Royalty Changes Coming For Web Radio
A federal panel charged with determining music royalty rates proposed changes Tuesday that would alter reporting requirements for services that pay fees for the use of sound recordings to SoundExchange, an entity that collects and distributes money owed to the music industry. The proposed new rules by the Copyright Royalty Board would require that "reports of use" submitted by certain services contain "full census reporting" of all songs played. Among those affected include Internet radio, satellite radio, digital cable radio and others, according to telecom attorney David Oxenford. The current system only requires reporting for two weeks each quarter.
"Where this change is likely to have the most impact is in connection with the operations of broadcasters who also stream their programs on the Internet," Oxenford said on his Broadcast Law Blog. "Noncommercial broadcasters, such as college radio stations, have repeatedly complained that their small staffs do not have the ability to maintain these electronic records, especially where the stations are volunteer-programmed by DJs who select their own music on the spot," he said. Oxenford represented small webcasters in a controversial recent proceeding on Internet royalties, which got the attention of consumer groups and members of Congress.
Comments on the proposal (which can be viewed here) are due by Jan. 29, 2009.
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