Breaking news from Wired.com:
http://blog.wired.com/music/2007/07/breaking-news-o.html
At today's Congressional hearing about the new rates for online radio that would essentially destroy it... SoundExchange, which was scheduled to receive the new royalty payments on Monday morning (since the enforcement date falls on a Sunday), made a startling statement. The SoundExchange executive promised -- in front of Congress -- that SoundExchange will not enforce the new royalty rates. Webcasters will stay online, as new rates are hammered out...
As for the Copyright Royalty Board? They're entirely cut out of the process, having set the rates and then refused a rehearing. Going forward without the royalties being collected, SoundExchange and webcasters will negotiate a new royalty rate with Congress looking over their shoulder -- "and last but not least, the public looking over Congress's shoulder." Alternatively, Congress now has time to consider the Internet Radio Equality Act, which would set webcaster royalties at 7.5 percent of revenue and allow them to continue operating pretty much as they have been. Either way, this is a big win for webcasters and their listeners.
Props to Congress to cleaning up a mess they effectively created. And hopefully the new rate that is "hammered out" will be agreeable to all parties. Any idea when that time will actually come? And for how long will the rates hold up?
http://blog.wired.com/music/2007/07/breaking-news-o.html
At today's Congressional hearing about the new rates for online radio that would essentially destroy it... SoundExchange, which was scheduled to receive the new royalty payments on Monday morning (since the enforcement date falls on a Sunday), made a startling statement. The SoundExchange executive promised -- in front of Congress -- that SoundExchange will not enforce the new royalty rates. Webcasters will stay online, as new rates are hammered out...
As for the Copyright Royalty Board? They're entirely cut out of the process, having set the rates and then refused a rehearing. Going forward without the royalties being collected, SoundExchange and webcasters will negotiate a new royalty rate with Congress looking over their shoulder -- "and last but not least, the public looking over Congress's shoulder." Alternatively, Congress now has time to consider the Internet Radio Equality Act, which would set webcaster royalties at 7.5 percent of revenue and allow them to continue operating pretty much as they have been. Either way, this is a big win for webcasters and their listeners.
Props to Congress to cleaning up a mess they effectively created. And hopefully the new rate that is "hammered out" will be agreeable to all parties. Any idea when that time will actually come? And for how long will the rates hold up?
