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CRB coverage 2007:
CRB decision
SaveTheStreams
Legal options
Markey
Petitions
Copyright law
Canada?
Fred Wilhelms
[2] [3]
JPMorgan analyst
SaveNetRadio
Rehearing denied
SNR.org website
B'casters interests
Day of Silence?
What is "fair"?
House IREA
SX Point/Counter
July 15th D-Day
Hill walk recap
Senate IREA
Hanson/Simson
Offer to SCW
Berman/Coble
100th co-sponsor
File for stay
Noncomm offer
$1 bil admin cost


CRB coverage 2002:
CARP decision
Industry reacts
Industry stunned
Huge RIAA win
SJO editorial
Day of Silence?
Congress support
Day of Silence on!
Press coverage
Day of Silence
Librarian decision
Cuban speaks up
Labels: Die Now!
Forbes coverage
SWSA
SCW license


"The Future of
   Radio" series
1 | 2 | 3 | 4 | 5

"Net radio frontier:
Ad sales" series
1 | 2 | 3 | 4 | 5

UPDATED:
Internet radio
royalty basics


Copyright Law
DMCA
CRB 2007
 Webcast decision







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We'll send you a brief daily summary of each day's stories with a clickable link to the RAIN home page.

 

 

CRB update
Webcasters converging on WDC
BY DANIEL MCSWAIN
On Monday (4/30), a large group of webcasters, artists, and independent record label executives will converge on Washington D.C. to prepare to petition members of Congress on Tuesday in support of the Internet Radio Equality Act (H.R. 2060).

savenetradioParticipants in Tuesday's "Hill walk," organized by the SaveNetRadio coalition, will visit dozens of House and Senate offices to deliver webcasters' message. They will explain to Congressmen and their staffers why Internet radio is at risk of folding on May 15th if there is not Congressional action to reverse the flawed royalty process established by Congress in the 1998 Digitial Millenium Copyright Act (DMCA).

The entire RAIN staff — Kurt, Paul, Dan, and Ralph — is headed to Washington today to participate in and cover the event. We'll have a full first-hand report in Wednesday's issue of RAIN.

 

CRB update
SoundExchange tries PR tack
BY KURT HANSON AND PAUL MALONEY
Friday morning
, in response to the announced introduction of the Internet Radio Equality Act (see RAIN here), SoundExchange issued a press release (here, in .pdf format) claiming the bill would force artists to "write sxchecks to cover refunds to corporations whose CEOs and top executives are paid millions of dollars per year."

SoundExchange is the RIAA-created royalty collection agency whose webcast royalty proposals were accepted and used by the CRB for the Internet radio industry.

Executive director of SoundExchange, John Simson, and the collection agency's General Counsel, Mike Huppe, offer several colorful yet easily-refutable quotes in the press release. Here are a few quotes, and our responses:

SoundExchange press release Webcasters' counterpoint
. .
"Artists would have to write checks to cover refunds to corporations whose CEOs and top executives are paid millions of dollars per year." This is ludicrous! No one has suggested that checks already written to musicians would have to be recalled. (Furthermore, come on! There are a lot more highly-paid CEOs and top executives and superstar musicians in the music industry, on the SoundExchange side, than there are in the world of Internet radio.)
. .
"The bill would also result in a windfall of more than $50 million to mega-corporate webcasters like Clear Channel and Microsoft..."

No $50 million windfall exists; it's imaginary. It's money that SoundExchange hopes to see but never will, since, If the CRB royalty rate decision stands, most webcasters will most likely pull their streams down.

Microsoft, incidentally, is no longer a webcaster at all; they now offer a white-label version of Pandora, a service that would be bankrupted by the CRB decision.

. .
"This bill, introduced by Representatives Jay Inslee (D-WA) and Donald Mazullo (R-IL), would arbitrarily reverse the painstaking work of the CRB, the three-judge panel created at the request of the webcasters three years ago."

This is deceptively-worded. The only minor change that webcasters requested three years ago was to change from a three-arbitrator panel (indepdendent contractors to the Copyright Office) to a three-judge panel (salaried employees of the Copyright Office), under the theory that judges would be more experienced in copyright law.

Unfortunately, this was the three-judge panel's first case, so they were as equally inexperienced as one-time-only arbitrators would have been.

In any event, all of the "painstaking" work on both sides was based building a case for a flawed standard ("willing buyer / willing seller") which does not even pretend to balance the needs of copyright owners, copyright users, and the general public. And the language of that standard was created at the request of the RIAA when the DMCA was written in 1998.

. .
"The CRB panel listened exhaustively for 18 months to all interested parties, heard from dozens of witnesses in weeks of live hearings, read countless depositions and examined tens of thousands of pages of evidence focused on, among other things, the services’ ability to pay and the value of music in the marketplace. .It was a daunting and wildly-expensive process, yes. But the judges' decision was that based on their position that since Congress had set "willing buyer / willing seller" as the standard they were to use, the services' ability to pay was irrelevant.
. .
"The CRB... fulfilled the intent of Congress to issue appropriate market-based rates for webcasters." The experience with the CARP five years ago and the CRB now has taught us that the "willing buyer / willing seller" verbiage in the DMCA, which has lead to decisions based on dueling economists' hypotheses, has not lead the judges or arbitrators to an actual, real-world, sustainable market-based rate.
. .
"The proposed bill presents no factual or economic basis for rejecting the reasoned decision of the CRB."

Subcommittee hearings, not the language of the bill itself, are the proper venue for describing the economic basis behind the bill.

But the factual and economic basis has alrady been made clear in the press -- the fact that the royalty is currently the equivalent of 80% to 300% of revenues for most webcasters (i.e., once other expenses are taken into account, a bankruptcy rate), compared to the 0% royalty the broadcast radio pays and the 7.5% royalty that satellite radio pays).

. .
"This legislation, if passed, would come at the expense of hard-working artists, who, on average, received just $360 each in royalties from webcasting in 2006."

SoundExchange fails to mention the multi-million-dollar royalty checks they are trying to obtain for the big four record labels, using the cover of "hard-working artists" as their PR stance.

Furthermore, that $360 average is deceptive -- it's an average that includes both (A) largrer royalty checks to superstar artists and (B) checks that are probably more in the ballpark of $120/year to the artists that you and I would think of as "working musicians."

Those working musicans, as shown by the tens of thousands who've signed up for the SaveNetRadio Coalition, would rather have a thriving world of Internet radio airplay than the potential chance of a $10/month check.

 




Have an opinion? Drop us a note! (Or, to use your own e-mail software, click here.)

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    Kurt and Paul, this is deep background -- don't quote me!

        Thanks!

 

We'll send you a brief daily summary of each day's stories with a clickable link to the RAIN home page.
 
 


More and more webcasters
are signing on to our proposed "Day of Silence" taking place Tuesday, May 8 [read full details in RAIN here]. We're getting more webcasters joining every day — if you've e-mailed us, we'll add your name soon. Below is a growing list of webcasts that have agreed to go "dark" for the day.

MusicTampaBay.com will off-line May 8th. Hopefully this will be the only day MTB has to go silent.
ThereIsNoRadio will be participating in the "Day of Silence". All of our talk show hosts are recording PSA's explaining the situation and directing listeners to savenetradio.org. These PSA's will be the only thing heard on the station and each will be followed by 20-30 seconds of silence.

Count on our full support for a "Day of Silence." We will shut down our streams on May 8th, and our listeners will hear the silence loud and clear. -- ClubNetRadio.com

Organlive.com is in.

Wind Band FM and SLT Radio fully support the "Day of Silence."

Count us in! www.GraffitiRadio.com will be dead silent on May 8th! Alternative Rock will have to wait until the 9th to be heard again!
Radio Bop is on board for the Day of Silence on May 8th!
EAR.FM is one of the first 100 stations to exist at Live365, is still here today and we intend to be here tomorrow as well. We pledge our commitment to the Day Of Silence.
We're in on this as well. ---City Sounds Radio

We will participate in the day of silence!! -- The Monks Media Radio Network,
www.monksmedia.com

We are definitely committed to the cause. Count us in for May 8th! --DementedRadio.com
Though it's not an internet radio station, bitsdujour.com will support the day of silence by not having any bits on our site that day, and sending visitors to
savenetradio.org.

May 8th, we will be supporting the "Day of Silence" and we will do whatever is necessary to help support. -- Firstclasshiphop.com

NeverEndingWonder Radio will join the Day of Silence.
FOXY.FM will support the "Day of Silence" on May 8th. Also we are going to replace our website with an explanation and banner for SaveNetRadio.org.
www.foxy.fm
praradio.org is participating in the day of silence and working on our region

We will go silent on May 8th in support of the alliance. -- WebRadioPugetSound

The entire Radio X Network is in. All 5 of our stations will be silent on Tuesday the 8th. ---Radio X Network (.com)

Delicious Agony Progressive Rock Radio is in and we'll get our small band of "progressive rock" stations to join us. Thanks for all your efforts!
I would be willing to pull our groovyradio.net stream off-air on 5/8. We cannot afford to continue under the new royalty plan.
Count fluffertraX in for the May 8 Day of Silence. Thank you for proposing it. I still hear the silence of iM Networks, caused by the CARP in 2002. We are more than happy to go silent and take a stand.
What a great, great idea. A Day Of Silence. I'm a small timer on Live365 and 'I'm In"...Super. I'll do what I can to get the word out to fellow broadcasters that I know!!
-- All Rock Legends
Let's do it! You have our support! 525.com Power Tracks will join the May 8th Day of Silence and urge this to be a global effort, as well. I think it would be a great idea to get a list of stations going that plan to join the Day of Silence to sort of put the pressure on other stations who may be indecisive about shutting down for the day.
I will gladly participate in this for sure.
-- WVSGRadio.com
Let's go for another Day of Silence ... Let's Roll !!
-- Fabsfab French Briton
This is a great idea, both our stations (WCH Radio and The Wave) will support it. We also run two podcasts from our MySpace pages and our websites. We could run all the PSAs only on that day on our podcasts also.
I'll be on the hill with you (again) and you can count on 1Club.fm and WBMX.com being SILENT on that day with just one thing running... OUR PSA pointing the listeners to contact their Congress persons or else this (insert silence) is all you're going to hear after next week on your favorite Internet radio stations.
I'm in! We've got to create public outrage!
-- NiceNoise.net
LuxuriaMusic.com is on-board.
Day of Silence? I'm in. Although small by comparison to many other 'net-caters, Pagan Radio Network has a loyal listenership.
I like the idea of total silence... we need the biggest impact possible. Puregold Rock 'N Roll would love to help in any way. I also think each station should notify their local press with a release as to the total black-out of Internet radio.
I'm all for a day of silence...as they say, absence makes the heart grow fonder. I have invested a lot of passion and energy into Devil Free Radio and will go down swinging!
Count me in.
-- BAGeL Radio
I am in for the 8th of May!
-- www.realdanceradio.com
AmericanaRoots.com will participate in the day of silence. My hats off to Kurt and all the fine folks that have worked so hard over the last few months.
MPYR RADIO would definitely participate in this. The day of silence is great.
I was considering May 1st for all Live365 stations. May 8th is also satisfactory.
-- Smooth Jazz and More
I am in on the day of silence.
-- www.AllMemphisMusic.com
We are definitely on board for a day of silence. Anything that we can do to help please let us know.
-- 181.fm
I fully support a "Day of Silence" or whatever is decided and whatever it is called. I agree that this must be a major news story.
-- BornAgainRadio
I wrote down May 8th as the day of silence, alerted my webmaster to create new banners told my production staff to come up with a loop to air by May 8th.
-- KNRJ/KAJM FM Phoenix
My station is based in Northern Virginia however I work in DC.
www.2ngradio.com (I'm one the Loudcity licensed stations, that also
would suffer a 2,000% rise).
We are committed to the "Day of Silence" on May 8th. Also we are going to forward our web site to SaveNetRadio.org.
-- KQLZ.org
Count us in... -- BluegrassRadio.org

 


 


Feb. 20, 2002 CARP rec.'s .07-cent fee for radio webcasts, twice that for 'Net only
Feb. 21, 2002 Industry reacts to CARP royalty rates for Internet broadcasts
Feb. 25, 2002 Industry still stunned by CARP arbitrators' recommendation.
Feb. 27, 2002 CARP arbitrators gave RIAA more than they asked for!
April 18, 2002 Mercury News editorial
April 22, 2002 Day of Silence proposed
April 23, 2002 More support in Congress
April 25, 2002 Day of Silence is ON!
April 29, 2002 DOS in USA Today, NY Post
May 1, 2002 Day of Silence
June 20, 2002 Librarian Decision
June 24, 2002 Cuban on Yahoo deal
July 11, 2002 Labels to Net radio: Die Now!
October 1, 2002 Forbes coverage (scroll down)
November 15, 2002 Small Webcasters Settlement Act
December 16, 2002 Small commercial webcaster license
 
Upcoming conferences
May 2

Future of Music Coalition D.C. Policy Day: Washington D.C.

September 26-27 NAB Radio Show: Charlotte, NC
October 13

IBS Webcast Conference: Seattle, WA

October 27 IBS Webcast Conference: Chicago
November 3 IBS Webcast Conference: Boston, MA
November 4-6 NAB European Radio Conference: Barcelona, Spain
December 1 IBS Webcast Conference: Fort Lauderdale, FL
December 8 IBS Webcast Conference: Los Angeles

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