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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.

 

 
RAIN News Flash!: H.R. 2060, the House version of the Internet Radio Equality Act, has gained its 100th co-sponsor. Get the rundown of all the co-sponsors in this issue here.


Headline: "Berman-Coble letter makes SX's argument to SX"
BY DANIEL McSWAIN and PAUL MALONEY
Monday's SoundExchange offer to small webcasters to reauthorize the rates and terms of the Small Webcaster Settlement Act of 2002 (with some unspecified modifications) was, according to the press release, supposedly spurred by a letter from Reps. Howard Berman (D-CA, right) and Howard Coble (R-NC, left), the Chairman and ranking minority member, respectively, of the House Judiciary Committee's Subcommittee on Courts, the Internet and Intellectual Property (See RAIN coverage here).

Copies of the Berman-Coble letter, apparently released by SoundExchange to various journalists earlier this week and subsequently obtained by RAIN, are surprisingly interesting.

Specifically, of the five-page document, almost four pages are devoted to a defense of the CRB decision! And a careful read of the document reveals that most of the Berman-Coble letter's language almost precisely mimics the verbiage employed by the recording industry -- i.e., on the SoundExchange website and in various other SoundExchange press releases.

In other words, the Berman-Coble letter, oddly enough, primarily argues to SoundExchange SoundExchange's own precise arguments!

The letter also includes a previously-unannounced request by Berman and Coble for SoundExchange to achieve"resolution"... "no later than June 15, 2007" and notes that the writers "plan to advance legislation if we determine that it is the public interest."

A copy of the Berman-Coble letter in .pdf form is available here.

...
...
From Kurt's blog: "I'm Gonna Sit Right Down and Write Myself a Letter"
W
hat first caught my eye in the Berman-Coble letter was this sentence:

"In return for compelling sound recording copyright owners to make their works available, the qualifying services agree to meet the terms and conditions of the compulsory license, which, inter alia, requires the periodic filing of statements of account and the timely payment of statutory royalties."

Odd. Why would Reps. Berman and Coble feel obligated to tell John Simson something like this that he obviously already knows?

The only answer I could come up with is that SoundExchange wanted Berman and Coble to make that point so they could use the quote in their press release.

Applying Occam's razor
Let's imagine for a moment that SoundExchange was feeling the pressure of growing support for the Internet Radio Equality Act -- Congress besieged by e-mails, faxes, and phone calls from webcasters, musicians, and listeners; dozens of co-sponsors signing up for the bill; the NAB throwing in their support on Friday -- and wanted to derail its momentum.

One optimal way of doing it might be to cut a deal with two classes of webcasters that are driving most of the pressure from constituents, yet comprise only a tiny portion of royalty payments received: Small webcasters and non-comms.

And what better way to present that plan than to say it was "at the request of Congress" (even though it was technically only at the request of two Congressmen who, based on their past voting history, likely would have opposed the Internet Radio Equality Act)?

And better yet, what if the request "from Congress" was a five-page letter filled with every point SoundExchange wanted made in support of the CRB decision? Score!..

For more, see Kurt Hanson's "Radio And Music: A New Blog," here....
 
RAIN is brought to you today by:
Save Net Radio

Internet radio may be driven out of business within weeks by a Copyright Royalty Board decision that gives record companies a royalty rate that exceeds 100% of most webcasters' total revenues.

Visit SaveNetRadio.org for links to a petition to Congress you can sign, and to send the message directly to your Representative and Senators that you don't want to lose Internet radio!


From the SaveNetRadio.org press release
: "A bill that would save the Internet radio industry from a dramatic increase of fees webcasters pay to play music gained the support of its 100th member of the House of Representatives today.

"Introduced by Representatives Jay Inslee (D-WA) and Donald Manzullo (R-IL), the Internet Radio Equality Act (H.R. 2060) would vacate the Copyright Royalty Board (CRB) decision that increased the royalty rates by 300%-1200% over the next five years.

"'Members of Congress are hearing loudly and clearly the passionate voices of webcasters, music fans and artists who have marched on Capitol Hill with their feet, their calls and their letters. Reaching 100 cosponsors in three legislative weeks is extraordinary, and is a major milestone for tens of thousands of webcasters, millions of Internet Radio listeners, and thousands of artists invested in the future of Internet
radio,' Jake Ward, a spokesperson for SaveNetRadio said...

"Legislation currently before Congress, H.R. 2060 and S. 1353 -- the Internet Radio Equality Act -- would vacate the Copyright Royalty Board's decision and set a 2006-2010 royalty rate at the same level currently paid by satellite radio services (7.5% of revenue.) The bill would also change the royalty rate-setting standard used in royalty arbitrations, so that the standard applied to webcasters would align with that applied to satellite radio."

Read the entire text of the press release here. Below is the roster of all of H.R. 2060's supporters in the House so far.
The most recently added co-sponsors are highlighted in blue in the chart.

Bill sponsors
Representative Jay Inslee
Washington's 1st District
6th-term Democrat
Key committee(s): Energy and Commerce
Representative Donald A. Manzullo
Illinois's 16th District
8th-term Republican


Co-sponsors
Representative Neil Abercrombie
Hawaii's 1st District
10th-term Democrat
Todd Akin

Representative Todd Akin
Missouri's 2nd District
3rd-term Republican
Key committee(s): Small Business

Representative Michael Arcuri
New York's 24th District
1st-term Democrat
Representative Tammy Baldwin
Wisconsin's 2nd District
5th-term Democrat
Key committee(s): Energy and Commerce; Judiciary
Representative Roscoe Bartlett
Maryland's 6th District
8th-term R.epublican
Key committee(s): Small Business
Representative Earl Blumenauer
Oregon's 3rd District
7th-term Democrat
Rick Boucher Representative Rick Boucher
Virginia's 9th District
13th-term Democrat
Key committee(s): Energy and Commerce; Judiciary
Representative Bruce Braley
Iowa's 1st District
1st-term Democrat
Key committee(s): Small Business
Representative Corrine Brown
Florida's 3rd District
8th-term Democrat
Representative Vern Buchanan
Florida's 13th District
1st-term Republican
Key committee(s): Small Business
Representative Lois Capps
California's 23rd District
6th-term Democrat
Key committee(s): Energy and Commerce
Representative Michael Capuano
Massachusetts' 8th District
5th-term Democrat
Representative Dennis Cardoza
California's 18th District
3rd-term Democrat
Representative Julia M. Carson
Indiana's 7th District
6th-term Democrat
Ben Chandler Representative Ben Chandler
Kentucky's 6th District
2nd-term Democrat
Representative Emanuel Cleaver II
Missouri's 5th District
2nd-term Democrat
Representative Stephen I. Cohen
Tennessee's 9th District
1st-term Democrat
Key committee(s): Judiciary
Representative Joseph Courtney
Connecticut's 2nd District
1st-term Democrat
Representative Barbara Cubin
Wyoming (at-large)
7th-term Republican
Key committee(s): Energy and Commerce
Elijah Cummings Representative Elijah Cummings
Maryland's 7th District
6th-term Democrat
Representative Danny K. Davis
Illinois' 7th District
6th-term Democrat
Representative Susan A. Davis
California's 53rd District
4th-term Democrat
Representative Rosa DeLauro
Connecticut's 3rd District
9th-term Democrat
Representative Peter A. DeFazio
Oregon's 4th District
11th-term Democrat
Representative John T. Doolittle
California's 4th District
9th-term Republican
Representative Keith M. Ellison
Minnesota's 5th District
1st-term Democrat
Key committee(s): Judiciary
Representative Brad Ellsworth
Indiana's 8th District
1st-term Democrat
Key committee(s): Small Business
Representative Anna Eshoo
California's 14th District
7th-term Democrat
Key committee(s): Energy and Commerce
Representative Sam Farr
California's 17th District
8th-term Democrat
Representative Chaka Fattah
Pennsylvania's 2nd District
7th-term Democrat
Representative Bob Filner
California's 51st District
8th-term Democrat
Res. Com. Luis Fortuno
Puerto Rico (at-large)
1st-term Republican
Representative Virginia Foxx
North Carolina's 5th District
2nd-term Republican
Representative Paul E. Gillmor
Ohio's 5th District
10th-term Republican
al green Representative Al Green
Texas's 9th District
1st-term Democrat
Representative Raul M. Grijalva
Arizona's 7th District
3rd-term Democrat
Key committee(s): Small Business
Representative Luis V. Gutierrez
Illinois' 4th District
8th-term Democrat
Key committee(s): Judiciary
Representative Phil Hare
Illinois' 17th District
1st-term Democrat
Representative Brian M. Higgins
New York's 27th District
2nd-term Democrat
Representative Baron Hill
Indiana's 9th District
4th-term Democrat
Key committee(s): Energy and Commerce
Representative Maurice Hinchey
New York's 22nd District
8th-term Democrat
Representative Mazie K. Hirono
Hawaii's 2nd District
1st-term Democrat
Representative Michael M. Honda
California's 15th District
4th-term Democrat
Representative Jesse Jackson, Jr.
Illinois' 2nd District
7th-term Democrat
Representative Timothy V. Johnson
Illinois' 15th District
4th-term Republican
Representative Stephanie Tubbs Jones
Ohio's 11th District
5th-term Democrat
Representative Steve Kagen
Wisconsin's 8th District
1st-term Democrat
Representative Dale E. Kildee
Michigan's 5th District
16th-term Democrat
Representative Ron J. Kind
Wisconsin's 3rd District
6th-term Democrat
Representative Mark S. Kirk
Illinois' 10th District
4th-term Republican
Representative Dennis J. Kucinich
Ohio's 10th District
6th-term Democrat
Representative Ray H. LaHood
Illinois' 18th District
7th-term Republican
Representative Rick Larsen
Washington's 2nd District
4th-term Democrat
Key committee(s): Small Business
Representative Barbara Lee
California's 9th District
6th-term Democrat
Representative John Lewis
Georgia's 5th District
11th-term Democrat
Representative Jim Matheson
Utah's 2nd District
4th-term Democrat
Key committee(s): Energy and Commerce
Representative Doris Matsui
California's 5th District
2nd-term Democrat
Representative Michael McCaul
Texas' 10th District
2nd-term Republican
Representative Jim McDermott
Washington's 7th District
10th-term Democrat
Representative Cathy McMorris Rodgers
Washington's 5th District
2nd-term Republican
Representative Gerald McNerney
California's 11th District
1st-term Democrat
Representative Michael R. McNulty
New York's 21st District
10th-term Democrat
Representative Michael H. Michaud
Maine's 2nd District
3rd-term Democrat
Key committee(s): Small Business
Representative George Miller
California's 17th District
17th-term Democrat
Representative Dennis Moore
Kansas' 3rd District
5th-term Democrat
Representative James P. Moran
Virginia's 8th District
9th-term Democrat
Representative Christopher S. Murphy
Connecticut's 5th District
1st-term Democrat
Representative Patrick Murphy
Pennsylvania's 8th District
1st-term Democrat
Representative Marilyn Musgrave
Colorado's 4th District
3rd-term Republican
Key committee(s): Small Business
Representative Richard E. Neal
Massachusetts' 2nd District
10th-term Democrat
Delegate Eleanor Holmes Norton
District of Columbia (at-large)
9th-term Democrat
Representative James L. Oberstar
Minnesota's 8th District
17th-term Democrat
John Olver

Representative John Olver
Massachusetts's 1st District
8th-term Democrat

Representative Frank Pallone, Jr.
New Jersey's 6th District
10th-term Democrat
Key committee(s): Energy and Commerce
Representative Ron E. Paul
Texas' 14th District
10th-term Republican
Representative David E. Price
North Carolina's 4th District
10th-term Democrat
Representative Nick J. Rahall II
West Virginia's 3rd District
16th-term Democrat
Representative Dave Reichert
Washington's 8th District
2nd-term Republican
Representative Tim Ryan
Ohio's 17th District
3rd-term Democrat
John Salazar Representative John Salazar
Colorado's 3rd District
2nd-term Democrat
Representative Allyson Y. Schwartz
Pennsylvania's 13th District
2nd-term Democrat
Representative Jose E. Serrano
New York's 16th District
10th-term Democrat
Representative Christopher Shays
Connecticut's 4th District
11th-term Republican
Representative Carol Shea-Porter
New Hampshire's 1st District
1st-term Democrat
Representative Albio Sires
New Jersey's 13th District
2nd-term Democrat
Representative Louise McIntosh Slaughter
New York's 28th District
11th-term Democrat
Representative Adam Smith
Washington's 9th District
6th-term Democrat
Representative Adrian Smith
Nebraska's 3rd District
1st-term Republican
Representative Zack Space
Ohio's 18th District
1st-term Democrat
Representative John M. Spratt, Jr.
South Carolina's 5th District
13th-term Democrat
Representative Fortney H. Stark
California's 13th District
18th-term Democrat
Representative Lee Terry
Nebraska's 2nd District
5th-term Republican
Key committee(s): Energy and Commerce
Mike Thompson Representative Mike Thompson
California's 1st District
4th-term Democrat
Representative John F. Tierney
Massachusetts' 6th District
6th-term Democrat
Tim Walz Representative Tim Walz
Minnesota's 1st District
1st-term Democrat
Representative Frank R. Wolf (R-VA 10th)
Virginia's 10th District
14th-term Republican
Representative Lynn Woolsey
California's 6th District
8th-term Democrat
Representative Albert Wynn
Maryland's 4th District
8th-term Democrat
Key committee(s): Energy and Commerce

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

Headline: "Clear Channel NY expands stations' wireless services"
From Digital Music News: "...Just recently
, [Clear Channel Radio] widened a pilot program involving a range of SMS-based concepts, including text-based song requests and dedications. Other aspects of the initiative include mobile-based alerts of upcoming songs, and the ability to view playlists on mobile devices.

"The broadened group of participants includes a number of leading stations in New York. Broadcasters like WHTZ-FM Z100 (Contemporary Hits Radio), WAXQ-FM Q104.3 (Classic Rock), WKTU-FM 103.5 (Rhythmic Adult Contemporary), WWPR-FM Power 105.1 (Urban) and WLTW-FM 106.7 (Adult Contemporary) are now spinning the latest concept.



"That expands an initial test involving Z100, a push that included mobile streams, podcast interviews, and various SMS-based components. The initial experiment required a $2.99 monthly fee, though the refreshed initiative is being offered free-of-charge...



"'By making these applications available for free via any cellular phone carrier, Clear Channel Radio is monumentally expanding access to its growing mobile content portfolio,' said John Hogan, chief executive of Clear Channel Radio. 'Each application allows users to have an individualized, on-demand experience, which will strengthen listeners' connection with their favorite radio stations.'"

Read the entire article at Digital Music News.

 


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!


 

Reader Feedback
Here's more feedback from webcasters and other RAIN readers on Tuesday's big news, "SoundExchange offers 12%-of-revenues rate to small webcasters," in RAIN here...

"We will get old the third time around in 2010..."


The extension of the 2002 Small Webcasters Settlement just means we have to do this all over again. Speaking as one who went to the Hill twice on this issue, I don't
want to go to D.C. again, not if we're crying the same blues. We will get old the
third time around in 2010.

The Internet Radio Equality Act takes the CRB out of the picture and that is a crucial need for the future. Plus, who wants to stay a small business forever?

 

Bone Mama




"When the time limit ends, the precedent for a higher rate is set..."


Sounds like a typical divide and conquer technique -- give the little guys a limited break thereby dimming their opposition, allowing rates to jacked up to larger pockets. When the time limit ends, the precedent for a higher rate is set and it gets jacked to the rest. Unity.

 

Henry Schwan




"If the reporting requirements remain, we would have to cease streaming..."


And there doesn't seem to be any word as to whether this applies to small non-commercial broadcasters.

And if the reporting requirements remain in place, we would have to cease streaming, as we can not afford to hire a research staff. We often play vinyl, 78 rpms, and music on foreign labels and in foreign languages and tracking and tracking that type of information would be burdensome and onerous. If we were a typical commercial broadcaster with a limited playlist (600 or so songs) and using an automated (hard drive based) playback system, it might be different, but with a multitude of sources (satellite, CD, vinyl, 78s, etc.) it is impossible for us to track the required information in a cost effective manner.

 

Rych Withers
KFCF-Fresno




"It doesn't mean we've won anything until the law itself is changed..."


SX's offering is nothing more than smoke and mirrors. The law now allows them to
charge the new rates and if "Good Faith" is the term that binds them to this offer
of lower rates then I would think twice about accepting.

SX is just throwing us a bone. It doesn't mean we've won anything until the law
itself is changed by the bills currently in Congress.

 

Steve Schefer

 
 
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