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RAIN 9/26: New legislation would extend negotiations over royalty rates
·Sep 26, 03:03 PM
Posted by: Kurt Hanson

SATURDAY 12N CDT UPDATE

It’s confirmed that the NAB is trying to block H.R. 7094, as there is a possible outcome in which Internet-only streamers (e.g., DiMA members) and non-commercial broadcasters (e.g., NPR member stations who stream their simulcasts) get a favorable royalty rate while commercial broadcasters who stream end up with no relief at all.

The bill didn’t get to the House floor for a vote last night; it now looks like it’s coming up midafternoon today.

See “Kurt’s Blog” at right for a Friday afternoon news update (4PM ET).

NEW DETAILS EMERGING ABOUT TODAY’S WEBCASTING LEGISLATION

New details are emerging this afternoon about the legislation being introduced in Congress today that could provide critical life-support for the negotiations regarding performance royalties for Internet radio.

RAIN has learned that the bill is called the “Webcaster Settlement Act of 2008 (H.R. 7084)“ and authorizes SoundExchange, on behalf of copyright owners and performers, to negotiate an alternative royalty agreement before the end of the year with any Internet radio service, for a term beginning in 2005 and extending for as long as 11 years. (Because Internet radio royalties operate under a government license, Congressional authority is required to allow any negotiated settlement to take effect.)

According to a SaveNetRadio press release, “This legislation will benefit all webcasters, including NPR, college webcasters, small webcasters and broadcasters who put their stations on the Internet” by clearing the path for private negotiations to continue while Congress is in recess.

H.R. 7084 is a bipartisan bill introduced by Congressmen Inslee, Conyers, Smith, Berman, and Manzullo and apparently supported by SoundExchange, the RIAA, NPR, and DiMA. It is scheduled to be considered today under Suspension of the Rules in the House.

Updated at 1PM CDT with new information about the rumored Congressional legislation:

CNET REPORT: WEBCASTING BILL INTRODUCED IN CONGRESS

According to a report on CNET last night that is confirmed by RAIN‘s Washington, DC sources, a bill was introduced in Congress yesterday that would give SoundExchange and the Digital Media Association (DiMA) the legal authority to settle the webcaster royalty rate debacle after Congress adjourns on Friday. According to CNET, the bill would give the two sides until mid-December to cut a deal.

CNET’s sources say that such a bill reveals a resolution may be near, noting that “they wouldn’t be seeking the government’s blessing unless they were close.” For more, read CNET’s coverage here.

RAIN ANALYSIS: Of course, a deal put together between DiMA members and SX might or might not address the unique needs of small webcasters, broadcasters who stream, and non-commercial entities. Fingers crossed. — KH

UPDATE (1PM CDT): RAIN’s sources tell us that the bill in Congress today would permit any of the relevant webcaster groups, not just DiMA, to make a deal with SoundExchange. Better yet.

ACCURADIO, GREATER MEDIA LAUNCHPHILLY SMOOTH JAZZWEBCAST

After a three-week absence, Smooth Jazz has returned again to the Philadelphia market, thanks to a new home at PhillySmoothJazz.com, a new multichannel online music station launched by AccuRadio with the support of Greater Media Philadelphia. Built using AccuRadio’s new Slipstream Radio infrastructure, the Internet-only radio station features five subchannels in addition to the main stream: Smooth Piano Jazz, Smooth Guitarists, Smooth Saxophones, Smooth Jazz Vocals, and Smooth Instrumentals.

The website notes that even more channels on the way, including one exclusively featuring jazz artists from the Philadelphia area. Listeners can also link to 14 channels of mainstream jazz from the player.

“With our new partnership with AccuRadio, former 97.5 Smooth Jazz listeners will have access to the music they love 24 hours a day,” said John Fullam, Vice President and Market Manager of Greater Media Philadelphia.

RAIN ANALYSIS: Traditionally, when radio stations change format, the core fans that the station cultivated over the previous years are told, essentially, to screw off. Greater Media’s approach in this situation is far more enlightened! — KH

PANDORA MOVING INTO TALK AND SPORTS?

On Wednesday in a “listener meet-up,” Pandora founder Tim Westergren revealed that the Internet radio service may soon begin licensing non-music content: “talk, sports, you name it,” reports Tom Taylor at Radio-Info.com. Westergren went on to say that he wants to “transform radio” and has satellite and terrestrial radio “in the crosshairs.” Around 60 companies are putting Pandora onto various home-streaming devices and mobile devices, said Westergren.

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Comment

  1. Woohoo! I hope they actually pass this bill, because they’ve sat on their butts with the Internet Radio Equality Act

    Matt Gunter · Sep 26, 02:16 PM · #

  2. Those who read this column know how much I want to see something reasonable and fair that works for both parties.

    But when we’re as close as we are to a worldwide financial meltdown, shouldn’t congress address that first?

    Bob Bellin · Sep 26, 03:14 PM · #

  3. Bob — They’ve got a lot of issues they’re dealing with tonight. Note that we’re #17 of 27:

    H.R. 6999 – Integrated Deepwater Program Reform Act of 2008 (Rep. Cummings – Transportation and Infrastructure)

    2) S. 2482 – To repeal the provision of title 46, United States Code, requiring a license for employment in the business of salvaging on the coast of Florida (Sen. Nelson – Transportation and Infrastructure)

    3) H.R. 3068 – Federal Protective Service Guard Contracting Reform Act of 2007 (Rep. Holmes Norton – Transportation and Infrastructure)

    4) H.Res. 1224 – Commending the Tennessee Valley Authority on its 75th anniversary (Rep. Cramer – Transportation and Infrastructure)

    5) H.R. __ – A bill related to Iran sanctions and divestment (Rep. Berman – Foreign Affairs)

    6) H.R. 7081 – United States-India Nuclear Cooperation Approval and Nonproliferation Enhancement Act (Rep. Berman – Foreign Affairs)

    7) H.R. __ – To authorize the transfer of naval vessels to certain foreign recipients, and for other purposes (Rep. Berman – Foreign Affairs)

    8) H.R. 6063 – National Aeronautics and Space Administration Authorization Act of 2008 (Rep. Udall (CO) – Science and Technology)

    9) H.R. 7083 – Charity Enhancement Act of 2008 (Rep. Lewis (GA) – Ways and Means)

    10) H.R. 7082 – The Inmate Tax Fraud Prevention Act (Rep. Ramstad– Ways and Means)

    11) S. 3477 – Presidential Historical Records Preservation Act of 2008 (Sen. Warner – Oversight and Government Reform)

    12) S. 3350 – Bill to provide that claims of the United States to certain documents relating to Franklin Delano Roosevelt shall be treated as waived and relinquished in certain circumstances (Sen. Schumer – Oversight and Government Reform)

    13) H.R. 2786 – Native American Housing Assistance and Self-Determination Reauthorization Act (Rep. Kildee – Financial Services)

    14) H.R.___ – Small Business Lending Improvements Act of 2008 (Rep. Velazquez – Small Business)

    15) S. 3325 – the Prioritizing Resources and Organization for Intellectual Property (PRO-IP) Act of 2008 (Sen. Leahy – Judiciary)

    16) S.1738 – Combating Child Exploitation Act of 2008 (PROTECT ACT) (Sen. Biden – Judiciary)

    17) H.R. 7084 – Webcaster Settlement Act (Rep. Inslee – Judiciary)

    18) H.R. __ – The Drug Trafficking Vessel Interdiction Act of 2008 (Rep. Lungren – Judiciary)

    19) S. 3296 – A bill to extend the authority of the United States Supreme Court Police to protect court officials off the Supreme Court Grounds and change the title of the Administrative Assistant to the Chief Justice (Sen. Leahy – Judiciary)

    20) H.R. 5057 – Debbie Smith Reauthorization Act of 2008 Debbie Smith Act (Rep. Maloney – Judiciary)

    21) S. 2840 – Military Personnel Citizenship Processing Act (Sen. Schumer – Judiciary)

    22) H.R. 6146 – To amend title 28, United States Code, to prohibit recognition and enforcement of foreign defamation judgments (Rep. Cohen – Judiciary)

    23) H.R. 3174 – Equal Justice For Our Military Act (Rep. Davis (CA) – Judiciary)

    24) H.R. 1777 – Need -Based Educational Aid Act of 2008 (Rep. Delahunt – Judiciary)

    25) H.R. 1283 – Arthritis Prevention, Control, and Cure Act of 2007 (Rep. Eshoo – Energy and Commerce)

    26) S. 3560 – A bill to amend title XIX of the Social Security (Sen. Baucus – Energy and Commerce)

    27) H.R. 2297 – Arizona National Scenic Trail Act (Rep. Giffords – Natural Resources)

    Kurt Hanson · Sep 26, 05:09 PM · #

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