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Webcasters plan march on Washington
More than two dozen Web radio companies plan to speak to members of Congress on Thursday and Friday to protest proposed royalty rates they say could put many members of the industry out of business. The lobbying by the Webcasters follows a "silent" protest staged last week by hundreds of Web radio station operators who oppose rates that were recommended in February by a Copyright Royalty Arbitration Panel (CARP) working for the U.S. Copyright Office. The Webcasters' plight is taking on greater urgency as a May 21 deadline approaches for the Register of Copyrights to rule on the proposed royalty rates.
"These companies, small to large Webcasters, have come here to Washington on their own dollar--to let the members of Congress know that the CARP's proposed rate will effectively shut many of them down," said Kurt Hanson, publisher of "RAIN: Radio And Internet Newsletter" and one of the organizers of the "Day of Silence" initiative. Under the Digital Millennium Copyright Act, the Librarian of Congress is required to set sound recording performance royalty rates for Web radio stations by May 21. The arbitration panel recommended that Webcasters pay recording companies a rate of 0.14 of a cent per listener per song. While it appears small, Webcasters say it would add up to 200 percent or more of sales, threatening their business. The proposed fee would amount to about $9,000 a month for any midsize Webcaster, or about double what the station's revenue would be, industry representatives said. Recently, 20 members of the House of Representatives sent a letter to the Librarian of Congress, saying the proposal was "contrary to the intent of the DMCA and Congress's general policy not to stifle innovation" on the Web. The Recording Industry Association of America, which represents all the major labels, including AOL Time Warner's Warner Music Group and Vivendi Universal's Universal Music Group, lobbied Congress for the royalty payments, arguing that they were fairly valued. The Webcasters plan to attend an all-day roundtable discussion Friday at the U.S. Copyright Office, industry representatives said. "We are at the crux of a pivotal time in this industry," Hanson said. "If Internet radio is allowed to survive, it will obviously be a 'win' for consumers, but it will also be a 'win' for artists and creators, keeping alive new venues for their work." Story Copyright © 2002 Reuters Limited. All rights reserved.
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