RAIN 11/12: RAIN publisher Hanson joins Net radio panel at tomorrow's Future of Music Summit

Paul Maloney
November 12, 2012 - 2:05pm

RAIN publisher and AccuRadio CEO Kurt Hanson will speak at tomorrow's Future of Music Summit in Washington, D.C., taking part in the panel "Radio-active: Internet Broadcasting and Artist Compensation."

Panelists will discuss the lack of parity when it comes to how different forms of radio pay for the use of copyright compositions and recordings -- and more specificially, about the Internet Radio Fairness Act (IRFA, more here). The IRFA would move Internet radio sound recording rate determination to the more universal 801(b) standard. Advocates say this would make for a more equitable and healthy marketplace, but critics only see it as a reduction in artist revenues.

Oregon Senator Ron Wyden (D), who introduced the Internet Radio Fairness Act (S.3609) in the Senate in September will keynote the conference. Pandora founder Tim Westergren will also speak.

As we reported (here), the Future of Music Summit is sold out, but will be streamed by Backbone Networks and TuneIn (here, where you can now tune in to audio highlights from past FoMC Summits).

The Internet radio panel will be moderated by Washington Post pop music critic Chris Richards. The other scheduled panelists are David Lowery (former frontman with the bands Cracker and Camper Van Beethoven, now a University of Georgia lecturer), CEA SVP/Government Affairs Michael Petricone, Assc. General Counsel of the AFM Patricia Polach, and SoundExchange General Counsel Colin Rushing.

See the Summit schedule here.

Paul Maloney
November 12, 2012 - 2:05pm

Last week we learned (here) that leading webcaster Pandora -- in addition to backing the Internet Radio Fairness Act with the hope of a lower sound recording royalty -- filed suit against ASCAP with regard to royalties on music compositions. A short piece in the Copyhype blog reviews the history of ASCAP, "consent decrees," and "rate court" to show that Pandora's suit is simply "part of the process... The court filing doesn’t allege any sort of malfeasance or breach..."

Reads the blog, "Under the consent decree, ASCAP is required to provide a reasonable fee upon request. If a potential licensee disagrees with the fee provided by ASCAP, it can bring suit in court. ASCAP has the burden of proving the reasonableness of the fee; otherwise, the court will weigh the evidence to determine a reasonable fee."

Pandora and ASCAP -- one of three U.S. performance rights organizations that collect and distribute royalties for the use of song compositions -- have negotiated for a year but have been unable to reach an agreement on what the webcaster should pay. Pandora reportedly wants a deal similar to what AM/FM broadcasters have. Earlier this year ASCAP and radio agree broadcasters would pay 1.7% of their gross revenue, minus deductions based on advertising commissions.

Read the Copyhype piece here.