Intellectual "Property" in the Digital Age
Frank Field
Links Home : IP Controversies : Digital Music : Webcasting : Royalties, V2

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-REC Big name microcasters pull the plug
[7 hits, 0 votes, Average Rating 0] [Added: 22nd Jun 2002]

The Register; Andrew Orlowski; June 21, 2002. Also see Net radio going off the air
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-REC Cuban says Yahoo!'s RIAA deal was designed to stifle competition
[8 hits, 0 votes, Average Rating 0] [Added: 25th Jun 2002]

Radio and Internet Newsletter; June 24, 2002. An interview with Mark Cuban, suggesting the underlying rationale for the current royalty system is based on a hidden premise.

The voluntary royalty deal between Yahoo! and the RIAA that the Librarian of Congress announced as his template for the entire industry last week was a deal crafted by Yahoo! to shut out small webcasters and decrease competition, founder and Dallas Mavericks owner Mark Cuban revealed to RAIN on Friday.

San Jose Mercury News; Dawn Chmielewski; June 27, 2002 - another article, Webcasting pioneer: Royalty rates set high to cut competition
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-REC Determination of Reasonable Rates and Terms for the Digital Performance of Sound... Final Rule
[17 hits, 0 votes, Average Rating 0] [Added: 8th Jul 2002]

Federal Register, V67, N130.; July 8, 2002.


Copyright Office

37 CFR Part 261

[Docket No. 2000-9 CARP DTRA 1&2]

Determination of Reasonable Rates and Terms for the Digital Performance of Sound Recordings and Ephemeral Recordings

AGENCY: Copyright Office, Library of Congress.

ACTION: Final rule and order.

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-REC Isn't the Market a Wonderful Thing?
[3 hits, 0 votes, Average Rating 0] [Added: 8th Jul 2002]

Doc Searls Weblog; July 8, 2002. A look at a couple webcasting tools that have arisen in response to the recent royalty rates.
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-REC Yahoo cuts some broadcast services
[7 hits, 0 votes, Average Rating 0] [Added: 26th Jun 2002]

CNet News; Jim Hu; June 26, 2002. Wait a minute! Wasn't the Yahoo deal supposed to be the standard-setter for the new royalty rates??

The closure of Yahoo Radio comes after a closely watched ruling last week from the Librarian of Congress on Webcasting royalty rates. The ruling has been widely criticized by small Webcasters, many of which say it is too high and will force them to close.

Sohn said Yahoo Radio, which served as an aggregation point for offline radio stations, was unaffected by the royalty rate decision.

Some aren't convinced: Yahoo Reaps What It Sowed
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-Feds cut Webcasters a break on fees
[6 hits, 0 votes, Average Rating 0] [Added: 21st Jun 2002]

CNet News; John Borland; June 20, 2002.

Federal copyright regulators on Thursday set new royalty rates for online radio companies, halving previously proposed fees that had drawn bitter criticism from Net companies.

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-Internet Radio Criticizes Rate on Royalties
[6 hits, 0 votes, Average Rating 0] [Added: 21st Jun 2002]

New York Times; Amy Harmon; June 21, 2002.

The deal was seen as a necessary trade-off by an industry with little influence, even though conventional radio broadcasters have never paid a royalty for using sound recordings because of the promotional value to record labels of having their songs played over the air. Like broadcast radio stations, Webcasters also pay about 4 percent of their revenue to compensate composers and music publishers.

But the record labels and Internet companies failed to agree to a rate, and the task was handed to an arbitration panel appointed by the Copyright Office last summer. Since many companies had declined to negotiate with the recording industry, its conclusions on a fair rate were based largely on one major deal between Yahoo and the industry's trade association.

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-Summary of the Determination of the Librarian of Congress on Rates and Terms for Webcasting....
[7 hits, 0 votes, Average Rating 0] [Added: 21st Jun 2002]

US Copyright Office;
Full title: "Summary of the Determination of the Librarian of Congress on Rates and Terms for Webcasting and Ephemeral Recordings" Slashdot discussion with links to other news items: Copyright Office Publishes Final Webcasting Rates - kuro5hin also has one: RIAA kills US-based Internet radio
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-They Got What They Wanted, Will They Lose What They Had?
[7 hits, 0 votes, Average Rating 0] [Added: 27th Jun 2002]

CounterPunch; Dave Marsh; June 25, 2002.

Just as broadcast "deregulation" virtually wiped out small radio stations, the LoC's new rates ensure that webcast survivors will belong to very wealthy companies who can afford them. Clearly, that's now government policy, summed up by the LoC's rationalization: "...many Webcasters are currently generating very little revenue, [so] a percentage-of-revenue rate would require copyright owners to allow extensive use of their property with little or no compensation." As I've pointed out many times, protecting "copyright owners" means protecting big business, not artists. That the Librarian of Congress views songs solely as property, discarding their status as culture, is even more appalling.

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-Web radio royalty rate for songs criticized
[7 hits, 0 votes, Average Rating 0] [Added: 22nd Jun 2002]

SFGate; Benny Evangelista; June 21, 2002.

In a decision criticized by both Webcasters and the recording industry, a government official Thursday ruled that Internet radio stations must pay royalty rates that are 50 percent less than proposed by a federal panel.

Librarian of Congress James H. Billington has ruled that all Webcasters will have to pay 0.07 cents per song per performance, compared with the 0.14 cents per song per performance recommended by a federal arbitration panel in February.

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-Webcasters' Fees Slashed in Half
[7 hits, 0 votes, Average Rating 0] [Added: 21st Jun 2002]; Brad King; June 20, 2002.

The new rates , issued by Librarian of Congress James Billington, require webcasters to pay record labels .07 cents each time a song is streamed live and .02 cents for archived or simulcasted streams. Temporary copies, such as ripped copies of CDs that are used to create the digital streams, will cost companies 8.8 percent of their entire royalty fee.

The rates, while lower than previous recommendations, did little to soothe webcasters who continue to claim that such high rates will force fees that can't be recouped.

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