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RAIN NEWS FLASH: Senate passes Webcaster Settlement Act; bill now goes to Bush
·Oct 1, 07:58 AM
Posted by: Kurt Hanson

WASHINGTON D.C. – Legislation authorizing SoundExchange to negotiate royalty agreements with webcasters on behalf of copyright owners and performers between now and February 15th has been approved by the U.S. Senate.

The Webcaster Settlement Act of 2008 (H.R. 7084), passed unanimously in the House of Representatives on Saturday evening, was approved by the Senate yesterday evening and now awaits President Bush’s signature.

According to a press release issued by the advocacy group SaveNetRadio, “The SaveNetRadio campaign and its members thank the original sponsors of the Internet Radio Equality Act, Congressman Jay Inslee, Congressman Donald Manzullo, Senator Ron Wyden and Senator Sam Brownback for their tireless support and leadership for innovators and artists.

“We also thank Chairman Berman, Chairman Conyers, Chairman Leahy, and Ranking Members Smith and Specter for their leadership in support of the Webcaster Settlement Act. Thanks to them and many others in both the House and the Senate, today’s approval of the Webcaster Settlement Act has cleared the way for private negotiations that hopefully will confirm Internet radio’s future.”

RAIN Analysis: Supposedly the SX-DiMA and SX-NPR negotiations are going reasonably well — those parties were happy with a December 15th deadline in the bill. Next up after those will hopefully be the SX-SCW (Small Commercial Webcasters) and SX-NAB negotiations, plus negotiations between SX and college broadcasters and between SX and religious broadcasters.

DAVID OXENFORD WEIGHS IN ON WEBCASTER BILL

Many observers of Congress’ approval of the webcasting bill are declaring the salvation of Pandora and Internet radio. Not so fast says industry attorney David Oxenford. The bill does not set new, affordable royalty rates for webcasters. And the bill does not change the controversial “willing buyer/willing seller” standard on which rates and terms are based. Read David’s full article in his Broadcast Law Blog here.

LIVE365 CALLS FOR SWSA TERMS TO BE INCLUDED IN POTENTIAL SETTLEMENT

Webcast aggregator and streaming provider Live365 is proposing that the rates and terms of the Small Webcaster Settlement Act (SWSA) (details in RAIN here) be part of any sound recording royalty settlement between webcasters and SoundExchange, now made possible through new legislation.

Yesterday the Senate passed a bill (which the President will presumably enact) that will enable webcasters and SoundExchange to negotiate industry-wide royalty terms (see today’s lead story). The SWSA, passed in November of 2002, enabled SoundExchange to negotiate a deal on behalf of all copyright owners (not just registered SoundExchange members). This allowed SoundExchange to offer a “percentage of revenue” royalty deal to small commercial webcasters — which was necessary for that segment of the industry’s survival. Then in May, 2007, SoundExchange offered (RAIN coverage here) a percentage-of-revenue settlement to the smallest of commercial webcasters who were willing to accept revenue and usage caps — but only made SoundExchange member artists’ work available.

“All parties have recognized the importance of a vibrant small webcaster community by providing them special rates and terms from the beginning,” Live365 CEO Mark Lam said in the press release.

ADOBE MAY BRING FLASH TO iPHONE…WITH APPLE APPROVAL

A senior engineer at Adobe Systems confirmed at a conference that his company is developing a Flash player for the Apple iPhone, reports FlashMagazine.com (here). Naturally, as the iPhone platform is closely guarded, Apple would have any final approval. A fully-functioning Flash player would enable (among other applications) the device to access Internet radio streams without the need for a downloaded application.

HIPCRICKET REVENUE DOUBLES

Mobile marketing company HipCricket’s revenues more than doubled in their first year, rising from $1.89 million from $860,000. HipCricket said it’s conducted 17,000 ad campaigns using its network of about 400 affiliate stations, reports Tom Taylor in Radio-Info.

SIRIUS XM BEGIN CROSS-PLATFORM PROGRAMMING

Howard Stern now appears on XM’s website while Opie & Anthony can be found on Sirius’, revealing that the merged companies have begun cross-platform programming. For more, read FMQB’s coverage here.



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