Intellectual "Property" in the Digital Age
Frank Field
Links Home : IP Controversies : Digital Music : Webcasting : Royalties, V1

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-REC CARP Put to Death, but DMCA Is still Sleeping
[11 hits, 0 votes, Average Rating 0] [Added: 23rd May 2002]

LinuxJournal; Doc Searls; May 22, 2002. An entertaining and exhaustive review of the CARP webcasting royalty controversy to date.
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-REC Copyright Office Rejects CARP Recommendations
[10 hits, 0 votes, Average Rating 0] [Added: 21st May 2002]; May 21, 2002. Discussion of the rejection of the CARP proposal - links, etc.
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-REC In the Matter of Digital Performance in Sound Recordings and Ephemeral Recordings; May 21, 2002
[9 hits, 0 votes, Average Rating 0] [Added: 21st May 2002]

Library of Congress; May 21, 2002. The text of the order rejecting the CARP webcasting royalties.
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-REC Proposed Rates and Terms for...Webcasting
[11 hits, 0 votes, Average Rating 0] [Added: 21st Feb 2002]

U.S. Copyright Office; February 21, 2002. Here are the proposed rates and terms. Full title of the document: Reates and Terms for Statutory License For Eligible Nonsubscription Service to Perform Sound Recordings Publicly by Means of Digital Audio Transmissions ("Webcasting") and to Make Ephemeral Recordings of Sound Recordings. According to this Slashdot discussion, Copyright Office Proposes Webcasting Regs, some (links provided) see the terms as overly burdensome.'s Brad King doesn't see that it's quite that bad: Webcasters Learn Cost of Music
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-REC Small Webcasters Fear Royalties
[7 hits, 0 votes, Average Rating 0] [Added: 2nd May 2002]

New York Times; AP Wire; May 1, 2002.

"Webcasters and over-the-air radio stations already pay composers and music publishers royalties for the music they play, based typically on a percentage of their revenues.

But traditional radio broadcasters have been exempt from paying the royalties now being applied to webcasters -- because lawmakers bought the argument that radio stations were promoting the music already.

The new royalties, which would go to music labels and musicians, had long been sought unsuccessfully by the recording industry from traditional broadcasters. So the industry turned to webcasters and got its wish in a 1998 law."

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-REC Web radio's last stand
[9 hits, 0 votes, Average Rating 0] [Added: 26th Mar 2002]; Katharine Mieszkowski; March 26, 2002. "A new ruling involving the Digital Millennium Copyright Act is set to wipe out independent online music stations." A Q&A with a webcaster about the economics of the CARP proposal. A Slashdot discussion: Can Internet Radio Survive?
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-REC Webcast Royalty Rates Rejected
[12 hits, 0 votes, Average Rating 0] [Added: 21st May 2002]

Wired; Kendra Mayfield; May 21, 2002. "Although it's uncertain whether the Copyright Office will set a royalty rate that will guarantee a healthy Internet radio industry, webcasters say that Tuesday's decision is a step in the right direction." OTOH, the RIAA is quoted as saying "The librarian has rejected the arbitration panel's determination, but we do not know why or what decision the librarian will ultimately make based on the evidence presented.... We look forward to the conclusion of this process on June 20, and to the day when artists and labels finally get paid for the use of their music."
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-Arbitration Panel to Rule on Internet Radio Royalties
[8 hits, 0 votes, Average Rating 0] [Added: 20th Feb 2002]

New York Times; Bob Tedeschi; February 18, 2002. Maybe this block on the business will finally be lifted.....
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-Copyright Panel Splits Differences On Fees For Internet Radio
[7 hits, 0 votes, Average Rating 0] [Added: 21st Feb 2002]

Newsbytes; Steven Bonisteel; February 20, 2002. More on the strategic positions of the various players.
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-Net radio sends out distress signals
[6 hits, 0 votes, Average Rating 0] [Added: 2nd Apr 2002]

ZDNet News; John Borland; April 1, 2002. " These royalty fees, slated to be split between artists and record companies, are new to the business of radio. Ordinary, over-the-airwaves stations pay small royalties to songwriters and music publishers, but they have successfully lobbied over the years to avoid the new fees. Then in 1998, after a fierce political struggle between record labels and Internet companies, Congress dictated that online radio would be subject to the fees.
.... Negotiations over the actual rates for the new royalties proved bitter, ultimately winding up in front of the U.S. Copyright Office's arbitration panel. Record labels proposed a per-song rate that was about 100 times what the big Webcasters' trade association--led by companies such as America Online, MTV and RealNetworks--said was feasible. The arbitration panels' proposed rates split that difference. "
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-Proposed royalty rates could bankrupt Webcasters
[7 hits, 2 votes, Average Rating 4.00] [Added: 24th Mar 2002]

San Jose Mercury News; Dawn Chmielewski; March 23, 2002.
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-Royalties Proposal Casts Shadow Over Webcasters
[5 hits, 0 votes, Average Rating 0] [Added: 1st Apr 2002]

New York Times; Amy Harmon; April 1, 2002. " The proposed royalties, which the copyright office has until May 21 to revise or approve, have radically dimmed the prospects for the legions of entrepreneurs and hobbyists whose radio stations from to Radio Margaritaville have for the last two years provided free access to a startlingly wide range of music. Last week, lawyers for the Webcasters and the recording industry submitted their final comments to the copyright office, with the record labels urging the agency to increase the rate and the Webcasters pleading for a lower alternative.
... In a 1998 copyright law, Congress gave Webcasters an automatic license to stream copyrighted music so long as they paid a royalty fee to be agreed on later. Like broadcast radio stations, Webcasters already pay about 4 percent of their revenue to compensate composers and music publishers. But American broadcasters have never paid a royalty for using sound recordings, which are typically owned by a record label, successfully arguing that record labels are already compensated by the promotional benefits of having their music played over the air."
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-Royalty rate set for webcasts
[7 hits, 0 votes, Average Rating 0] [Added: 21st Feb 2002]; Dawn Chmielewski; February 21, 2002. Another analysis of the CARP's proposed webcasting fees....
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-Static over Net radio
[11 hits, 0 votes, Average Rating 0] [Added: 20th May 2002]

SFGate; Benny Evangelista; May 19, 2002. Don Henly is quated: '"If a Webcaster can survive only by paying the recording artists a nominal or relatively nonexistent royalty, then perhaps the Webcasters' business model is not viable," Henley said in a statement released during a hearing last week in Washington, D.C.' A good overview of the state of the controversy.
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-Why Internet radio may fade
[13 hits, 0 votes, Average Rating 0] [Added: 18th Jun 2002]

Christian Science Monitor; Jim Turner; June 17, 2002. EFF DMCA blog entry

"Our performance rights in this country are more limited than they are in most other modern countries around the world," says John Simson, executive director of Sound Exchange, which manages the distribution of digital performance royalties for artists and record labels. "We only have digital cable and satellite rights, we don't have terrestrial radio or television rights, unlike most of the other countries. It's an inequity in US law and it's finally been corrected, at least in some small part."

...But those representing the recording industry argue that this is beside the point. "It's not really our job to figure out their business model, that's their job," says Mr. Simson. "We've just asked that we be paid fair market value for our service."

Simson adds that if the smaller broadcasters believe that the proposed royalties would drive them out of business, it may be because they were poorly represented on the panel. Larger players like MTV and Yahoo! had greater influence on the panel. They favor per-play royalty rates.

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-Zittrain's Prepared Testimony before CARP
[6 hits, 0 votes, Average Rating 0] [Added: 3rd Apr 2002]

Berkman Center; Jonathan Zittrain; October 18, 2001
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-Zittrain's Reponse Testimony before CARP
[5 hits, 0 votes, Average Rating 0] [Added: 3rd Apr 2002]

Berkman Center; Jonathan Zittrain; October 18, 2001.
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