This in from a friend of mine in the music industry I emailed about this issue:
NPR Motion Seeks Rehearing of Streaming-Royalty Rates
National Public Radio has filed a motion for rehearing of the Copyright Royalty Board's recently set streaming royalty rates that forces smaller webcasters and public outlets into a per-stream rate for each song. In the 9-page document filed this afternoon, NPR says the new rates will multiply its license costs several-fold, making its make cost-prohibitive.
According to the motion, NPR says the revised rate structure would make impossible "any systematic effort on NPR's part to continue its prior commitments to enhance online music discovery and education opportunities for its listeners and to provide more exposure for emerging and non-mainstream artists via streaming."
The Small Webcasters Settlement Act, which let small webcasters pay a percentage of revenue, expired in 2005. With the CRB now deciding new rates for 2006-2010, commercial webcast and simulcast rates were set at $0.0008 per stream (up from about $0.0007), with a minimum of $500 per year for each channel or station. NPR called the $500 minimum "an arbitrary and insupportable annual minimum fee."
According to NPR VP/Communications Andi Sporkin, "The board's decision to dramatically raise public radio stations' rates was based on inaccurate assumptions and lack of understanding of the issues. The new rates inexplicably break with the longstanding tradition of recognizing public radio's non-commercial, non-profit role, while the procedures we're being asked to now undertake for measurement are non-existent, arbitrary and costly."
She continued, "In its decision, the Board has attempted to equate public radio with commercial radio, which we are not. Instead, public radio is driven by a public service mission on behalf of underserved and unserved audiences; in our Internet music efforts, those audiences include both listeners and the music community that seeks public radio to reach those listeners. We hope the Board will reconsider."
NPR also says the motion is the first step in its efforts to reverse the decision, and it will be followed by an appeal of the Board's decision to be filed with the U.S. Court of Appeals for the DC Circuit.
AND
The Copyright Royalty Board announced late yesterday it is considering "Motions for Rehearing" filed by various parties affected by the Board's recent webcast royalty determination.
Previously, both Radio & Records and CNet News had mistakenly reported that a rehearing had been granted by the CRB in the royalty rate case. While it is promising that the Board is agreeing to hear motions, no rehearing has been granted at this time.
Many advocates of Internet radio see the decision to hear motions as a "first step" toward the resolution of problematic issues surrounding the royalty rate decision.
In a brief issued yesterday afternoon [.pdf], ChiefCopyright Royalty Judge James Scott Sledge wrote that crbthe Board "desires to hear the positions of each party on each of the issues raised in these motions." The brief also notes that the responses to the motion must be filed by April 2nd.
Since the CRB's March 2nd announcement of the proposed royalty rates there has been a swift and massively negative response to the decision stson behalf of journalists, advocates, webcasters and listeners alike.
Over the past number of days, tens of thousands of fans have poured into petition signing sites like SaveTheStreams.org and SaveOurInternetRadio.com, while press outlets from the Wall Street Journal to Salon.com have been quick to give the issue a continuing spotlight.
Should be interesting.
by the way check out our online radio station at
www.americanaroots.com, click on Roots Radio and then Listen Now in the drop down box.
See ya.
Ray
But I got yer back, brothers!
R You're a good man to watch our backs.
