Small Streamers Unhappy With SX Deal

http://techdailydose.nationaljournal.com/2007/08/small_streamers_unhappy_with_s.php 

David Oxenford, an attorney for Accuradio, Radio Paradise and other small commercial webcasters, responded late Tuesday to SoundExchange’s proposed deal on royalty rates for their streams through 2010.

He said the offer does not represent an agreement with all the small webcasters who were participants in the Copyright Royalty Board proceeding and who are parties to the appeal pending in the U.S. Circuit Court of Appeals for the District of Columbia.

The proposal also “does not address many of the most significant issues raised” by his clients when SoundExchange first made the offer back in May. The plan does not allow the sector to grow — limiting them to the same $1.25 million dollar revenue threshold that has been in place since 2002. It also imposes a new cap that will further limit the industry’s growth, Oxenford told us.

“With these limits, investment in these companies will be eliminated as no one will invest in companies that, when they reach the revenue threshold, will have to pay more in royalties than they make in revenues,” he said. Oxenford said his clients hope SoundExchange will continue to negotiate with them to reach a deal that will allow the businesses to grow.

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