May. 1st, 2002

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Why are internet radio stations being required to pay song royalties to record companies!!!

This is being broadcast by my favorite internet radio station:

There is an issue currently being considered by the US Copyright Office of the Library of Congress that could have a chilling effect on the survival of Internet radio. At issue is the royalty rate Internet radio stations will be required to pay record companies for webcasting their music. The decision will be made by May 21st.

Issue - Copyright Royalty Rates
First of all, we believe artists and songwriters deserve to be paid for what they do. We currently pay royalties to songwriters to organizations like BMI, SESAC and ASCAP. What is being proposed is an additional royalty to the record companies that broadcast radio stations have never had to pay. Broadcasting music was always considered of promotional value to record companies, so those radio stations were exempt from such fees. Now, however, the record companies are claiming that Internet radio causes them to LOSE sales - unfairly lumping us in with file-sharing websites like Napster - even though our evidence shows that our listeners buy a lot of CD's based on what we play. Nevertheless, Internet radio stations and simulcast broadcasting radio stations will soon have to pay some royalties to record companies, in compliance with the current laws.

Recently, a copyright arbitration royalty panel (CARP) set forth proposed rates for these royalties. Unfortunately, the rates they proposed are so astronomically high, that they would effectively force most webcasters out of business. Also, these rates would be enforced retroactively, going back to 1998 and compounding the difficulty for Internet radio stations to survive if these rates are adopted.

There is still more you can do to help us win this fight and keep Internet radio alive.

Here's how you can help!

1. Contact the office of your local members of congress by phone or email.

2. If you call them, ask to speak to the legislative aid in charge of the Internet or intellectual property issues.

3. Ask them to get involved to help us save Internet radio and to support changes in the copyright law to guarantee your right to hear WMSE Frontier Radio on the Internet.

4. Refer to this legislation when speaking about this issue-
CARP report
[Docket No. 2000-9 CARP DTRA1&2]
Notice and Recordkeeping for Use of Sound Recordings Under Statutory License
[Docket No. RM 2002-1 37 CFR Part 201]


CARP Royalty Ruling:
http://www.loc.gov/copyright/carp/webcasting_rates.html

The story:
http://www.saveinternetradio.org/
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WMSE is having a day of silence to protest the CARP ruling.
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