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OH SHIT! Then yay, a reprieve

 
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Liberia cjjeepercreeper
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PostPosted: Fri Jul 13, 2007 4:28 pm   Post subject: OH SHIT! Then yay, a reprieve Reply with quote


Public Outcry Staves Off Destruction of Internet Radio

internet radioThis Sunday, exorbitant new royalty rates for Internet radio outlets like Pandora and Yahoo are set to go into effect, a change that, many webcasters say, will force them out of business. Despite the industry’s Day of Silence protest and outpourings of support from the public and members of Congress – some of whom proposed the Internet Radio Equality Act, which would set the royalty rate at the same level currently paid by satellite radio (about 7.5 percent of revenue) until 2010 – the US District Court of Appeals denied an emergency stay petition that would have given the stations more time to negotiate a settlement.

It looked the music industry was continuing a long tradition of self-sabotage: In an effort to win higher royalties for artists, they would shut down a budding industry that has sparked interest from consumers and become a vital method of discovering new music.

But late yesterday, Jon Simson, director of SoundExchange – the label-affiliated organization responsible for setting royalty rates – told Congress that the group would not enforce the new royalty rates and would continue to work on negotiating new rates with the Digital Media Association (DiMA), who are acting on behalf of webcasters. “This is definitely a step in the right direction,” Pandora founder Tim Westergren, told us this morning. “At this point, provided there’s good-faith negotiations, they’re not going to go after people.”

According to insiders, negotiations are already making progress – the per-channel minimums that would have cost webcasters more a $1 billion a year are off the table – and it looks like, fingers crossed, this whole crisis could be averted before Pandora, Soma, WOXY or any other awesome web outlets are forced to shut down. Three cheers for those in the record industry who might’ve peeked their heads out of their asses on this one, to the webcasters for sparking a loud protest movement and, most of all, to Internet radio listeners for making their voices heard. “One million people called, faxed or emailed Congress since our Day of Silence,” says Westergren. “That’s what happened here: Public outcry equals Congressional pressure equals intervention.”
-- Evan Serpick

http://www.rollingstone.com/rockdaily/index.php/2007/07/13/public-outcry-staves-off-destruction-of-internet-radio/
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PostPosted: Fri Jul 13, 2007 5:20 pm   Post subject: Reply with quote


Thank you CJ for the news.

Time to hope that lords reach an agreement. That the wisdom be with them.
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PostPosted: Fri Jul 13, 2007 9:51 pm   Post subject: Reply with quote


FUCKIN AWESOME!!!!!! I'M GLAD US LITTLE GUYS WON FOR ONCE!!!
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PostPosted: Sat Jul 14, 2007 6:09 am   Post subject: Reply with quote


thanks for the info Smile
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PostPosted: Wed Jul 25, 2007 8:39 am   Post subject: Reply with quote


The newest on this angle:

More discord between music webcasters, recording industry
Linda Rosencrance


July 24, 2007 (Computerworld) Large music webcasters are claiming the recording industry is "backtracking" on its offer to compromise with them over new, higher royalty rates that went into effect in March and were to be paid on July 15.

The Digital Media Association (DiMA), which represents large webcasters such as Pandora.com and Yahoo Music, said the recording industry is demanding unrelated "technology mandates that are unreasonable, unworkable and way off-topic," before implementing the compromise.

In a statement, Jonathan Potter, DiMA's executive director, said the latest turn of events is "disappointing." A DiMA spokesman said Potter would not comment further.

The recording industry is being represented in the negotiations by SoundExchange Inc., a nonprofit organization set up by the Recording Industry Association of America to collect the so-called digital performance royalties for recording artists and record companies.

In an interview last week regarding the proposed compromise with the large webcasters, SoundExchange spokesman Richard Ades said his organization asked that large Internet radio broadcasters implement better anti-stream-ripping technology, which copies sound recordings in webcasts, and adopt better systems for reporting how much music is streamed. Ades said DiMA is well aware of the request, which was made at a recent roundtable discussion with members of Congress.

"This is just political posturing on their part," he said today.

Two weeks ago, SoundExchange agreed to cap the $500-per-channel fee for large webcasters at $50,000 per year, a figure that would last through 2010 or for the life of the new, higher rates.

In a separate deal, SoundExchange also offered to extend 1998-era below-market rates to small commercial webcasters, and to keep rates at 2003 levels for thousands of noncommercial webcasters. These small commercial and noncommercial groups are not involved in the latest feud.

SoundExchange has agreed not to collect the new royalty fees while all the parties are involved in negotiations.

In a volley of letters between SoundExchange and DiMA last week, each side accused the other of blocking the path to a compromise.

"I have reviewed your press release of this morning and I am compelled to respond to the Digital Media Association's (DiMA) pattern of misinformation, mischaracterization and political maneuvering at a time when we should all be focused on negotiating, as several members of Congress have urged," SoundExchange Executive Director John Simson said in a letter sent to DiMA and e-mailed to Computerworld. "Your comments over the weekend and this morning are, at best, disingenuous. SoundExchange is not 'backtracking' on its offer from the roundtable. Rather, you are intentionally mischaracterizing our proposal."

The new rates were set by the Copyright Royalty Board (CRB) of the Library of Congress in early March and went into effect May 1, retroactive to the start of last year. The rate increase would at least triple the amount of royalties Internet radio broadcasters must pay to copyright holders per song, and it has been challenged by webcasters, Internet radio listeners and more than 6,000 artists over the past several months.

A number of U.S. legislators have been trying to broker a deal among the sides.

Several weeks ago, a federal appeals court denied a petition from music webcaster associations for an emergency stay of the royalty rates.

Despite the harsh words, both DiMA and SoundExchange say they are willing to continue negotiations.

http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9027820&source=NLT_PM&nlid=8
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