Wow -- SoundExchange Does Something Reasonable, Says It Won't Enforce New Webcast Royalties Yet

from the now-here's-a-change dept

On Thursday, an appeals court denied a stay of the new (and significantly increased) royalty rates webcasters would have to pay to stream music online. However, as pointed out in the comments on that post, a Wired blog reports that SoundExchange says it's won't enforce the new rates as discussions/negotiations with webcasters continue. The founder of streaming service Pandora says that this development came about as a direct result of Congressional lobbying by webcasters and their listeners -- and hopefully those efforts will lead Congress to take a look at the proposed legislation that would establish much more realistic royalty rates. However, this shouldn't be seen as a victory for webcasters. It's not clear if the SoundExchange reprieve applies to webcasters that aren't part of the Copyright Royalty Board hearings, or what will happen if negotiations don't produce an acceptable outcome for SoundExchange and its RIAA friends -- a demand for retroactive payments would seem the most likely outcome. In any case, internet radio won't die Sunday night; hopefully the reprieve will give a reasonable solution a chance to surface.

Companies: soundexchange

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  1. identicon
    CharlieHorse, 13 Jul 2007 @ 7:03am

    it's just a matter of time

    what is happening is that the internet as a whole is encouraging free and open competition for products and services - it is the free-est of our markets currently - and this scares the bejeebers out of riaa companies 'cause they know that their business model sucks in the "internet age" and cannot compete on a level playing field. they will be buried by true marketplace competition, so they are lobbying hard to get (ala microsoft) congress to grant them monopoly-like status.

    as for soundexchange, they are only doing this in a thinly veiled attempt to head off likely congressional legislation which will tie their hands and force an equitable compormise.

    while I hate to see the "government" get involved in what is normally a free market issue (if we had a truly free market we wouldn't even be having this discussion), in this case I fully support the proposed legislation (Internet Radio Equality Act) as I don't believe that soundexchange will ever agree to anything reasonable - their goal is unquestionably to have total control (fiscally and programmatically) over all these stations and if the stations won't submit, then they will do everything to shut them down.

    so, please contact your legislators and urge them, respectfully, of course, to please support the Internet Radio Equality Act.

    *stepping down from soapbox now*

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