After a flurry of renegotiations, arguments, Congressional wrist-slapping, and a lot of steam blowing, webcasting's D-Day (July 15) has passed. A low fog still hangs, and for many webcasters, the future is still up in question.

Late last week, as the new webcasting royalty fee schedule approached, outcry from webcasters, the listening public, and Congress sparked another round of negotiations with SoundExchange, the company that collects and distributes webcasting royalties. The minimum per-channel fee that threatened services like Pandora, Live365, and Rhapsody was rescinded. SoundExchange also promised not to take immediate legal action against webcasters who were still in negotiations. But in the meantime, the threat of large looming royalty payments has silenced some small webcasters.

Although NPR's request for a court-ordered stay on the new rates was denied, they have filed a formal court appeal, but hearings may not happen for another year or two. On Thursday, members of Congress introduced a bill postponing the new webcasting rates for another 60 days, but this failed to pass in time for the July 15 deadline.

So what does this mean for WFMU? While the details of SoundExchange's new webcasting rates for non-commercial stations are still unclear, WFMU will continue streaming. We hope that NPR and SoundExchange continue negotiating fair terms for public stations in the coming weeks. If that falls through, there's always the possibility of Congressional intervention (the Internet Radio Equality Act, more info at savenetradio.org), or an appeals hearing in the distant future. With luck, WFMU won't ever have to place a cap on our online audience.

- bill 7-18-2007 12:28 am

from wired:

SoundExchange, a group responsible for collecting music broadcasting royalties, on Friday confirmed it has proposed new terms for internet radio that could lower fees for some webcasters.
While limited in scope, Thursday's proposal offers a partial reprieve for smaller sites facing the axe Sunday when a payment scheme approved by the Copyright Royalty Board, or CRB, is set to take effect. Webcasters have said the fees would effectively force many services that personalize individual channels for listeners to close shop by the end of the weekend.
Under the new proposal, which must be implemented by the CRB, SoundExchange would cap the $500 annual per-channel minimum fee at $50,000 per year for webcasters. In exchange, webcasters could be required to provide more detailed data on the music that they play and make an effort to stop unauthorized copying from streamrippers -- software that can turn ephemeral net radio streams into permanent recordings.

- bill 7-18-2007 1:51 am [add a comment]





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