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Streaming Fees Rejected – For Now

Streaming Fees Rejected - For Now

Webcasters are saying Tuesday’s decision by the Librarian of Congress to reject a proposed royalty fee proposal bodes well, although a final determination isn’t expected for another 30 days.
The fee proposed by the Copyright Arbitration Royalty Panel was to charge Webcasters Just over one-tenth of 1% for every streamed song – retroactively.
Many Webcasters said they’d have to shut down their businesses if the fee was approved as proposed, while the Recording Industry of America says the recording artists and composers should be compensated for their work.
RIAA President Cary Sherman stated, “The librarian has rejected the arbitration panel’s determination, but we do not know why or what decision the librarian will ultimately make based on the evidence presented. Since both sides appealed the panel’s determination, anything is possible.”
NAB was pleased with the decision. EVP for Law and Regulatory Policy Jeff Baumann
Said, “We are hopeful the librarian’s final determination will result in rates and terms that reflect market reality.”
“We are hopeful that the Librarian will set new rates based upon a percentage of revenue alternative and will lower the per performance royalties as set forth in our petition,” said John Jeffrey, evp/general counsel, Live365.
Jonathan Potter, executive director of the Digital Media Association echoed that thought.
The Webcasters have proposed fees based on web station revenues, similar to the formula stations use for ASCAP and BMI fees.

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