Copyright Office sets Webcasting royalty rates
The U.S. Copyright Office publishes royalty rates for Web music broadcasts, ending a yearlong process marked by legal and financial wrangling.
Regulations published on Feb. 6 essentially rubber-stamped a resolution reached last April between online music broadcasters and the Recording Industry Association of America, the industry trade group for big record labels like Time Warner's Warner Music Group and Vivendi Universal's Universal Music Group.
In addition to setting rates for the 2003-2004 license period, the Copyright Office also named SoundExchange--a former RIAA arm spun off as a separate nonprofit group in September 2003--as the sole designated agent to collect and distribute royalties from Webcasters and new online subscription services.
The recording industry and Webcasters finally agreed on a proposed 0.076 cents per performance or 1.17 cents per aggregate hour tuned in for free, advertising-supported services. Webcasters had opposed other rates the RIAA suggested, saying they would put them out of business.
The new regulations made official last week governing rates and terms for online music subscription services with noninteractive streaming components, Internet radio stations and traditional broadcasters that simulcast signals online.
The negotiated rates were submitted to the Copyright Office for adoption on April 14, but a legal objection by one company, dropped last month, led to a delay.
Under the new regulations, all covered services are required to submit a lump sum payment to SoundExchange covering the period from Jan. 1, 2003 through Feb. 29, 2004, on or before April 14, 2004, SoundExchange said Tuesday.
Starting in March, services are required to make royalty payments within 45 days after the end of each month.
Additionally, commercial Webcasters, broadcast simulcasters and new subscription services must choose their preferred rate structure by March 8, 2004.
John Simson, executive director for SoundExchange, told Reuters that the group expects to shortly sign on to a worldwide agreement that would let Webcasters stream into foreign territories without fear of liability.
Story Copyright © 2004 Reuters Limited. All rights reserved.