Fight For Internet Radio Heats Up — is it too late?
With only a few days left until the July 15 deadline, the battle for Internet radio is running out of time. According to multiple reports, the U.S. Court of Appeals for the D.C. Circuit has denied a “motion to stay” by webcasters for the impending royalty rate hike. An appeal was filed in May, along with the motion to place a hold on the Copyright Royalty Board’s decision. However, the court made a brief announcement yesterday, stating the parties did not meet the standards required for a stay to be granted.
“We are pleased by this decision, which vividly demonstrates that the Copyright Royalty Judges got it right when they set royalty rates and terms for the use of music on Internet radio,” said John Simson, Executive Director of SoundExchange, in a statement. “This is a major victory for recording artists and record labels whose hard work and creativity provides the music around which the Internet radio business is built. Notwithstanding this victory, we continue to reach out to the webcasting community to reach business solutions.” more
A coalition of webcasters have worked out a deal with the recording industry that could temporarily stave off a portion of crippling net radio royalties set to take effect Sunday, according to people familiar with the negotiations.
The deal is not final but creates a window for webcasters to continue broadcasting while a more lasting solution is sought. 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.
For now, the parties involved in what’s described as ongoing negotiations have agreed to waive at least temporarily the minimum charge of $6,000 per channel required under a scheme created by the Copyright Royalty Board, or CRB.
The deal, brokered late Thursday, is not final and could change. One person involved in the talks described the situation as a reprieve, and said that “internet radio won’t be saved until a workable royalty rate is set.”
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