Monday, March 5, 2007

U.S.Copyright Royalty Board and Small Webcasters

This is a repost of comments made by Monty, Marketing Manager of, after articles published over the weekend about the proposed new Performance Royalty Rates for Webcasters:

Posted: Mon Mar 05, 2007 1:32 am Post subject: New Internet Radio Royalty Rates & Live365

Despite all the arguments made by the Internet radio industry, e.g. Live365’s CEO Mark Lam’s testimony last April at a Senate Judiciary Committee hearing on digital radio urging the Committee to help create a level competitive playing field for broadcast, cable, satellite and Internet radio (go here for video and written versions of his testimony:, the Copyright Royalty Board (CRB) has reportedly adopted the new per performance royalty rates put forth by SoundExchange.

It was reported that the new per performance royalty rates for the years from 2006 through 2010 would be $0.0008, $0.0011, $0.0014, $0.0018, and $0.0019, respectively, representing an increase over the existing rate ($0.000762) of 5%, 44%, 84%, 136%, and 149%, respectively, and a year-over-year increase of 5%, 38%, 27%, 29%, and 6%, respectively.

This would undoubtedly impose a grave challenge to the development of Internet radio. From the moment the news broke—and even in the months leading up to the CRB's decision, Live365 has been proactively working on resolving any possible negative effects of the potential royalty rates change, on behalf of our broadcasters and listeners and in cooperation with other DiMA (the Digital Media Association) members and the Internet radio industry at large.

In the days and months to come, Live365 expects to take a series of measures to combat the challenges imposed by the new royalty rates. We will keep you posted of the progress. Before the CRB and Live365 make any formal announcements, however, we ask you to please stay calm and refrain from passing any false speculations and premature judgments.

In the meantime, you may want to contact your local Congressmen and Congresswomen. Make your voice heard by the lawmakers on Capitol Hill.
Marketing Manager, Live365

These rates would apply to ALL recordings played, not just Major Label Artists. This increase of rates would close down all but a few individually-wealthy Webcasters & the AOLs & Yahoo!s. Webcasting is the last chance for regular folks (from all over the world) to provide what all the Clear Channels & other mega-media companies will not give you: individual voices, both in choice of music & the creators of that music. If you live in the United States, contact your House & Senate members & let them know how you feel.


More background on this decision

Broadcasters Go Here and join the cause

Thx to my Sister-in-Arms Red, Monty & all the hard-workin' folks at, you Beautiful Listeners, & all the Legally Webcasting Individuals, putting our hearts into the Music we love. We shall fight the Good Fight...and Win!!
Love & Peace, Clarence

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