Webcasters urged Copyright Office to set royalty rate for Web rad...

Media Assn. and companies such as Launch Media, Netradio.com and RealNetworks said Copyright Office should set compulsory license royalties for Webcast performance rights of sound recordings at $.0015 per listener hour, rate that could generate hundreds of millions of dollars for recording industry (CD Dec 11 p4). Unlike radio broadcasters, which pay royalty fees solely for performance of musical composition, Webcasters are required by Digital Millennium Copyright Act (DMCA) to pay for both performance of underlying song and sound recording. That -- and fact that, unlike broadcasters, Web radio companies must pay for bandwidth to stream programs to each customer -- makes it harder for industry to make money, said RealNetworks Vp-Govt. Affairs Alex Alben at Wed. news briefing. Webcasters will try to convince 3-member arbitration panel -- which hasn’t been selected yet -- that it should adopt model that will pay artists but recognize Web radio companies’ costs and risks, said Ken Steinthal, who’s representing Webcasters. Economist hired by Webcasters studied what performance rights societies such as BMI and ASCAP received for performances over broadcast radio, he said, and will testify that appropriate Web radio royalty rate for sound recording performances should be derived from adjusting value of underlying composition performances in broadcasting. RIAA also was expected to file CARP submissions Wed., we're told. No one from RIAA was available for comment at our deadline. Steinthal said rate they sought during negotiations was “well over 10 times” rate proposed by Webcaster model.