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Web Radio Royalty Rates To Get Revisted


By: Spacelab Research Staff
After an initial freak out over the new royalty rates set for web radio stations recently, the Copyright Royalty Board has agreed to revisit the issue with a new hearing for SoundExchange and the groups representing the web radio faction.

The board is responding to groups like Digital Media Alliance, National Public Radio, and Clear Channel after quick momentum generated in reponse to the new rates. The Digital Media Alliance includes AOL, Yahoo, Microsoft, and Live365.

SoundExchange is the group that suggested the rates, and all of the money would be paid to SoundExchange, who acts as a middleman and works the payments to all of its repective parties. SoundExchange thinks the rates are fare, as told by a recent statement Executive Director John Simson.

""Recent claims by a few webcasters that the process was unfair simply reveal that their complaints are not really about process, but rather about results. Webcasters like AOL, Clear Channel, and others want to impose low rates on artists, rather than accept fair market rates as the law requires. They may disagree with the ruling, but they should be forthcoming about the integrity of the process."

That runs completely against what most web radio stations say is a royalty structure that would quickly force them to shut down. Hmmm... I'll ask a leading question here - what good are royalty rates when it forces those that pay them to go out of business and not pay them anymore? Could this be one part of a much larger picture?

So the battle moves to it's next phase: response. The new hearing could leave the rates unchanged, or possibly lower them.


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