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SoundExchange and "Pureplay" webcasters announce 2006-2015 royalty agreement

Posted on: 07/07/2009

SoundExchange and a set of “Pureplay” webcasters on July 7 announced that they had reached an agreement for sound recording royalty rates for the period of 2006-2015.

The deal includes a “discount” from the rates set by the Copyright Royalty Board for large webcasters, and offers smaller webcasters percentage-based payment options (specifics are here). The agreement is offered as an alternative to the CRB rates (RAIN coverage here) and covers royalties from 2006 to 2015 (2014 for small webcasters).

The three webcasters who participated in the negotiations and are the initial signatories to the deal are AccuRadio, Digitally Imported, and radioIO. However, other Internet-only webcasters including Pandora — whose survival was otherwise in question — should also be eligible to elect the license.

SoundExchange leaves it up to individual webcasters to elect whether they want to be covered by the new “Pureplay” license. They
recommend the deal for webcasters that “[derive] an overwhelming portion of their revenue from the streaming of sound recordings.”

After the agreement is published in the Federal Register, which should happen later this month, webcasters will have 30 days to decide if they will opt into the agreement. Any webcaster doing so must elect to withdraw from the appeal process of the CRB rates. This agreement was reached under the authority of the Webcaster Settlement Act of 2009, which was passed in early July (RAIN coverage here).

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  1. There’s a minimum supposedly – $25,000/yr. I don’t know about you, but there’s a LOT of small webcasters which would find even that fee onerous – 25 grand is a big chunk of money for a lot of folks… for hobby-type broadcasters, it’s going to spell shutdown, or hope to stay under the SoundExchange radar… much like pirate radio hopes to stay under the FCC radar…..

    RadioTom · Jul 7, 10:19 AM · #

  2. This deal does not benefit the small Internet Broadcaster at all. This deal was made to protect the top 10 or so Pureplay broadcasters and shut everyone else out. This deal let’s down the other smaller broadcasters who can’t nearly come close to forking over the minimum $25000 which by the looks of things was the intention of this deal all along. Welcome to Clear Channel 2.0. Very sad.

    Mark · Jul 10, 04:18 AM · #

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