[JPL] CRB Announces New Royalty Rate

Jean from FMC jean at futureofmusic.org
Wed Mar 7 17:21:18 EST 2007


Hi all -
More details on the new royalty rate:

The Copyright Royalty Board has announced new rates and terms that apply to
digital streaming of sound recordings over the internet.  The new rates
represent a steep increase over the rates that broadcasters previously paid
to stream their stations' broadcasts.  A good summary and analysis of the
ruling is here:

http://www.kurthanson.com/archive/news/030207/index.shtml

Highlights:

The new rates for commercial webcasters are:

$.0008 per performance for 2006
$.0011 per performance for 2007
$.0014 per performance for 2008
$.0018 per performance for 2009
$.0019 per performance for 2010

The transmission of a song to each listener is considered a performance.
Thus, transmitting one song to 500 people would be considered 500
performances.  It has been estimated that in the case of a commercial
webcaster with an average of 500 listeners at any moment, broadcasting 16
songs an hour, 24 hours a day, this would result in a payment of about $211
a day for 2007, annualized to $77,015 a year.  These rates are retroactive
through the beginning of 2006.

Noncommercial webcasters playing LESS than 159,140 aggregate tuning hours
per month (less than approximately 221 listeners in any given hour) are only
required to make the minimum $500 payment.

Note: these new rates apply only to the sound recording component of the
broadcast - that is to say, to the performer or record label.  Royalties for
the underlying musical compositions are collected by ASCAP, BMI and SESAC.
The current ASCAP and BMI licenses permit broadcast radio simulcasts from a
station's website.  SESAC requires a separate license.

There's some movement among webcasters and web radio fans protesting the
agreement, more information at: savethestreams.org and
saveourinternetradio.com.  I'm looking into other avenues besides
petitioning congress and will forward what I hear.

All the best,

Jean Cook
Future of Music Coalition
www.futureofmusic.org



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