDEN (D-OR) and SAM BROWNBACK (R-KS) have publicly gone on the offensive, chiding the recording industry for dragging its feet in negotiations with webcasters over performance royalty negotiations. Unless the two parties can make "great progress" in negotiations between now and LABOR DAY, the Senators promise to take "expeditious steps" towards passing the Internet Radio Equality Act.
Their statement cites an offer extended by the NAB last June that has gone unanswered by SOUNDEXCHANGE, as well as the difficulty webcasters are having in scheduling meetings with the record industry group. Furthermore, the two charged that the label group was demanding an "unfounded" per-channel minimum fee (to combat what they call "stream-ripping") to pressure webcasters into adopting Digital Rights Management.
"While we strongly support a negotiated solution, we will not allow the minimum fee issue to be used to force an agreement that mandates DRM technology and fails to respect the established principles of fair use and consumer rights," they stated.
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