|IP: Webcasting Royalties|
"In March, the CRB drastically increased royalty rates for webcasters - starting retroactively at $0.0008 per song in 2006 and climbing to $0.0019 per song in 2010. Though it costs only fractions of a penny per song, the change amounts to a 300 percent cost increase for the largest webcasters and up to a 1200 percent increase for smaller operations. "This Titanic rate increase is simply untenable for many Internet radio broadcasters," said Inslee, a member of the House Energy and Commerce Subcommittee on Telecommunications and the Internet. - Lawmakers Hope to Prevent Demise of Internet Radio, Rep Jay Inslee (April 26, 2007)
The Copyright Arbitration Royalty Panel ( CARP ) had apparently agreed on music royalty rate agreement for webcasters that was a pig, and would have put webcasters in the Poor House. Therefore, Rep. Jay Inslee introduced the Webcaster Settlement Act which overrides the CARP decision, and allows the webcasters and the copyright owners to negotiate a new deal.
This had the support of both sides of the negotiating table - the webcasters and SoundExchange, which represents the copyright owners. But the National Association of Broadcasters opposed it . But after a few smoke filled, back room deals, the NAB relented and the legislation went through unanimously. It was sent to Still-President Bush and was signed into law on October 16, 2008.
Now everyone is happy (more or less):
- Inslee Internet Radio Bill Passes Senate Press Release : October 1, 2008 "It's a true delight to pass a bill which will allow for the survival of webcasting. Internet radio is an integral part of many of my constituents' daily lives and this bill will keep it that way."
- DiMA Thanks Congress for Passing Webcasters Settlement Act . "On behalf of DiMA and our Internet radio members, I want to thank Congress for acting quickly to pass the Webcaster Settlement Act. This legislation will enable DiMA and our member companies, and all Internet radio services, to continue negotiating royalty rates with SoundExchange for the years 2005-2015." "We express great thanks to Senators Wyden and Brownback, and Representatives Inslee and Manzullo for sponsoring the Webcaster Settlement Act and also being great leaders of the Internet Radio Equality Act.
- Press Release SoundExchange Welcomes Senate Passage of Webcaster Settlement Act , (Oct. 1, 2008) "The bill was needed to give the parties more time to negotiate while Congress is out of session and allow any agreements to take effect. Though there has been progress in the talks, SoundExchange expressed a note of caution because there is no deal yet with large webcasters although an agreement in principle with National Public Radio had already been announced. "We are hopeful, but we've been close at other times during the past 18 months," said John Simson, Executive Director of SoundExchange. "Certainly, Congressman Howard Berman's role as facilitator has helped tremendously in moving the ball forward. My hope is that we can quickly get back to the table and capitalize on the momentum."
- Nab Statement On Senate Passage Of Webcaster Settlement Act , (Oct. 1, 2008) "NAB looks forward to sitting down quickly with SoundExchange to craft equitable streaming rates that enhance the online music experience and expose more artists to our listeners."
The law itself is relatively simple. According to the Congressional Reports Summary :"Webcaster Settlement Act of 2008 - Allows a receiving agent (designated by the Librarian of Congress to collect royalties that ultimately are disbursed to sound recording copyright owners and performers) to enter into agreements with webcasters that establish royalty terms for the performance of sound recordings over the Internet. Provides that such agreements, which may be effective for a period of up to 11 years following January 1, 2005, are to be binding on all copyright owners of sound recordings and other persons entitled to payment, in lieu of any determination of compulsory license rates by the Copyright Royalty Judges.
Terminates the authority to negotiate settlement agreements under this Act on February 15, 2009.
Declares that nothing in this Act (or any agreement entered into under this Act) shall be taken into account by the U.S. Court of Appeals for the District of Columbia Circuit in its review of the May 1, 2007 determination of royalty rates by the Copyright Royalty Judges."
Title: To amend section 114 of title 17, United States Code, to provide for agreements for the reproduction and performance of sound recordings by webcasters.
Sponsor: Rep Inslee, Jay [WA-1] (introduced 9/25/2008) Cosponsors (4)
Related Bills: S.3649
Latest Major Action: Became Public Law No: 110-435 [GPO: Text , PDF ]
President Bush Signs H.R. 2095, H.R. 6296, H.R. 6531, and H.R. 7084 , White House (Oct. 16, 2008)
|Docket No. RM 2002-1D||Comments Due Nov 24, 2003
Replies Due Dec 22, 2003
|WEBCASTING NOTICE AND RECORDKEEPING FOR PAST PERFORMANCES|
The Copyright Office is requesting public comment on what regulations it should adopt relating to records of use for past performances of sound recordings performed pursuant to the statutory license for public performances of sound recordings by means of digital audio transmissions (including webcasting) since October 28, 1998. These regulations will relate to performances that have taken place before the adoption of recordkeeping and reporting requirements that will be announced soon. Among other things, the Office wishes to know whether there are any proxies that may be used in lieu of actual reporting of past performances. Initial comments are due November 24, 2003. Reply comments are due December 22, 2003. The notice may be found at http://www.copyright.gov/fedreg/2003/68fr58054.html
An original and five copies of any comment or reply comment shall be delivered by hand to: Office of the General Counsel, James Madison Memorial Building, Room LM-403, First and Independence Avenue, SE., Washington, DC 20559-6000; or mailed to: Copyright Arbitration Royalty Panel (CARP), PO Box 70977, Southwest Station, Washington, DC 20024-0977.
David O. Carson, General Counsel, or William J. Roberts, Jr., Senior Attorney, PO Box 70977, Southwest Station, Washington, DC 20024. Telephone: 707-8380; Telefax: 252-3423.
|Docket No. RM 2000-3|
Rulemaking to Determine Whether a Transmission of an AM or FM Radio Signal made over a Digital Communications Network by an FCC-licensed Broadcaster is Exempt from the Digital Performance Right
|65 FR 77292 December 11, 2000. PDFText|
|Notice Given||Comments Due April 17
Replies due May 1
Notice and Recordkeeping Requirements for Digital Transmissions of Sound Recordings under Statutory License (licensing fees for streaming media)
|Docket No. RM 2000-4B|
Denial of a Petition to Initiate a Rulemaking Proceeding
|65 FR 77330 December 11, 2000. (corrected text) PDFText
65 FR 78434 December 15, 2000 (notice of correction) PDFText
|Docket No. RM 2000-9 CARP DTRA 1&2.|
Request for Notices of Intent to Participate and the Announcement of the Precontroversy Discovery Schedule
|"The Copyright Office is engaged in an ongoing rate adjustment proceeding, the purpose of which is to set rates and terms for the section 114 statutory license. Docket No. 99-6 CARP DTRA. Because the outcome of the rulemaking on the scope of the exemption for broadcasters would have a significant impacton the identity of the parties to this rate adjustment proceeding, the Officedecided not to adopt a schedule for the precontroversy discovery period forthis proceeding until the rulemaking was concluded. Order, Docket No. 99-6 CARP DTRA, March 21, 2000. Now that the issue is resolved, the Copyright Office is requesting additional notices of intent to participate and announcing the schedule for this proceeding in a notice in the Federal Register.." Copyright Office Webcast Webpage||65 FR 77393 December 11, 2000. PDFText|
|Docket No. RM 2000-9 CARP DTRA 1&2.||comments are due September 16, 2002||Decision Appealed|
Order Consolidating CARP Proceedings to Determine Rates and Terms for Statutory License for Nonsubscription Digital Transmissions of Performances of Sound Recordings and Setting Schedule for Proceedings
|Copyright Office Requests Comments on 1999, 2000, and 2001 Musical Works Funds Controversy and Notices of Intention to Participate in 1999, 2000, and 2001 Distribution of Musical Works Funds. The notices and the comments are due September 16, 2002.,
"The Library of Congress has ordered the consolidation of the Copyright Arbitration Royalty Panel (CARP) proceedings to establish rates and terms for (1) October 28, 1998, through December 31, 2000, and (2) January 1, 2001, through December 31, 2002, for the statutory licenses that allow public performances of sound recordings by means of eligible nonsubscription transmissions (17 U.S.C. §114(f)(2)), and the making of an ephemeral phonorecord of a sound recording in furtherance of making a permitted public performance of the sound recording (17 U.S.C. §112(e). The order also establishes a schedule for the consolidated proceedings. All filings in the consolidated proceedings should be filed under the new docket number, Docket No. 2000-9 CARP DTRA 1&2." Copyright Office Webcast Webpage
May 21 2002 LOC Must Act on Webcasting Royalties (CARP)
- 17 U.S.C. §§ 114(f)(2)(B), 801(b)(1). The Copyright Royalty Board is an independent administrative law panel housed in the Library of Congress that adjudicates the rates and terms of the statutory licenses in the Copyright Act. 17 U.S.C. §§ 801-805
HR 2060, Internet Radio Equality Act S.1353 : A bill to nullify the determinations of the Copyright Royalty Judges with respect to webcasting, to modify the basis for making such a determination, and for other purposes. Sponsor: Sen Wyden, Ron [OR] (introduced 5/10/2007) Cosponsors (5)
Committees: Senate Judiciary Latest Major Action: 5/10/2007 Referred to Senate committee. Status: Read twice and referred to the Committee on the Judiciary.
- Hearing: The Future of Radio, Senate Commerce Committee (Oct. 24, 2007)
- NAB (Russell Whithers) testified that it supports legislation vacating the earlier CARP royalty decision, on the grounds that it presents a barrier to those stations who want to enter this new medium.
- Mr. Tim Westergren Chief Strategy Officer & Founder Pandora - CARP Royalty rates are absurd. Would lead to Pandora paying 50% of its revenue in royalties. Call upon Congress to support Internet Radio.
- Senate 9:30 a.m. Judiciary To hold hearings to examine copyright royalties, focusing on webcasting. SD-226, Senate 5/10/02
- Register of Copyrights, Report on Performance Right in Sound Recordings, H.R. Doc. No. 15, 95th Cong., 2d Sess. (1978); Register of Copyrights, (Oct. 1991)
- Letter from Cameron F. Kerry to Honorable Patrick Leahy (Apr. 1, 2010)
- Administrationís White Paper on Intellectual Property Enforcement Legislative Recommendations 17 (Mar. 2011),
Copyright Arbitration Royalty Panel (CARP) Information
"The current CARP system consists of ad hoc arbitration panels that recommend the royalty rates and distribution of royalty fees collected under certain of the statutory licenses and set some of the terms and conditions of some of the statutory licenses. Each CARP is selected for a particular proceeding (examples: a rate adjustment for the cable statutory license; a distribution of digital audio recording technology funds) and has up to 180 days to deliver its recommendation for the rate adjustment or distribution, as the case may be."
|Date||General Carp Information|
|Dec. 30, 1999||Copyright Arbitration Royalty Panels; Rule and Regulations, Extension of comment period|
|Dec. 18, 1998||Proposed Amendments to Regulations Governing Conduct of CARP Proceedings|
|Jun. 17, 1997||Determination of Statutory License Rates and Terms for Certain|
|Jun. 2, 1997||Digital Subscriptions...Announcement of the Schedule for the proceeding|
|May 16, 1995||Digital Audio Recording Devices and Media—Access to and Confidentiality of Statements of Account ...|
|Nov. 29, 1994||Copyright Arbitration Royalty Panels—Rules and Regulations|
|Feb. 7, 1995||Copyright Arbitration Royalty Panels; Corrections|
|Feb. 7, 1995||Copyright Arbitration Royalty Panels; Corrections|
|Jun. 22, 1994||CARP; Rules and Regulations: Final Rule and Corrections|
|Apr. 7, 1994||New Post Office Boxes|
|Dec. 17, 1993||Copyright Royalty Tribunal; Transfer and Adoption of Regulations|
|Dec. 17, 1993||New Copyright Arbitration Royalty Panels Established|
|Feb. 1, 2002||CARP; 2002-2003 List of Arbitrator Names PDF, TEXT|
|Jan. 14, 2000||CARP; 2000-2001 List of Arbitrtor Names|
|May 11, 1999||Payment of Arbitrators; Distribution Proceedings|
|Date||Reports of Copyright Arbitration Royalty Panels|
|Feb. 20, 2002||Webcasting Rates|
|Apr. 16, 2001||Phase II Cable Royalty Distribution Report for 1993, 1994, 1995, 1996, and 1997 Cable Royalty Funds|
|Nov. 17, 2000||Distribution of DART Royalty Funds For 1995, 1996, 1997 and 1998 Version:|