RAIN: Court Upholds CRB Decision
July 13, 2009 at 6:15 AM (PT)
KURT HANSON's RAIN NEWSLETTER reports "THE U.S. COURT OF APPEALS has rejected webcasters’ appeal of the COPYRIGHT ROYALTY BOARD’s 2007 royalty rate determination, upholding the CRB’s original decision.
"For the most part, the Court did not believe webcasters’ showed that the CRB decision was 'arbitrary and capricious,' a 'high standard of judicial review that the Courts accord when reviewing supposedly 'expert' administrative agency decisions,' explains industry attorney DAVID OXENFORD, who represented commercial webcasters in the appeal.
"However, the Court did find the $500 per-channel minimum fee set by the CRB to be 'arbitrary, capricious, and not supported by record evidence.' The ruling states that Court has decided to 'vacate the $500 minimum fee for both noncommercials and commercials, and remand those portions of the determination for reconsideration by the Copyright Royalty Judges.' That fee would be very problematic for webcasters with hundreds of channels, though SOUNDEXCHANGE imposed a $50,000 minimum fee cap in 2007."