Australian Court Rules Royalties For Streaming Radio

An AUSTRALIAN Federal Court has ruled that radio stations in that country pay higher royalties to the recording industry, THE CONVERSATION reports. Representing recording artists and music labels, THE PHONOGRAPHIC PERFORMANCE COMPANY OF AUSTRALIA (PPCA) won a declaration that Internet simulcasts of radio programs fall outside the definition of a "broadcast" under the Copyright Act and are therefore not covered by existing licenses granted to commercial radio networks.

The upshot of the ruling will help the PPCA create a new revenue stream from online license fees -- money that will inevitably come from both Internet radio stations and terrestrial radio stations that stream their broadcasts. COMMERCIAL RADIO AUSTRALIA (CRA), which represents the commercial radio industry in AUSTRALIA -- is expected to appeal the ruling to the High Court. Without a successful appeal, the PPCA will be able to demand fees above the present 1% regulated fee from any radio station that makes its broadcast stream available online.

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