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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/

Date: 2002-05-01 07:18 am (UTC)From: [identity profile] cynnerth.livejournal.com
Jesus H. Christ....that is the most ridiculous new twist from the record companies! :(

Date: 2002-05-01 07:44 am (UTC)From: [identity profile] spooble.livejournal.com
Speaking as an artist, I'm all for skipping the record companies and paying us directly. You pay less, we get more...

Then again, we have our own label, and it'd be nice to quit the day job...

I can kinda see both sides.

Yet those gigantoid companies certainly don't need to pad Clive Davis' wallet any more.

Their stockholders will be angry if they don't, though...

...Let's All Go To The Lobby...

Date: 2002-05-01 08:40 am (UTC)From: [identity profile] penpusher.livejournal.com
Isn't this some tactic used by the big money record companies to assure more profits?

Somehow, selling "double cassette recorders" and blank tapes at record stores was perfectly okay before. Now, you can't play a song without a stink being raised!

Maybe if the big record labels weren't abusing their abilities, things would work out for everybody. But, of course, it isn't as straightforward as all that, is it?

Still, when a artist generates millions of dollars in record sales, and then declares bankruptcy (which has happened many more times than once over the past ten to twenty years), you have to wonder about all elements of the system, not just the newer ones that are being attacked.
That's exactly what it is. Big business pressuring the government into assuring them even more profits. They already rip off the artists. They claim they are responsible for making money for the artists, and that's true to a point, depending on the artist, but it's getting out of hand.

I don't understand why more artists don't go independent and sell their own records. I guess it's because they know they wouldn'tmake as much money. Maybe the big labels are right in sucking up that share of the profits. But if they make that much, why are they taking more? Even for those big labels, this particular profit-sucking is outta line.

Date: 2002-05-01 09:17 am (UTC)From: [identity profile] vlinker.livejournal.com
so, just what is the difference between an internet radio station and a standard radio station? why should they be held to different standards?>

Date: 2002-05-01 10:26 am (UTC)From: [identity profile] low-delta.livejournal.com
That's the worst of it all.

Date: 2002-05-01 09:46 am (UTC)From: [identity profile] cherie.livejournal.com
Wolfman and I quite enjoy our internet radio stations and listen to them regularly. It appears anything for 'free' on the internet is a real threat to big business and corporations as they see billions of dollars slipping away from their grasp as we all enjoy our internet freedoms. (although I believe it is not for free because we are all paying to be on-line with our $25 a month or $60 a month for fast speed etc.)

I am afraid slowly little things are being taken away from us internet users one by one. Our once a month fee we pay should cover whatever we find on the internet, but alas soon we will be paying extra for each thing we bring up and even each individual email could be charged from what I heard somewhere.

Maybe we should boycott the record companies entirely and not buy CDs and their products until they get their butts out of the sand. I do agree with one the responses here that the musicians should start their own companies so they get the money directly instead of being reamed by the record companies.

What I believe to be a VERY important thing to remember here is the fact that who the citizens of the US vote into office has a great deal to do with what is happening in the world that effects our daily lives. For instance, we all know that Bush is not a highly technical guy and him and his appointees find high tech issues nonexistant on their list of important things. What people forget is technology is the future and without it we are living in the past. Remember to vote next time for officials who have shown an interest in high tech and have progressive ideas about the future when it comes to business and how technology can help play an important role.

In my own state I will be casting my vote for David Wu for our next govenor. He has a proven past record in helping Oregonians in high technology and this is a field that he would represent with experience and passion.

Just some thoughts. I guess your post really got my mind going this morning. Thanks Kevin.

Date: 2002-05-01 10:02 am (UTC)From: [identity profile] cherie.livejournal.com
Sorry my error - I meant to say David Wu - my Representative In Congress...

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