SoundExchange Agrees On Royalty Cap With Major Webcasters...
August 23, 2007 at 5:44 AM (PT)
Major label Net designate SOUNDEXCHANGE has announced today that it has reached agreement with several of the largest webcasters on a proposed cap on the minimum fee charged against royalties for sound recordings played on Internet Radio. Precluding recently-enacted regulations by the Copyright Royalty Board (CRB) that requires each webcasting service to pay a $500 minimum fee "per station or channel," the new deal will cap the liability to $50,000 per service on the $500 per station advance against royalties.
Although this agreement applies only to signatory services and only on behalf of SOUNDEXCHANGE members, it is the intention of all parties to present this agreement to the Copyright Royalty Judges and seek its adoption industry-wide.
"This agreement shows that we can address specific issues of concern to the industry through private negotiations while upholding the integrity of the CRB process and while protecting the interests of SoundExchange members," SOUNDEXCHANGE Exec. Dir. JOHN SIMSON stated.
Still outstanding is a long-term pact with smaller webcasters; last TUESDAY (8/21), SOUNDEXCHANGE made an interim offer for the smaller webcasters at the previous rate. The webcasting parties' reaction, at this point, can best described as wary.
Nevertheless, SOUNDEXCHANGE expressed confidence that it has met Congressional demands that it be more flexible in reaching a new agreement with webcasters. "With the small webcaster agreement we sent out earlier this week, with progress on the non-commercial webcaster front, and with this agreement, SOUNDEXCHANGE has now addressed the key issues of concern with respect to the CRB rate-setting decision while still protecting the value of sound recordings,' SIMSON said. "We now hope to move forward together with our partners, the webcasters, in providing an enhanced listening experience through Internet radio."