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From the Washington Post: "A new royalty payment
deal struck between record companies and big Internet radio operators
does little to address the plight of many small webcasters, who
said they will continue trying to change a payment structure that
threatens to put them out of business.
"The deal made last week between the Recording
Industry Association of America and the Digital Media Association
(DiMA)
[in RAIN here
and here],
would require large webcasters to pay a little more than $0.0007
per song per listener, or $0.012 per hour, per listener, whichever
is less. It requires approval from the US
Copyright Office, and would be valid for 2003 and 2004.
"Small webcasters operate under a separate, congressionally
brokered agreement that makes them pay a fraction of their revenues
to the entertainment industry [the Small
Webcasters Settlement Act, in RAIN here].
Many of them complain that they still cannot afford to pay the royalties
that they do owe...
"'It's clearly a step in the right direction for larger webcasters
[but] I don't think it does anything for smaller webcasters,' said
David LeGrand, who represents
the Las Vegas-based Webcaster
Alliance. 'We're going to keep fighting for a graduated
payment that allows the smaller webcasters to continue [operating].'..
"The royalty rate that DiMA agreed to pay to the recording
industry is costly, but the agreement goes straight to the Copyright
Office for its consideration. A disagreement would have been more
expensive and time-consuming. If the two sides had reached an impasse,
the Copyright Office would have mandated a 'Copyright Arbitration
Royalty Panel' -- or CARP --
to settle on a royalty
rate that could have been even worse...
"Many experts close to the online radio royalty debate
say that the arbitration process eventually will be scrapped in
favor of another system, but they also say that the ranks of small
commercial webcasters will thin out significantly by then."
Read this article from yesterday's Washington Post
online here.
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If
you're in Las Vegas for NAB 2003 (details here),
we hope you'll join us for our RAIN reader get-togther.
We've reserved the patio of the Gordon Biersch Brewery Restaurant
(about a $6 cab ride from the Convention Center) today, April
8th.
This year, we've also reserved a private room for the U.S.
debut of Kurt's "The Future of
Radio" speech for those who'd like an advance
look at it. (Please note we've moved the time up a bit from
its original scheduling. The presentation will be today at 4:30pm,
and cocktails at 5:00pm.) See
you there!
Feel free to call Kurt on his cell phone for more information:
773-354-KURT. |
| The
RAIN Reader Cocktail Party at NAB 2003 is co-sponsored
by BRS Media, Custom Channels.net, Limelight Networks,
RadioWebStuff, StreamGuys, InvisibleHand Networks,
and RCS. Make plans to meet representatives of those
firms at the event! |
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