SoundExchange Offers Cap on Minimum Royalty Fees

SoundExchange offered an olive branch to some small Webcasters in an effort to end the dispute over fees that are due to rise soon.
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SoundExchange offered an olive branch to some small Webcasters in an effort to end the dispute over fees that are due to rise soon.

The organization represents music labels in the debate over raising Internet radio royalties.

SoundExchange proposed capping the Internet music royalty fee at $2,500 per service.

Regulations due to go into effect July 15 require each Webcaster to pay a minimum $500 fee “per station or channel” regardless of the overall number of stations/channels they are streaming.

In making this offer, SoundExchange says it is addressing Webcasters’ concerns about their liability for per-channel minimums.

SoundExchange said that, like Congress asked, it is trying to work with small commercial Webcasters and non-commercial Webcasters such as public radio and college stations to provide below-market rates on terms similar to those they enjoyed in previous years.

The Digital Media Association, representing Webcasters, said the SoundExchange offer doesn’t go far enough.

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