One reason they should be exempt: BMI and ASCAP reports for over-the-air broadcasts.
But since Jan 1 of this year, SoundExchange has required even more information for web streamers--even more than before, and retroactive to Jan 1, 2006 (the rules of the Copyright Board are dated October 6, 2006). The information is far beyond merely artist, title, label and the requirements of the past. It also requires a digital database, searchable and submitted by SoundExchange, plus the fee. These cataloguing requirements are far beyond that done for over-the-air broadcasts--and cannot be remedied by licensing through Live365 or other streaming portals.
And that's not the only thing--the rates charged are contingent upon all of that above information, whereas before, there was a flat fee for broadcast stations that streamed.
Now, I am more concerned with the fact that commercial broadcasters were able to get a set fee, while non-comms have been forced to comply with onerous reporting requirements while not being offered the same deal.
The new requirements for non-comms are as follows (from SoundExchange's website):
Reporting Requirements
Pursuant to the Copyright Act, all services are required to submit reports detailing the sound recordings transmitted by them. On October 6, 2006 the Copyright Royalty Board issued an Interim Final Rule establishing regulations on how statutory webcasters are to deliver reports of use to SoundExchange. See 71 Fed. Reg. 59010 (Oct.6, 2006); available at
http://www.loc.gov/crb/fedreg/2006/71fr59010-9.pdf. The regulations require digital music services to provide SoundExchange with detailed reports on the use of sound recordings for two weeks every calendar quarter, retroactive to the 2nd quarter of 2004 (Apr-Jun). The reports of use are to include specific identifying information that will enable SoundExchange to distribute royalties to those copyright owners and performers entitled to such royalties. The information music services are required to report is as follows:
name of the service making transmissions;
identification of the transmission category from one of eleven choices;
name of the featured artist;
sound recording title;
album title and marketing label OR International Standard Recording Code ("ISRC"); and
aggregate tuning hours, channel or program name, and play frequency OR actual total performances.
These reports of use must be in a standardized, electronic format (ASCII), and may be delivered to SoundExchange via electronic mail (e-mail), File Transfer Protocol (FTP), CD-ROM, or floppy diskette. Hard copy reports of use are not permitted.
All eligible nonsubscription transmission services must provide reports of use as required in 37 C.F.R., Part 370. For SoundExchange's guide on how services should deliver Reports of Use of Sound Recordings, click here.
For a copy of the Microsoft Excel template to be used for creating a Report of Use, click here.
For examples on where you may locate the data elements identifying particular sound recordings required to be reported under Copyright Office regulations, click here.
Has your internet licensee provided you with these new rules? And are they requiring compliance?